The Beijing Olympic Games was finally pressed to postpone the "delay button" and was postponed until July 23, 2021. What impact will this have on domestic sports brands?
More than ten days before this, the NBA also announced that it will suspend all remaining games in the 2019-2020 season, and the league will enter a lockout state. The 16th European Cup and the top five European football leagues have all been postponed or suspended. As of now, the NBA, F1 and marathons around the world have also been cancelled or postponed. According to incomplete statistics, since the beginning of 2020, there have been more than 40 major sports events that have to be postponed or cancelled due to the impact of the epidemic. Originally, in the rendering of many events, 2020 is a sports year, but now the situation has changed.
Zhang Qing, founder and president of Beijing's key road sports consulting company, said that the Olympics was postponed until next year, and the company lost a positive factor that could have boosted sales. "Especially for those categories that are closely linked to professional sports, it is often necessary to indicate that the performance of athletes in large-scale events brings sales stimulation, and now it will also be affected."
Obviously, in 2020, the "touch points" between sports brands and consumers are greatly reduced. In the opinion of the industry, under the epidemic, the sports brand's 2020 will be quite ups and downs, but this does not mean giving up, because it is necessary to make sufficient preparations and adjustments to meet the 2021 industry climax.
Prior to this, a number of domestic sports brands have worked hard in response to the low sales in the epidemic. It is understood that because the offline stores are affected by the epidemic and need to comply with the anti-epidemic requirements of various provinces, cities and regions, Anta Group actively serves consumer shopping needs through e-commerce channels. In the first few days of the epidemic, Anta launched the "Full Retail" project, with more than 30,000 employees and distributor partners participating. The sales teams and brand support teams of all brands, as well as all management and sharing teams, joined the war "Open a micro store.
In order to make up for the impact of the epidemic on terminal sales, 361 Degrees Group previously stated that it would transfer sales to e-commerce platforms and similarly launched a call for "full marketing". Prior to this, it also strengthened online by adding "WeChat applets" Marketing, to minimize the impact of the epidemic on the retail side.
Before the outbreak, the overall trend of the apparel industry is not optimistic, but the sports apparel market segment has a unique scenery, and the performance of leading listed companies has maintained double-digit growth for many years.
In terms of performance, several leading sports groups in China, Anta Sports, Li Ning, Xtep International and 361 Degrees, listed sports apparel companies achieved double-digit net profit growth in 2019.
Anta Sports achieved operating income of 33.93 billion yuan in 2019, an increase of 40.8% year-on-year; net profit attributable to its mother was 5.34 billion yuan, an increase of 30.3% year-on-year, which greatly exceeded market expectations. The company's leading position in the domestic sports apparel market is further consolidated.
Li Ning achieved operating income of 13.87 billion yuan in 2019, an increase of 32.0% year-on-year; net profit attributable to mother was 1.499 billion yuan, an increase of 109.6% year-on-year.
Xtep International achieved operating income of 8.183 billion yuan in 2019, an increase of 28% year-on-year; net profit attributable to its mother was 728 million yuan, an increase of 11% year-on-year. The company stated that performance growth came from the implementation of a multi-brand strategy. In 2019, Xtep International announced the launch of a multi-brand strategy. During the year, it successively acquired 4 sports brands to form a multi-brand strategy system.
361 degrees achieved operating revenue of 5.63 billion yuan in 2019, an increase of 8.6% year-on-year; net profit attributable to its mother was 430 million yuan, an increase of 42.4% year-on-year. The company said that in 2019, the company anchored and satisfied consumers' preferences, actively launched joint products with a number of classic high-quality IP, and successfully created a series of explosive models, which caused a warm response in the market.
In terms of the overall situation of the industry, the rapid growth of the performance of listed sports apparel companies is inseparable from the industry's high prosperity. Benefiting from the general trend of consumption upgrading and the continued popularization of national fitness, the sports apparel industry has sprung up and the market potential is huge.
The data shows that from 2013 to 2018, the compound annual growth rate of the sports shoes and apparel market reached 14.47%, and the market size in 2018 reached 264.76 billion yuan. According to Euromonitor International's forecast, the compound annual growth rate of the sports shoes and apparel market in the next five years will reach 10.42%, which is significantly higher than the overall growth rate of the apparel industry. The industry scale is expected to reach 43.446 million yuan in 2023. Open Source Securities pointed out that compared with developed countries and regions such as Europe and the United States, the domestic sports shoes market penetration rate is low, the ceiling is still far, and the market has a lot of room for growth.
In terms of market, while the performance of listed companies is growing rapidly, market competition is becoming increasingly fierce, and industry differentiation is intensifying. After Anta Sports surpassed Li Ning and took the top spot in domestic sports apparel brands in 2012, the gap with the second echelon continued to widen and the leading position continued to be consolidated. As of 2019, Anta sports revenue and net profit have maintained double-digit growth for 6 consecutive years, and net profit has maintained a growth of more than 30% for 3 consecutive years.
Other sports apparel brands adjust their strategies to avoid falling behind in a rapidly developing and highly competitive market environment. Take Li Ning as an example. In recent years, the company has continued to deepen the development strategy of "single brand, multiple categories, and multiple channels" and returned to the track of rapid growth in performance.
As the strength grows, domestic sports apparel brands gradually move towards global competition. Taking Anta Sports as an example, the company is currently the third largest sports apparel company in the world after Nike and Adidas. In 2019, the company completed the acquisition of Amaden, opening the road to global operations. At the beginning of this year, Anta proposed five five-year development plans for Amaden 5 "1 billion euros".
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