"Functionalization, Differentiation, Premiumization" Are Key to Success in Sportswear Industry
HONG KONG, Jan. 12, 2017 /PRNewswire/ -- ANTA Sports Products Limited ("ANTA Sports" or "the Company", stock code: 2020), a leading sportswear brand in China, is pleased to announce the publication of the research report "China gets its game on: The emerging power of China's sports and fitness industry" (the "report"), which was sponsored by ANTA Sports and written by the Economist Corporate Network ("ECN"). This publication marks the first time a sportswear company has come together with an authoritative international economic and financial media outlet, The Economist, and its ECN division to research the scale and potential of the sports and fitness industry in China.
Over 80 senior executives from leading companies, the investment community and media outlets attended the presentation and panel discussion. Aside from Rob Koepp, Director at ECN, who discussed the findings of the report, other panelists included Erick Haskell, Managing Director, Greater China at Under Armour; Justin Downes, President at IMG Ski Resort Management; and James Zheng, Executive Director at ANTA Sports and Brand President of ANTA, who shared their views on the report, and discussed the prospects and opportunities in China's sports and fitness industry.
James Zheng, Executive Director at ANTA Sports and Brand President of ANTA, said, "This independent research, along with the report's discussion with senior management and experts in the industry, will help policymakers, industry players, sports lovers and the public gain more detailed understanding of the latest developments in China's sports market from a macro perspective, as well as revealing the market's future landscape and opportunities. It is our hope that the report will generate more interest in China's sports market and initiate discussions on its development."
- The Chinese government is backing programs which promote sports among the population, with the country's State Council aiming to increase the size of China's sports and fitness market to exceed RMB 5 trillion in value by 2025, more than triple the RMB 1.5 trillion it was worth in 2016. It is expected that China's sports-to-GDP ratio will reach 3% or higher by 2025, significantly higher than the number recorded in 2015 of 1.9%.
- China is supporting the development of soccer by enhancing its performance in the sport. In addition, the hosting of the Winter Olympics in 2022 will further promote winter sports domestically.
- Traditional wellness practices are being combined with modern popular sports, with people now paying more attention to their health and athletic performance, which in turn substantially increases the demand for sportswear.
- There is much higher demand for sportswear that can enhance sports performance, which means that sports participants and consumers are tending to choose sportswear based on "functionalization", "differentiation" and "premiumization".
The future landscape:
- Chinese economic growth is expected to slow down, but individual consumption growth will continue to outpace the GDP growth.
- As the population continues to age, those above the age of 40 are expected to make up half of the total population by 2020. The over-40s will outnumber those below 40 years-old by almost 40% in 2030.
- The change in population demographics will have no impact on the growth of individual consumption. As society becomes more affluent with stronger consumption, it is estimated that total individual consumption levels in 2030 will be three times higher than 2015.
- Approximately one-third of Chinese people exercise frequently, which implies that 434 million people in China are physically active. As the economy continues to grow, it is estimated that the number of people who regularly exercise will further increase.
- The sports footwear and apparel market is predicted to see strong growth in the future. According to market source, sportswear sales will reach RMB 254 billion by 2020, a 54% jump from 2015.
James Zheng continued, "Going forward, ANTA will continue to execute its 'Single-focus', 'Multi-brand', and 'Omni channel' strategy, and utilize online and offline sales channels in order to cover all market segments, from mass to high-end consumers. We will further improve the consumer experience and improve the innovation, functionality, design and quality of our products according to the general shift towards premiumization in the market. This will trigger the growth potential of the Group's brands and increase market share."
Please refer to the URL below for the full report:
About ANTA Sports Products Limited
Established in 1994 and listed on the Main Board of Hong Kong Stock Exchange in 2007, ANTA Sports Products Limited (stock code: 2020.HK) is one of the leading sportswear management enterprise in China. For many years, we are principally engaged in the design, development, manufacturing and marketing of ANTA sportswear series to provide professional sporting goods to the mass market. Our professional sportswear includes sports shoes, apparel and accessories. In recent years, we started moving full steam ahead on the strategy of "Single-focus, Multi-brand, and Omni-channel" to deepen our footprint in the sportswear market with a vibrant brand portfolio, including ANTA, ANTA KIDS, FILA, FILA KIDS, Descente and NBA, seizing every opportunity arose in all important retail channels as a result of the successful Omni-channel strategy to unlock the potential of mass and high-end markets in China. By integrating various resources, including sponsorship and endorsement, advertising and promotional campaigns, corporate social responsibility initiatives, professional store image and high quality, value-for-money merchandise, we strive to reinforce the image of our brands and the level of brand association in the minds of our customers. Our goal is to become the nation's top sportswear management enterprise with the best brand reputation and largest market share in China, and a respectable and sustainable world-class sportswear company in the long run.
YouTube Channel: ANTA Insight
For further information, please contact:
Citigate Dewe Rogerson
Joe Pan/ Samuel Xiao
Tel: +852-3103-0110 / +852-3103-0128
SOURCE ANTA Sports Products Limited