- The specialist said as per the data in April-July 2022, Anta Sports’ same-store sales declined but the decline narrowed. In July, Anta Sports’ same-store sales dropped by around 10% and Li-Ning’s by around 5%. They told us in August that Li-Ning and Anta are likely to see double-digit growth in their same-store sales, with Li-Ning’s growth around 10% higher than Anta Sports’.
- The specialist believes Fila Kids’ average store sales are high, but its high price impedes its penetration into lower-tier markets. Anta Kids has performed better over the past few years because its designs are based on children’s needs, unlike before, and provides more affordable offerings than its peers, according to the specialist.
“At present, China’s domestic brands have provided great support for channel expansion… In the past, Adidas and Nike would definitely open stores in newly opened shopping malls. Now, they rarely appear.”
- We heard that in over 90% of Chinese cities, Anta Sports’ stores are directly operated. The specialist said the company’s stores’ sales per unit area are approximately RMB 1,300 per square metre since transforming to direct-to-consumer. This is slightly lower than Li-Ning’s, we were told. The specialist added that Anta Sports’ private traffic features a single-digit conversion rate and contributes 1-2% of GMV.
- Meanwhile, we heard Anta Sports offers bigger discounts than Li-Ning on its online channels, especially during important shopping festivals, but its online market share is still lower than Li-Ning’s.
- Finally, the specialist told us Anta Sport and Li-Ning are projected to offer a discount of 20-22% in H2 2022. They said Anta Sports’ channel expansion strategy contains plans for it to open stores with an area of 200-300 square metres in core shopping malls and department stores in China’s tier 1 and 2 cities. At the same time, we heard it is likely to decrease new openings of streetside stores.
For more human insights on sportswear brands in China, click on the transcripts below.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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