Domestic sports brand

Author: Blue Danube, Editor: Small Sister

In 2021, it was the key rise of the domestic sports brand.

Anta, Li Ning, Tete International, 361 four domestic sports brands have achieved resonance in performance and share price, and the two consecutive years of performance is better than foreign brands.

Recently, the overtime total share price increased in special summers, which once again attracted investors.

In response to the excellent performance of domestic sports brands this year, we will focus on two issues:

1. Is this expressive or historical?

2. Who will have the opportunity to create a rich return during this round?

[Short wins and long-term gaps]

For a long time, the domestic sports brand was rubbed on the ground by foreign brands.

This embarrassment has changed until recent changes, and the landmark event is the world's second world, which is the highest in China's sports brand.

This is not finished, "Resisted Xinjiang Cotton " in the first half of this year is more like a foreign brand to collectively "send people".

Under the high mood, the domestic sports brand is unprecedented by the brand sound or actual sales.

Third-party data shows that during the "618" promotion, only the official flagship store of the Tmall, the sales of domestic products and foreign sports sports have a huge part of the field.

In the domestic product, the sales of Anta Group, Li Ning, and Eshi increased by 65.9%, 42.6%, 49.6% respectively, with corresponding foreign capital, except for LULULEMON growth 15.6%, Nike, Adidas sales fell 25.5%, respectively. 31.2%.

The performance of "618" directly affects the medium-term performance of each company, with an average of 37% income growth in four domestic sports brands, the performance of the two foreign faucet Greater China, and Nike strives to achieve 11% growth. Adidas directly increased by 16%.

Even Adidas CEO Casper Rostd has had to admit that "the current (Greater China) market demand has biased toward Chinese local brands, not global brands."

▲ Data Source: Songhua Fushing IFIND

The big trend seems to be strong, how long it is still a problem.

The discussion of this issue is divided into two factions. One dispatch believes that "Xinjiang cotton incident" is only a combustion agent. The foundation behind is the national self-confidence and national self-confidence and national quality of domestic goods; the other party believes that the national emotions have been The gap between China's products and foreign-funded brands is not a short time.

Objectively, the rise of the national sports sports brand is irreversible, but it takes time to completely transcend foreign capital.

This is because the competition threshold of sports brands is high, and just Currently, the core competitive resources are firmly occupied by foreign capital.

These core competitive resources include: leadership of technical functions, top sports marketing resources, channels and supply chain resources.

First, since the sports shoes are very emphasized in professional and functional reliability, the precipitation breakthrough of R & D and technology is precisely the key to product quality upgrades. For example, Nike's AIR gas cushion technology and Adidas's Boost cushioning materials, and contributed a half-Wanjiang Mountain for revenue.

In this regard, the gap between China's brand and foreign-funded brands is large.

According to the data, the four domestic products have been in addition to Anta, the net other three R & D costs are only 1/3, 1/4 of Adidas, which has not yet investigated the largest Nike.

It is due to the gap between the research and development volume, leading to the frontier material, the structure of structure is promoted by foreign capital, and the domestic product is followed.

Second, review the growth history of sports giants, whether it is born in Nike, USA, and Cadis, Germany, is unhappy to use the utilization of top sports resources around the world.

NBA depth binds NBA, signing Jordan, Kobe, James and other NBA super superstars, established a highly barrier in the field of basketball. Adidas monopolizes the top football club and pulls the lead in the football field in the form of sponsored national team.

In contrast, most of the domestic products currently have currently not the world's top marketing resources, such as Li Ning sponsored the domestic CBA, there is a gap between natural and NBA; signing basketball star, except Wade, like Badler, wheat Colham et al. Is the second echelon. Cleaton, Hayward, also non-top stars. This is precisely an important part of improving brand adjustment.

Finally, domestic and foreign brands still have a gap between channels and supply chains. Like Nike, Adidas's head foreign brands are generally responsible for R & D and brand, hand over the channel to Shuo, Baosheng, such a national top distributor, supply chain, almost 100% out. In this way, it can achieve higher Net Assets yields while doing affecting business efficiency.

In summary, we believe that the momentum of the rise of the domestic sports sports brand is, but the distance between the foreign capital giants is still small in key competition dimensions. This is a rare opportunity for investors, which is a chance to grow with domestic sports brands.

