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China'S Sports Shoes And Clothing Enterprises To See The Market Release Of The Three Major Brands

2022/5/12 16:54:00 0

TebuLi NingAnta

For Tebu in 2021, it will not only become the third sports shoes and clothing enterprise with revenue exceeding 10 billion yuan in China, but also the start of catching up after ten years of decline. However, in terms of volume, the gap with Anta and Li Ning is still difficult to make up in a short time.

This is especially true in the stock market. Anta's current market value is more than 200 billion Hong Kong dollars, while Li Ning's market value is more than 100 billion Hong Kong dollars, and Tebu's stock price can rise and fall even more.

Although the retail sales of its main brands in the first quarter of this year increased by 30% - 35% over the same period last year, with the repeated epidemic situation and the superposition of factors such as the off-season, the performance of Tebu in the new quarter is likely to remain under pressure, and the fluctuating stock price trend has become more confusing. In addition, although the growth of new brands such as gasway and sokoni was strong last year, their contribution was still very limited, which also added a cloud to the future expectation of special step under the "Five Year Plan".

01. The gap is increasing day by day

Tebu's predecessor can be traced back to the sanxingdai factory, which was founded in the late 1980s. With its quality advantages, Tebu has gone very smoothly in the early stage, and has become the first enterprise in Jinjiang to enter South America and Africa. However, although the overseas business has done well, the brand has not been launched. The high sales volume under the low price has greatly diluted the profit space.

In addition, the success of Beijing's bid for the Olympic Games at that time and the Olympic sports effect brought about by it made many sports enterprises create brands and play a marketing card, which makes Sanxing upgrade to a special step.

Tebu's experience of OEM factory soon brought benefits to Tebu. The annual output value of Tebu doubled in the second year after its establishment, and then went up all the way. It successfully landed in the Hong Kong stock market in 2008.

The Beijing Olympic Games has brought great development to the sports industry. As a result, the revenue scale of Tebu has been expanding year by year, narrowing the gap with Li Ning and Anta, and has become its profit peak in 2011.

However, with the weakening of the Olympic effect, the industry's high growth has become an inventory crisis. Affected by this, the performance of sports brands such as Li Ning and Anta began to decline significantly, and special step fell into the long-term mire of performance difficult to rise.

The revenue dropped from 5.55 billion yuan in 2012 to 4.343 billion yuan the next year, and then fluctuated. Even in 2017, Tebu's revenue scale did not return to the level of 2012. Although the five-year adjustment and brand expansion make the company get rid of the plight of weak performance growth, but by 2020, the profit will fall.

In fact, the net interest rate of the same period in 2021 did not rise to a very high level because of the low net profit rate. According to the financial report, the net profit of Tebu's parent company in 2011 was the highest, which was 966 million yuan. Since then, it has been fluctuating. In 2021, it is the highest level in the past ten years, which is also no more than 908 million yuan; However, Tebu's net interest rate dropped from 13.89% in 2013 to 10.50% in 2018. In 2021, despite the recovery of net profit, the net interest rate was only 8.88%.

In ten years, Tebu's revenue has further changed, but the net profit performance is not as good as before, which shows that its internal profitability is weak. Even if Tebu's revenue is high in 2021, it is difficult to attract more investors' attention. In addition to the performance of previous years, it also includes the widening gap between itself and Anta and Li Ning.

According to the financial report, the revenue scale of Tebu in 2021 is 10.13 billion yuan, but it has just broken through 10 billion yuan. The revenue gap with Li Ning and Anta is no longer the level of 10 years ago. That is to say, although the current volume is still the third in the industry, it is different from the past. Even the "Fifth Five Year Plan" is just to increase the special step from 10 billion to 20 billion. At that time, the gap with Anta and Li Ning will only be greater.

02. Followers of Li Ning and Anta

As mentioned above, the high growth of the industry brought about by the Olympic Games has resulted in high inventory, and then the performance of the whole industry has declined. For example, Li Ning's inventory of more than 3 billion yuan has been digested around 2016, while the xidelon and Delphi have fallen down. Hongxingerke and noble birds are not much better. After this reshuffle, more survivors struggled to survive, while Anta and Li Ning went to a higher level, and Tebu completely lost the opportunity to compete with each other.

The reason is that Tebu has always been an imitator. In the 1990s, Li Ning has become the sponsor of the Asian Games and the sponsor of the Olympic delegation. The strong advertising effect has made its revenue soar. Such excellent market performance has also attracted a number of Jinjiang shoe enterprises, such as Anta and Tebu, to enter the market one after another. In addition to looking for sports stars as spokesmen, there are also entertainment stars.

