Jan. 12, 2017

ANTA Cooperates with

The Economist to Publish 

China Sports Market Research Report

(Hong Kong, 12 January 2017) ANTA Sports Products Limited is pleasedto 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, the world’s second largest economy. The report provides in-depth analysis for both domestic and international players in the industry with valuable references, statistics and insights.

Over 80 senior executives from leading companies, investment community and media outlets attended the presentation and panel discussion. Aside from Rob Koepp, Director at ECN, who talked about 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 all shared their views on the report and discussed the prospects and opportunities in China’s sports and fitness industry.

The report reviewed several factors which affect the development of the sports market, including the size of the entire market, government's policies, sports culture and healthy lifestyles, to analyze and forecast the future landscape of and opportunities in China’s sports and fitness industry. Important findings included:

The future landscape

l   Chinese economic growth is expected to slowdown, but individual consumption growth will continue to outpace the GDP growth.

l   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 outnumberthose below 40 years-old by almost 40% in 2030.

l   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 in 2030 will be three times higher than 2015.

l   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.

l   It is estimated that the sports footwear and apparel market will see strong growth in the future. According tomarket source, sportswear sales will reach RMB 254 billion by 2020, a 54% jump from 2015.

New opportunities

l   The Chinese government is backing programs which promote the sports-for-all, with the country’s State Council targeting the size of China’s sports and fitness market to exceed RMB 5 trillion in value by 2025, more than a triple of RMB 1.5 trillion 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%.

l   China issupporting the development of soccerby enhancingits performance in the sport. In addition, the hosting of theWinter Olympicsin 2022will further promote winter sports domestically.

l   Traditional wellness practices are being combined with modern popular sports, with people now paying more attention to their health and athleticperformance, which also substantially increases the demand for sportswear.

l   There is much higher demand for sportswear that is able to enhance sports performance, which means that sports participants and consumers are tending to choose sportswear based on “functionalization”, “differentiation”and“premiumization”.

In light of the report’s findings, the Company believes that sports enthusiasts and sports participantsin China are taking their appearance, sports performance and sports equipment more seriously, and have precise demands about what they want. Thus, the “functionalization”, “differentiation” and “premiumization”of sportswearare not only contemporary trends, but are key factors that willdetermine market share and sustainable growth. Through a full range of retail channels, ANTA Sports will continue to enhance the function, quality, design and innovation of its products in the future while uniquely positioning its different brands and maintaining its leadership in innovation and research and development capabilities. At the same time, it will sustain its high  value-for-money advantage so as to satisfy the needs of different customers in different market segments by introducing the best products yet affordable prices. 

James Zheng said, “We arecontinuously implementing its ‘Single-focus’, ‘Multi-brand’, and ‘Omni channel’ strategy. Ourbrands utilize online and offline retail channels in order to cover all market segments, from mass to high-end consumers.

Wewill further strengthenthe consumer experience and fosterthe innovation, function, design and quality of ourproducts according to the general shift in the market towards premiumization and efforts to adapt to market demands.

This will trigger the growth potential of ourbrands and increase their market share.”

Please refer to the URL below for the full report:

https://www.corporatenetwork.com/media/1635/ecn-china-gets-its-game-on-201701.pdf

Photo:ANTA cooperates with the Economist to publish the research report “China gets its game on: The emerging power of China’s sports and fitness industry”

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