Specialist
Executive at a Chinese sports retailer
Agenda
- Anta (HKG: 2020) – Q2 2022 revenue performance review, sales dynamics since July, H2 growth prospects and sales target completion rate
- Sales performance of Anta Kids and comparison of competitive strengths and weaknesses with peers
- Offline penetration rate across cities, market share, stores’ sales per unit area, inventory management, discount rate and store expansion strategies
- Private domain operations, sales dynamics in online channels and O2O operations
Questions
1.
According to the financial report of Anta Sports Products (Anta), the retail sales revenue of its main brand Anta in Q2 2022 declined by 5% YoY, but the overall retail sales revenue of the brand in H1 increased by 5% YoY. How greatly did the pandemic cause the brand’s decline in Q2? Are there any other reasons for the decline apart from the pandemic?
2.
The pandemic has led to a slump in China’s overall economy and the real estate industry in 2022. In this context, is there any sign of consumption downgrading or spending power decline?
3.
How did your same-store sales of Anta, Li-Ning and other sports brands change in July-August 2022 compared with the same period of 2021?
4.
From the perspective of future consumer demand, is there a trend that consumers gradually shift demand from Fila to the main brand Anta that focuses more on the mid-range and low-end markets?
5.
You just mentioned the development potential of Anta Kids. Can you compare the competitive strengths and weaknesses of Anta Kids, Fila Kids, Xtep Kids (特步儿童) and Li-Ning Kids (李宁儿童)?
6.
What’s your progress in completing this year’s sales target?
7.
Some famous international brands such as Nike and Adidas are offering bigger discounts. Do you think the competition will further intensify in H2 2022? Will Li-Ning and Anta continue to grab some market share from these international brands in Chinese market?
8.
How about the sales growth plans of Anta and Li-Ning next year?
9.
Anta has set a five-year strategic goal for itself, in hope that its market share will increase by 3-5%. Do you think it is possible to achieve this goal in the future?
10.
Anta’s main brands are pushing forward the DTC (direct-to-consumer) transformation. Compared with its previous model, can you analyse the changes in the single-store sales per unit area and net profit margin?
11.
Which quarters of 2023 have Anta’s distributors set purchase targets for? What is the purchase growth rate for these quarters?
12.
Are offline stores developing private domain operations? Could you please compare the strengths and weaknesses of Anta’s main brands with their major competitors in private domain operations?
13.
What about Anta’s online channel planning and sales dynamics?
14.
Are Anta’s online and offline prices stable? Does it have comprehensive inventory data online and offline?
15.
What will be the future channel expansion strategy of Anta?
16.
You mentioned Anta’s growth plan and target for 2023. What about Li-Ning’s growth target?
17.
You mentioned the GMV data this July and August at the beginning. What’s the gap between the GMVs of Li-Ning and Anta in July? How do their GMVs increase YoY?
18.
Anta will open new stores such as the champion store in mainstream commercial districts of tier 1-2 cities. What do you think of its new store planning? Could you please analyse the differences between its new and old stores?
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