Chinanews.com, Beijing, September 8 (Gong Hongyu, Zuo Yuqing) "Adi and Nike are not fragrant anymore. Wearing domestic products is the trend." In the first half of 2021, the sporting goods market witnessed a new storm of consumption.

　　Recently, sports brands have successively announced semi-annual reports, and domestic brands' revenues have risen across the board, and their net profits have increased.

Among them, Anta's report card is the most eye-catching.

In the first half of 2021, Anta Sports' revenue reached 22.8 billion, a year-on-year increase of 55.5%, setting a new high for the second half of the year, surpassing Adidas China’s 18.298 billion yuan, becoming the second place in the Chinese market, and the gap with Nike (27.34 billion yuan). Also greatly reduced.

The picture shows the official sportswear for the 2022 Beijing Winter Olympics and Paralympics displayed at the Jinjiang Anta headquarters.

Photo by Zhang Bin

　　In the first half of the year, Anta Group's net profit reached 3.84 billion yuan, a year-on-year increase of 131.6%, setting a new historical record, and its gross profit margin increased by 11.2 percentage points to 52.8%.

The FILA family, its main brand, maintained stable and high growth, with a revenue of 10.82 billion yuan in the first half of the year, an increase of 51.4% year-on-year, which accounted for nearly half of Anta Sports' revenue.

　　Not only Anta, but affected by favorable policies and buffering of the epidemic, national sports consumer confidence has gradually recovered, and sports brands have all given good answers.

　　Li Ning's revenue in the first half of the year was 10.197 billion yuan, a year-on-year increase of 65%, which is equivalent to 70% of the full year of 2020.

In terms of profitability, Li Ning's net profit reached 1.962 billion yuan, a year-on-year increase of 187%; gross profit margin increased by 6.4 percentage points to 55.9%.

　　In addition, Xtep's revenue in the first half of the year increased by 12.4% to 4.134 billion yuan; 361° achieved revenue of 3.107 billion yuan in the first half of the year, a year-on-year increase of 15.7%.

　　In stark contrast to the thriving domestic brands, foreign brands such as Adidas and Nike, which once occupied most of the Chinese market, did not meet expectations in the Chinese market in the first half of the year.

　　Adidas’s second-quarter 2021 financial report shows that the group’s revenue increased by 52% year-on-year, of which revenue growth in Europe, the Middle East, and Africa was 99%, North America revenue was 87%, Latin America was 230%, and Asia-Pacific was growing. Only 66%.

Among them, Greater China was the only region with negative revenue growth for Adi in the second quarter, with revenue falling 16% year-on-year.

On May 22, more than 8,000 hiking enthusiasts in Shaanxi walked Sage Mountain.

Photo by Shaanxi Provincial Sports Bureau

　　According to data from the Tmall platform, from January to July this year, in terms of corporate dimensions, the total turnover of Anta Group’s brands ranked first in the “sports outdoor” category. This is also the first time that a foreign brand “missed” on the list and was recognized by China. The company got the first place on the list.

　　Why did the domestic sports brand rise?

In the opinion of analysts, on the one hand, the Xinjiang cotton incident provides an opportunity for domestic products to expand their market share.

The image of Nike and Adidas in the country has plummeted, and consumers have turned to buying domestic sports brands.

　　On the other hand, with changes in consumer concepts and domestic companies acquiring foreign brands and improving design levels, some consumers have begun to favor domestic brands that are relatively more "good quality and cheaper".

　　Since July, the fire of the national tide is still burning very vigorously.

Brands such as Hongxing Erke and Guirenniao have won numerous spotlights due to their huge donations to the Henan flood disaster.

On July 28, there were many customers in the Hongxing Erke store, and the other sports goods store next door (pictured left) seemed quite deserted.

Photo by Liu Wenhua

　　For example, Hongxing Erke has repeatedly rushed to the hot search, its live broadcast room constantly refreshed its viewing records, and even the sales system collapsed due to too many orders.

According to data from Douyin, during the Tokyo Olympics, sales of Douyin e-commerce sporting goods increased by 365% year-on-year, and Hongxing Erke became the most sought after sports brand. Guirenniao, Li Ning and Anta, also domestic products, also ranked in the top five.

　　How far can this wave of domestic sports brands go?

According to Huatai Securities analysis, in the short term, the Xinjiang cotton incident promotes domestic brand sales; in the long term, local clothing brands have advantages; in the medium and long term, domestic sports brands that can compete with Nike and Adidas are expected to be cultivated, and Anta has great potential.

　　Which brand of domestic products do you like to buy?

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