Xin Lang Cai Jing·2025-09-01 07:20Core Viewpoint - This year marks a significant year for Anta with aggressive acquisition activities, including the purchase of JACK WOLFSKIN and investment in MUSINSA China, raising questions about its strategic focus on sports [1][2]. Group 1: Acquisition Strategy - Anta's CEO, Ding Shizhong, emphasized that acquisitions are the answer to three strategic questions posed by the market: the necessity of Anta, how to deepen its multi-brand differentiation strategy, and how to create shareholder value through optimal capital allocation [2][4]. - The company has pursued multiple acquisitions this year, including JACK WOLFSKIN and MUSINSA China, with rumors of potential acquisitions of Reebok, Puma, and Canada Goose, indicating a more aggressive approach compared to past strategies [4][7]. - Anta's acquisition of JACK WOLFSKIN for $290 million aims to strengthen its outdoor segment and leverage the brand's existing 451 stores primarily in Europe and Asia [10]. Group 2: Global Expansion Challenges - Anta faces significant challenges in its global expansion efforts, particularly in Southeast Asia, where it aims to achieve $1.5 billion in revenue by 2028, but has yet to make substantial progress [5][11]. - The company currently operates 249 overseas stores, which is only 2% of its total 13,000 stores, indicating a slow pace of international growth [12][19]. - Anta's overseas revenue contribution remains low, with estimates suggesting that its overseas stores generate only about $1 million in revenue each [13]. Group 3: Competitive Pressure - Anta's main brand is under pressure from Li Ning, which has secured a partnership with the Chinese sports delegation for the 2025-2028 period, raising concerns about Anta's competitive position [6][23]. - Despite Anta's overall revenue exceeding 100 billion RMB, the company lacks a standout brand, with its main brand generating 16.95 billion RMB and FILA at 14.18 billion RMB, showing no significant gap compared to Li Ning's 14.8 billion RMB [20][22]. - FILA, once a cash cow for Anta, has faced challenges, including negative growth in 2022 and being the only brand within Anta's portfolio to report a decline in the third quarter of 2024 [26][27].