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ANTA Cooperates with The Economist to Publish China Sports Market Research Report
“Functionalization, Differentiation, Premiumization” Are Key to Success in Sportswear Industry

(Hong Kong, 12 January 2017) ANTA Sports Products Limited (“ANTA Sports” or “the Company”, stock code: 2020), a leading sportswear brand in China, is pleased to 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.

As a leading sportswear company in China, ANTA Sports has always paid close attention to the growth and development of the Chinese sports market. James Zheng, Executive Director at ANTA Sports and Brand President of ANTA, said, “This independent research, along with the report’s discussion with senior management and experts in the industry, will help policymakers, industry players, sports lovers and the public to gain more detailed understanding of the latest developments in China’s sports market from a macro perspective, as well as revealing the market’s future landscape and opportunities. It will also serve as an important point of reference for the industry and the community. It is ANTA Sports’ hope that the report will generate more interest in China’s sports market and initiate discussions on its development. ”

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

  • Chinese economic growth is expected to slowdown, but individual consumption growth will continue to outpace the GDP growth.
  • 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 outnumber those below 40 years-old by almost 40% in 2030.
  • 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.
  • 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.
  • It is estimated that the sports footwear and apparel market will see strong growth in the future. According to market source, sportswear sales will reach RMB 254 billion by 2020, a 54% jump from 2015.


New opportunities

  • 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%.
  • China is supporting the development of soccer by enhancing its performance in the sport. In addition, the hosting of the Winter Olympics in 2022 will further promote winter sports domestically.
  • Traditional wellness practices are being combined with modern popular sports, with people now paying more attention to their health and athletic performance, which also substantially increases the demand for sportswear.
  • 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 participants in 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 sportswear are not only contemporary trends, but are key factors that will determine 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 continued, “We are continuously implementing its ‘Single-focus’, ‘Multi-brand’, and ‘Omni channel’ strategy. Our brands utilize online and offline retail channels in order to cover all market segments, from mass to high-end consumers.

We will further strengthen the consumer experience and foster the innovation, function, design and quality of our products according to the general shift in the market towards premiumization and efforts to adapt to market demands.

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

Please refer to the URL below for the full report:
English version: https://www.corporatenetwork.com/media/1635/ecn-china-gets-its-game-on-201701.pdf
Chinese version: http://ir.anta.com/attachment/20170919.pdf


Photo 1: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”


Photo 2:(From left to right) Rob Koepp, Director at ECN, Erick Haskell, Managing Director, Greater China at Under Armour; James Zheng, Executive Director at ANTA Sports and Brand President of ANTA and Justin Downes, President at IMG Ski Resort Management

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About the Economist Corporate Network

The Economist Corporate Network is The Economist Group’s advisory service for senior executives seeking to better understand the economic and business environments of key global markets.

Delivering independent, thought-provoking content, The Economist Corporate Network provides clients with the information, insight, and interaction that supports better-informed strategies and decisions. The Network is led by experts with in-depth knowledge of the geographies and markets they cover. Its membership-based operations expand across Asia, the Middle East, and Africa.

Through a distinctive blend of interactive conferences, specially designed events, C-suite discussions, member briefings, and high-calibre research, The Economist Corporate Network delivers a range of macro (global, regional, national, territorial) as well as industry-focused analysis on current and forecast trends.


 
About ANTA Sports Products Limited

Established in 1994 and listed on the Main Board of Hong Kong Stock Exchange in 2007, ANTA Sports Products Limited (stock code: 2020.HK) is one of the leading sportswear management enterprise in China. For many years, we are principally engaged in the design, development, manufacturing and marketing of ANTA sportswear series to provide professional sporting goods to the mass market. Our professional sportswear includes sports shoes, apparel and accessories. In recent years, we started moving full steam ahead on the strategy of “Single-focus, Multi-brand, and Omni-channel” to deepen our footprint in the sportswear market with a vibrant brand portfolio, including ANTA, ANTA KIDS, FILA, FILA KIDS, Descente and NBA, seizing every opportunity arose in all important retail channels as a result of the successful Omni-channel strategy to unlock the potential of mass and high-end markets in China. By integrating various resources, including sponsorship and endorsement, advertising and promotional campaigns, corporate social responsibility initiatives, professional store image and high quality, value-for-money merchandise, we strive to reinforce the image of our brands and the level of brand association in the minds of our customers. Our goal is to become the nation’s top sportswear management enterprise with the best brand reputation and largest market share in China, and a respectable and sustainable world-class sportswear company in the long run.

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For further information, please contact:

ANTA Sports Products Limited
Investor Relations Department
Tel:     (852) 2116-1660
Fax:     (852) 2116-1590
Email:    ir@anta.com.hk
URL:    http://ir.anta.com

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Tel:     (852) 3103 0110/ (852) 3103 0128
Email:     antasports@citigate.com.hk