[Quality track and breakout opportunity]

Sports Shoes This How high quality is there?

Bloomberg data show, the world's largest sports brand Nike in 1980 listed so far, 40 years of market capitalization rose over 2000 times. Even if only Nike, Adidas and other sportswear doing OEM Shenzhou International, over the past decade (2011 Year - 2021) the highest price also rose by nearly 40 times. Why is the field of sports shoes and apparel bull stock in large numbers?

We attributed to four main reasons: high growth, high profit margins, high concentration and high barriers.

First of all, in terms of high growth, according to Euromonitor statistics, in 2020 domestic sports shoes and apparel industry market reached 315 billion yuan, 2015--2020 average annual compound growth rate remained at 13.5%, is the clothing sub-sectors in the highest category growth .

Despite the fast growth, but compared to developed countries, domestic consumption of sports shoes and apparel in the "quantity, price" category upgrade and enhance penetration are remarkably gap.

In per capita consumption Price, sports shoes and apparel in my country in 2020 per capita consumption of $ 33, 11 times and 3.5 times the space from the United States and Japan respectively.

In the category penetration (sports shoes and apparel / shoes overall), the country is about 13%, less than half of the developed countries.

This all portends potential for growth sports shoes and apparel industry.

Secondly, high profit space. Horizontal comparison, profit margins sports shoes and apparel industry and the liquor industry, though not stunning, but the vast majority is sufficient rolling industry.

Statistics show that over the past five years, the head of several sports brand gross margin remained at 45%, net profit margin of around 10%, the best performing domestic brand Anta (to enhance the proportion of high-end brand Fila), 2020 nearly 60% gross margin, net margin nearly 16%.

Again, the degree of market concentration terms. To know that many seemingly huge industry, the bull stock does not appear in history, such as we are familiar with Chinese food industry, vinegar industry, the field of women's clothing, men's clothing and other fundamental reason is that market concentration is too low.

However, sports shoes and apparel industry completely avoided the pit.

Euromonitor data show, 2015-2020, my country's sports shoes market rose from 34.9% CR2 Zhi 43%, CR5 increased from 57.9% to 70.8%. Concentration trend is rising.

Finally, high barriers to entry.

Somewhat similar sports brand of liquor, once the high-end brand is difficult to do it later ones instead. Nike and Adidas is a typical example, in the past half century there have been two sides alternately ranking, but almost did not fall out of the top three position.

This feature ensures the stability of the supply side, which is the hallmark of a good track.

From the above-mentioned "four high" apparent dimensions can, not ordinary track sports shoes. However, such a good track, simply because the domestic brands after Kan late admission will people do?

Not so, as long as the right track, and later still living on the can.

Dema is one such example, Under Armor was founded in 1996, had 2014 --2017 years, the market share for three consecutive years the United States than Adidas.

The reason behind the analysis, summed up in two points:

First, during this period Dema seize the "specialization" of sports consumption outlets.

Measurement of biomass Dema tight-fitting T-shirt, for example, it can monitor and immediate delivery athletes heartbeat, gravity and other data in order to analyze data on physical condition.

Second, Dema be introduced on a precise top sports marketing resources.

The most typical is the 2014 signed basketball superstar library, and swimmer Michael Phelps, even when even US President Barack Obama are often dressed in sports shoes and apparel Dema appearance. The strong call of Dema professional brand image seared in the minds of consumers the United States.

However, the neglect of the channel improved efficiency, as well as failure to develop diversified category, Dema quickly defeated.

Domestic sports brand Under Armor can rise and fall in the process, its essence, to its dregs, increase their breakout chips.

[Subject] Assessment and Prospects

By 2020, according to the domestic market share ranking, the four major domestic sports brand Anta, respectively (15.4%), Li Ning (6.7%), Xtep (4.7%), 361 (2.6%).

See, Li Ning and Anta in the first echelon, Xtep and 361 Degrees ranked second echelon. Anta stand out was the trend, which is more than twice the market share of Li Ning.

This also indicates that, just from the perspective of market share, Anta has taken the lead broke through. Anta is currently valued at more than HK $ 310 billion, ahead of Li Ning HK $ 210 billion, and Xtep HK $ 33 billion and 361 degrees HK $ 8 billion.

