FILA, which was once popular, is now unknown to everyone.
I still remember going out in FILA a few years ago, with the classic big logo and fashionable daddy shoes on my clothes, and walking on the street was a trend spokesperson. But now it seems that fewer people are wearing them, and the FILA stores on the side of the road are becoming more accessible.
●Source: FILA official Weibo
The most complained by consumers is that FILA is not only becoming more and more expensive, but also has no new masterpieces in recent years, and has long been less eager to buy.
As a result, FILA's performance began to stall. It is understood that since the second quarter of 2020, FILA's total revenue in ANTA Group has been decreasing, and sales in 2022 have shown negative year-on-year growth.
What happened to this trendy brand that once supported half of ANTA?
01
Hold up half of the sky
Few people may know that the FILA brand has been established for more than 100 years. After years of deep cultivation in the field of sportswear, FILA once entered the top three sports brands in the world during the highlight period, and the classic red and blue logo shape has stood in the spotlight with digital sports superstars.
However, from 2000 onwards, FILA was displaced all the way due to strategic mistakes, and was finally acquired by Anta in 2009.
At that time, the domestic sportswear market had already entered the stage of Red Sea competition, with international brands such as Adidas and Nike firmly occupying the mid-to-high-end market, and domestic brands such as Li Ning and Anta in the middle and lower reaches. While the competition is fierce, the profits are not huge. After acquiring FILA, Anta began to position it as a high-end and fashionable sports brand, seeking breakthroughs upwards.
●Source: FILA official Weibo
With the combination of ANTA and FILA, and the launch of joint models with a number of well-known designers, coupled with the endorsement of various stars, FILA has opened the road to popularity in China.
Because its daddy shoes and fisherman's hats are loved by celebrities and major Internet celebrities, these products have gradually become popular. Especially on social platforms such as Weibo and Xiaohongshu, various grass notes have emerged one after another, and FILA has also become one of the favorite brands of trendy people.
●Source: Little Red Book
Wear pieces with the FILA logo in previous years, and you can draw an equating with the trend.
I have to admit that FILA's growth rate in previous years can be described as extremely fierce. In 2021, it directly crossed the 20 billion mark, accounting for nearly 50% of ANTA's annual revenue. You know, at that time, Li Ning's annual revenue was only 22.5 billion.
Not only that, by the end of 2021, FILA had more than 2,000 stores in China. Although there is a big gap with the main brand ANTA, the profit created by a single store is 4.6 times that of the main ANTA brand, and the profit level can be seen.
●Source: FILA official Weibo
It is worth mentioning that FILA's assistance to ANTA Group has also made it the largest giant in the domestic sportswear market in the first half of 2022.
However, although many people still believe that the acquisition of FILA is one of the most correct decisions Anta has made, when Anta became more and more dependent on it, FILA suddenly began to stall.
02
It's hard to get out of the daddy shoe dilemma
In fact, FILA's performance stall is a sign of early indication.
In the first half of 2022, although the overall scale of ANTA at that time was still a well-deserved leader among domestic sports brands, the year-on-year growth rate was only 13.8%. Compared with Li Ning's 21.7% and Xtep's 37.5%, it is significantly worse.
What dragged Anta back was FILA, a high-end fashion sports brand that had been extremely dependent on in previous years.
For example, in the interim results report released by Anta last year, FILA has already experienced negative growth for the first time. Revenue fell 0.5% and operating profit fell nearly 23% year-over-year.
The official reason is mainly affected by the epidemic and weak consumption, but is this really the case?
Taking its most out-of-the-loop daddy shoes as an example, in the context of the concept of daddy shoes in China at that time, FILA pushed it into a hit. Once on par with Adidas' coconut and Nike's AJ, it was even selected as the "Shoe of the Year" by fashion magazines in 2018.
●Source: FILA official Weibo
At that time, in the mouths of consumers, the daddy shoes were full of praise, good looking, comfortable to wear, and very good fit.
It's a pity that Chengye daddy shoes, defeat also daddy shoes.
Although this series has become a popular product, in the face of the dynamic market, FILA does not seem to take the initiative to change.
"I feel that many styles are similar in length, and I am a little tired after wearing a few pairs," said some consumers. Because the designs of different series of daddy shoes are relatively similar, even the clerks of FILA offline stores are often confused.
In contrast, the entire sports footwear and clothing market is becoming more and more segmented. Brands such as ASICS focus on running, cutting-edge giants such as lululemon focus on cutting into the yoga market, and with the rise of the national tide, main brands such as Anta and Li Ning have also risen to the wind.
● Source: Lululemon's official Weibo
Nowadays, more and more consumers complain: "In the past so many years, it feels like FILA has been relying on daddy shoes to eat old books." There is no improvement, but the price is getting more and more expensive, no wonder everyone does not want to buy it. ”
There was no novelty in design, and it was not as functional as a match for those professional track brands, and FILA's positioning began to become awkward.
In this regard, some insiders believe: "Relying on the trend may be popular, but in order to achieve long-term development, it is obviously necessary to cultivate internal strength." ”
03
It's hard to find the next FILA
At the moment, FILA's efforts to reverse its decline are clearly not easy. In the face of FILA's stall, Anta will not sit still and rush to find the next FILA.
In fact, Anta has been hoping to replicate this feat through a buy-spree over the past few years.
In 2016, ANTA controlled Descente China, in 2017 it acquired the South Korean high-end mountaineering equipment brand Cologne, and by the end of 2018, ANTA joined forces with various capitals to acquire Finnish sports giant Amer Fin for 37 billion yuan, and included a number of high-end outdoor brands such as its Archaeopteryx.
●Source: Archaeopteryx official Weibo
However, it should be noted that these brands face a niche market in their segments. Even the Archaeopteryx, which was placed high hopes on by Anta and was known as one of the "three masters of the middle class", did not form a new boost at the moment, but also caused a lot of losses.
Industry insiders said: "To create a new blockbuster, you must not simply copy and paste through acquisition. Every aspect of the product's own positioning, target consumer groups and marketing methods is crucial. ”
Moreover, while Anta is buying and buying frantically, the pattern of the domestic sports shoes and clothing market is also quietly changing.
On the one hand, although ANTA is a leading domestic sports brand, the gap between ANTA and its competitors is gradually narrowing.
On the other hand, the latest rising international brands such as lululemon are trying to seize more market share. For example, lululemon's yoga pants, in addition to the fitness environment, have even become a must for many trendy people to go out on the street.
Coupled with the fact that Anta's investment in research and development was relatively small compared with its competitors, there is no doubt that Anta is quite anxious in the face of FILA gradually becoming no longer "sexy".
●Source: ANTA official website
In this regard, some insiders gave their own suggestions: instead of wanting to reshape FILA or invest in other brands, Anta should first do its own main brand.
It is worth mentioning that not long ago, the top management of ANTA just carried out a new round of reshuffle, striving to lead ANTA out of the quagmire in this situation of internal and external troubles. It's just that the final effect will be left to give us an answer.