Zhongxin Finance, April 10 (Reporter Xie Yiguan) Walking around the street, more and more domestic sports brands appear in front of us.

The position that once belonged to Adidas and Nike is now being "occupied" by domestic brands such as Anta and Li Ning.

Nike, Adidas China revenue declines

  "Since the Xinjiang cotton incident, I have not bought Nike or Adi at home. Although I will continue to wear the ones I bought before, but now I will give priority to domestic brands."

  There are not many people who have the same idea as Mr. Zheng.

On the Internet, many people said that they have not worn these foreign brands for a long time.

  The Xinjiang cotton incident and supply shortages have become important factors for the decline of Nike and Adi's revenue in China.

  On March 9, Adidas announced its 2021 annual report. Net sales in 2021 will increase by 15.2% year-on-year to 21.234 billion euros. This is also the first time that its global revenue has exceeded 20 billion euros, but its performance in Greater China is under obvious pressure.

Part of Adidas financial data.

  According to the data, from the second quarter to the fourth quarter of fiscal year 2021, the sales of Adidas in Greater China were 1.003 billion euros, 1.155 billion euros and 1.037 billion euros, down 15.9%, 14.6% and 24.3% year-on-year.

  In addition, with the announcement of Nike's third-quarter financial report in 2022, Nike's revenue in Greater China continued to decline by 5% year-on-year to US$2.16 billion, which is the second consecutive quarter of decline in its revenue in Greater China.

Anta surpasses Adi, and domestic brands rise in an all-round way

  In addition to consumption willingness and supply issues, Nike and Adidas are also facing the strong rise of Chinese sports brands.

  Anta Sports’ financial report shows that its revenue in 2021 will be 49.328 billion yuan, a year-on-year increase of 38.9%.

This revenue scale is about 1.44 times that of Adidas China and 97% of Nike China.

According to the current revenue growth rate, it will complete the overtaking of Nike China in 2022.

  In terms of market share, Euromonitor's statistics show that Anta Group's domestic sports shoes and apparel market share will be 16.2% in 2021, surpassing Adidas China's 14.8%, which is approximately equal to 2 Li Ning (8.2%) market share.

Data map: Anta Museum.

Photo by Xie Yiguan

  Although Anta surpasses Adidas and firmly occupies the position of the "big brother" of the domestic sports brand, from the perspective of net profit growth, Li Ning's development momentum should not be underestimated.

  In contrast, in 2021, Anta's net profit attributable to shareholders of listed companies increased by 49.60% year-on-year to 7.72 billion yuan, and Li Ning's net profit attributable to shareholders of listed companies increased by 136.15% year-on-year to 4.011 billion yuan, a growth rate far exceeding that of Anta.

  In recent years, Li Ning has played the "national tide brand", not only on the fashion week, but also announced that star Xiao Zhan will become the global spokesperson for sports trend products in 2021, expanding its influence among young people and boosting sales growth.

  Thanks to corporate business strategies, among the domestic sports brands, Xtep and 361 Degrees will also achieve high growth in 2021.

Among them, Xtep's net profit attributable to shareholders of listed companies was 908 million yuan, a year-on-year increase of 77.1%; 361 Degrees' net profit attributable to shareholders of listed companies was 602 million yuan, a year-on-year increase of 45%.

  "Under the background of sports trends and policy support, sports shoes and clothing have become a high-quality track with growth." Guosheng Securities analyst Ju Xinghai said that the rise of national brands has become a clear trend.

The domestic sports shoes and apparel market is highly concentrated and continues to rise. At the same time, with the rise of national brand awareness and the continuous progress of domestic brands, domestic brands also have opportunities to increase their share.

The 23rd China (Jinjiang) International Footwear Industry Expo and the 6th International Sports Industry Expo were held in Jinjiang, the "China Shoes Capital".

Photo by Lu Ming

The phenomenon of low research and development of domestic brands needs to be improved

  Although the performance of domestic sports brands is "full bloom", it is found that there is a common phenomenon of "low R&D" in the financial report. For example, Anta's R&D cost in 2021 will be 1.13 billion yuan, accounting for only 2.3% of its revenue; Li Ning's R&D expenses account for The revenue share fell to 1.8% from 2.2% in 2020.

Although the R&D expenditure has increased, the proportion of R&D investment is far lower than that of Nike and Adidas.

  Nowadays, domestic sports brands have made high-end layouts.

For example, the high-end sports fashion brand LI-NING1990 launched by Li Ning, the official flagship store shows that the highest price of a women's mid-length coat has reached 4,599 yuan; the price of some sports shoes has also begun to "go hand in hand" with Nike and Adidas.

  But some netizens said that now the price of sneakers is getting more and more expensive, and there is no improvement in quality and foot feel.

  From the perspective of the industry, if you want to take the step of high-end, in addition to marketing, domestic sports brands must increase investment in research and development, otherwise they will only fall into the situation of "high price and low quality".

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