Learning from history, one can know the rise and fall.

We can sort out the elements breakout success of Anta, jumped to assess the future potential of the other three sports brand.

"The acquisition and successful operation Fila, the main brand of Anta channel efficiency reforms and enhance the ANTA brand power" are the three key factors Anta and on the counter-attack.

First, Anta 2009 acquisition of high-end Italian sports brand Fila made a successful operation, it has been the main alternative ANTA brand become the first pillar of the company's performance.

Second, at the same time, Anta help Fila Direct channel construction, the basic completion of the main brand of Anta and online channels DTC reform.

Third, by putting an end product of continuous innovation and key marketing resources, the main brand of Anta enhance the brand, to cater to the trend of sports shoes and apparel consumption upgrade.

Overall, the success of Anta is the result of the internal repair, which is dominated by the order. In accordance with the two dimensions of "domestic repair, foreign purchase", the remaining three national sports brands can be roughly divided into: Tego International leads in the foreign purchase, Li Ning leads in the internal repair dimension, relative to the bottom of 361 degrees.

Specifically, Li Ning is far ahead of internal development. The direct embodiment of branding is the premium capacity of the product. In short, excellent branding is "the income of high-end products is relatively large".

▲ Data Source: 2020 Tmall Official Flagship Store

Quoted by Guixin Securities: 2020 Tmall official flagship store all brand sports shoes, Li Ning sports shoes are the lowest, but the price section above 400 yuan is the highest.

The premium capacity is derived from Li Ning's pursuit of sports shoes, the strong delivery of marketing resources, and the can't be ignored.

Technically, Li Ning "䨻 科技" has a considerable word of mouth, based on this technology, Li Ning launched the high unit price products "Virtual" "Wade" "Flaude", "Flaw", etc., has achieved good sales.

On the marketing, Li Ning binds the CBA event, and sequentially invigorate the star in the field of basketball, running, tennis, badminton, and overall marketing is second only to Anta.

In terms of sports, "China Li Ning" has been red after the New York Fashion Week in 2018, and the other growth of Li Ning is also very big.

In contrast, the focus on the self-owned brand of 361 degrees, and the performance is relatively dim. The above price segment is shown, and the 361 degree has not yet out of the quagmire of low-cost competition. More than 50% of the company's sports shoes are less than 200 yuan.

Looking at the business level, the company's main running product, and mainly attacking the mass market, but due to the lack of investment in R & D and marketing, the company has previously charged only 2.83% (15.32% of the same period), while gross profit margin The net interest rate is still declined.

On the other hand, in the foreign purchase dimension, Step International in the main brand transition running segment is followed by Anta.

The company acquired the high-end brand "Somoni" "Mile" and the "Paradate" of "Somoni", "Mile" and the Fashion Sports of Fashion Sports, respectively, the company's "Palain", and pursuit of the main brand of Simshi. Look for the second growth curve.

In June of this year, "Ga Shiwei" (main professional tennis shoes, etc.) and "Palain" (main fashion military boots, etc.) are the special step around the world, and receives a $ 65 million investment.

However, due to the 2021 report, the fashion exercise and professional sports camps acquired by Simhed, accounting for 13%, all in a loss.

It should be noted that Anta is in "Fiile", it is still in the "Di Sang" (ski, comprehensive training, running, golf, and women's fitness) "Cologne" (high-end outdoor products), and "Amphor Sports" (including Salomon, Wilson and other sports shoes, equipment, etc.) and other acquisitions.

As of 2021, all other brands of Anta achieved an income of 1.407 billion yuan, an increase of 90.1% year-on-year, higher than the growth of the Jet International's acquisition.

In summary, in the four major sports brands of China, Anta's leading naked eye, the potential is the largest; Li Ning's brand is not underestimated, the development is full of development; T-Shi International has completed the main industry transformation in the running field, but the new brand has not been lost, high The joining of 瓴 is to put the catalyst; 361 degrees "not fire".

With the further penetration of the sports people, and the farten of the domestic sports brand, the priest is still behind.


This paper relates to the content of the listed company, based on the personal analysis and judgment of information (including but not limited to interim announcements, regular reports, and official interactive platforms) based on its legal obligation, information or opinion in the text The market value observation is not responsible for any action due to adoption of this paper.


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