Among them, Tebu found Nicholas Tse as the spokesperson. Although there were many players in the market at that time and all played the role of star endorsements, due to the start of the sports market, the expansibility of the brand can be satisfied to varying degrees. For example, Tebu's revenue exceeded 1 billion yuan in 2005, and exceeded 2 billion yuan in 2008. At the same time, Anta's revenue reached nearly 5 billion yuan, and Li Ning's revenue reached 6.7 billion yuan.

In addition, as a result of the Beijing Olympic Games, special step also named the Olympic train, sponsored the Belarus Olympic delegation and signed up for CCTV to put in advertisements. In the same year, Hunan Satellite TV's "day up" was launched, and Tebu became its long-term naming business. The opening line of "this is the day up of special step (different)" greatly expanded the brand awareness and cultivated many young consumers. Obviously from Li Ning to learn marketing play, special step has a new change.

With the growth of revenue, Tebu's marketing expenses increased from 351 million yuan in 2008 to 734 million yuan in 2011, and its proportion in revenue increased from 12.24% to 13.25%.

In addition to the marketing play method that has become an important marketing method of the special step, Anta has also learned a lot from the buy buy buy special step.

If we want to analyze the reasons why Anta can surpass Li Ning to become the first brand of sports in China, it will naturally cost a lot of money. But the most important reason is that Anta purchased FILA (Feile) with 332 million yuan in 2009. After five years of operation, Feile turned losses into profits and became one of the most important growth drivers of Anta. According to the financial report, Feile's revenue in 2021 was 21.822 billion yuan, accounting for 44.24% of the total revenue.

From 332 million yuan to 218.22 billion yuan, it's hard to be unnoticed with a return rate of more than 60 times. As a result, Tebu started the buy buy buy mode in 2019. The total amount of money purchased by Conway, sport and sport is more than 2 billion yuan. But judging from its current performance, it is difficult to maintain a further optimistic attitude.

03. It's hard to make a new brand

According to the growth financial report, the proportion of Tebu's fashion sports and professional sports revenue in 2021 is 9.7% and 2%, respectively, which is 1.4% lower than that in the same period of last year, mainly due to the decrease of 2.5% in the contribution of fashion sports business. Although the contribution of professional sports business increased by 1.1% compared with the same period, the expected future growth is not high.

Tebu's professional sports business includes two sub brands of soconi and Melo, which are mainly aimed at professional running shoes. At present, the number of self operated stores in the first and second tier cities is totally 50. In the past three years, the business has contributed 10 million yuan, 72 million yuan and 184 million yuan respectively. It is difficult to support the future growth space in terms of the number of stores and revenue performance.

In particular, with the repeated occurrence of the epidemic, the application scenarios of professional running shoes are limited, and the consumption potential will remain under pressure. Even if it is close to the marathon race, with the general environment not optimistic, it will be more difficult for the professional sports business space to be further expanded.

According to the financial report, the R & D investment of Tebu in 2021 is 250 million yuan, the highest level in recent five years, while the total R & D expenditure in the past five years was 980 million yuan, accounting for 25.51%. In the same period, Li Ning's R & D expenditure reached 414 million yuan, Anta's R & D expenditure reached 1.13 billion yuan, not to mention Nike and Adidas, which have high R & D expenditures.

Tebu's focus on running shoes, which is quite different from Anta and Li Ning, is still far from the R & D expenses of the top players in the industry at home and abroad. In addition, with the influence of brand tonality, the chance of breakthrough in the future can be expected to be small.

However, Tebu said in the "Five Year Plan" put forward in September last year that the total revenue of professional sports brands in 2025 should reach 1.2 billion yuan, with an annual compound growth rate of 70%. At present, there is only 184 million yuan. There are still three and a half years to go before the target and a deficit of 1.016 billion yuan. To know that the new Tebu brand is still in a loss state, coupled with the impact of the environment, it is difficult to make people believe its potential.

In addition, Tebu also hopes that the revenue of fashion and sports brands will reach 2.8 billion yuan in 2025. In fact, the revenue of this business last year was only 970 million yuan, which was 28 million yuan less than that of the same period of last year. This is the key reason for the decline of its proportion of revenue. That is to say, it will take three and a half years for special step to complete the deficit of 2.03 billion yuan. However, the declining revenue performance last year belittles the realization of this goal.

At present, most of the 103 Direct stores of gasway and paladin are concentrated in overseas markets, while Anta's Philo has opened more than 200 stores in the domestic market in the past three years. In contrast, with the impact of the epidemic situation and other additional factors, even if it can achieve the expected goal, Tebu's fashion and sports brand will not be able to get rid of the loss situation.

Although the company has paid attention to this field from a strategic perspective, it is bound to be difficult to produce a good chemical reaction for Baili stores without assuming the position of management and grasping the core development strategy.

As a result, it is difficult for new brands to sustain the new growth momentum of Tebu in the future, especially under the increasing trend of low profit of main brand, whether or not special step can maintain growth and improve profit level is the focus of investors in the future.



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