Anta Group announced its five-year strategic targets and a 24-month acceleration plan “Lead to Win” for its Anta brand.
Under its five-year strategic targets, Anta plans to achieve a compound annual growth rate (CAGR) of retail sales of the next five years of 18-to-25 percent. Online sales are expected to expand at a CAGR of over 30 percent and account for 40 percent of total retail sales by 2025.
The five-year plan calls for a focus on expanding stores revenues in first-, second- and third-tier cities in China so that they contribute to over 50 percent of total retail sales by 2025. Anta also plans to double the number of stores in shopping centers, increase overall market share by 3-to-5 percent and maintain Anta’s position in Chinese sports brands.
According to Ding Shizhong, chairman and CEO, Anta Group, “30 years on, Anta has maintained growth for seven consecutive years through multiple reforms and transformations and became the first place in market share in China. What is exciting is that the sportswear industry in China has entered a golden age. Taking advantage of the accumulated sports resources over the years and the love of Generation Z for Chinese brands, I believe that the Anta brand has the potential and ability to achieve accelerated growth to lead the market. Anta will not only help national professional athletes improve their performance through our world-class R&D innovation capability but also will apply premium-quality technology and materials to mass products to provide sports lovers with more professional choices. Anta is also committed to promoting sustainable development and green growth and fulfilling social responsibilities. I believe that after over 30 years of accelerated transformation, the Anta brand will achieve rapid growth in the next 24 months and become a leading sports brand in China.”
Other key points under the plan include:
- Leverage its global advanced sports R&D capability: In the next 5 years, Anta is to invest over 4 billion yuan to improve its global R&D system, in a move to increase the proportion of high-end products to capture the mainstream consumer market with core technology;
- Give priority to products and centralize resources to gain breakthroughs in core sports categories: Anta will continue to invest in core sports categories, including running, basketball and women’s. By 2025, it plans to increase the annual sales volume of running shoes from 20 million pairs to 40 million pairs and basketball shoes from 6 million pairs to 12 million pairs and the retail sales of women’s wear to close to 20 billion.
- Seize the opportunity of the “Two Olympics”: Aim at the “Two Olympics” (2020 Tokyo Summer Olympics and 2022 Beijing Winter Olympics). Anta will lead Olympic marketing by rolling out the branding concept of “Sports for life, Anta for China,” and capture mainstream business districts in first- and second-tier cities by developing “Champion Series” high-end products and setting up Anta “Champion Stores”.
- Win and lead Generation Z: Target emerging sports favored by Generation Z working closely with idols and athletes with sports attributes and popularity with GenZ to include Wang Yibo and Gu Ailing, foster a young people-oriented designer platform and cooperate with KOLs to interact with Generation Z on social media.
- Accelerate DTC transition and digitalization: Consolidate advantageous multi-level channels and increase exposure on mainstream channels and the number of stores in first-, second- and third-tier cities and shopping malls. In the next 24 months, store efficiency will jump over 40 percent and direct-to-consumer marketing will contribute 70 percent of total retail sales from higher product efficiency and strengthening the fast replenishment model and integration of omnichannel and products. Invest over 400 million yuan in digitalization in the next 24 months; the number of effective members will double to 120 million by 2025, with a member contribution rate of 70 percent and a repurchase rate of 40 percent; optimize the private traffic system to increase retail sales to over 20 percent; improve product efficiency through the digital revolution, and increasing the five-month sell-out ratio to 75 percent in the next 24 months.
- Maintain the leading market position of Anta Kids: Focus on running, outdoor activities, football, and basketball; strengthen the technology R&D of children’s exclusive sports; and sponsor sports events and training camps for children. Online business is expected to account for over 40 percent of the total by 2025 through optimizing the channel structure. The market share will increase consolidating Anta’s position in the children’s sports market.
- Promote sustainability and sports welfare: Invest 600 million yuan in sports welfare in the next three years to support rural revitalization; further ESG construction and sustainability R&D; Anta and WWF, the world’s largest environmental protection organization, join together to help the green transformation of over 3000 scaled textile suppliers in the industry and promote biodiversity conservation.
Photo courtesy Anta Group