Sports and apparel brands have also begun to cross commercial real estate, can "sports + business" become a new favorite?

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As the concept of "cross-border" has become the core driving force of development, many enterprises have begun to cross the existing industry boundaries. Commercial real estate has attracted more and more attention with its unique charm and unlimited potential, and has become a "cross-border partner" in major industries.

In this cross-border trend, there are retail giants such as IKEA and Wal-Mart, which rely on their strong brand influence and rich retail experience to create a unique shopping experience space in commercial real estate; There are also leading companies in the home furnishing industry, Red Star Macalline and Actually Home, which combine home aesthetics with the diversified formats of commercial real estate to create a one-stop place for consumers to enjoy life.

Recently, some well-known sports and apparel brands have also moved into commercial real estate. The latest crossover is the Anta Group, which has recently made a splash in the sportswear field.

Compared with the retail enterprises themselves with "field" operation experience, Anta Group's cross-border commercial real estate will be more curious, how should this retail format space be combined with its main business, especially Anta's brand?

ANTA invested RMB4 billion to redeploy its business

On September 13, ANTA Group announced that it had reached a cooperation agreement with Wuyuan Sports Park, Xiamen International Sports Complex. It is understood that ANTA Group plans to invest RMB4 billion to build the Xiamen ANTA Sports Park, which integrates operational office, innovative R&D, and sports and cultural experience, which is expected to integrate sports, commerce, hotel and office functions. ANTA Group expects to relocate some of its office functions to the Sports Park. In addition to the construction of a gymnasium, a swimming pool and a cultural center, ANTA Group also plans to build a sports and commercial district similar to Taikoo Li in Chengdu in the sports park to improve the regional commercial facilities.

From the perspective of project positioning, the project has the distinctive characteristics of a large-scale sports comprehensive project of government-enterprise cooperation. This kind of project is based on the local government's urban regional planning needs, and the main function is to provide sports venues for citizens. However, at the same time, it also hopes to play a role in integrating and extending the sports industry chain, and form diversified revenue channels through the introduction of leisure and entertainment, hotel accommodation, business office, conference and exhibition, commercial retail and other complex formats.

In fact, this is not the first time that ANTA Group has set foot in commercial real estate projects. As early as 2018, Anta spent 804 million yuan to acquire a commercial plot on the north side of Panzhong Road in West Hongqiao, Qingpu District, Shanghai. Construction of the site officially started in July 2020 and is scheduled to be completed in the second half of 2024. It will be built into the global retail headquarters of ANTA Group, covering an area of 35,000 square meters, and will be a multi-functional integrated park composed of five buildings, which will have the functions of office, retail, hotel and sports center.

The main plan of the park includes ANTA Group's modern office area, R&D and design center, international conference area, sports activity center, brand flagship store, staff restaurant, multi-functional exhibition hall, serviced apartments and other supporting commercial service facilities, and will accommodate 4,000-5,000 office personnel, of which the ANTA Sports Theme Park will also be open to the public. Although the name is the global retail headquarters of ANTA Group, it is already the standard of a commercial complex from the perspective of its business planning and construction purpose.

In addition, ANTA's headquarters in Jinjiang, Quanzhou, has also created a retail space called "ANTA 982 Creative Space". There are a number of exhibition halls in the space, showcasing ANTA's latest products and technological innovations. In order to enhance consumers' sense of participation and experience, ANTA 982 Spaces also provides free member experience programs such as rock climbing, skiing, and basketball, so that customers can enjoy the fun of sports while also experiencing the charm of the ANTA brand.

Get closer to offline consumers

For sports brand giant ANTA, Xiamen ANTA Sports Park is not only a simple offline business, but also an important reinforcement and upgrade of the offline retail system in the company's strategic layout.

In the process of successfully building a huge brand matrix through a series of large-scale M&A strategies and gradually becoming the sports brand with the highest revenue in China, ANTA is also facing the dual challenges of intensified "involution" and "hand-to-hand combat" competition. In order to continue to consolidate its market position and lead the development of the industry, ANTA urgently needs to deepen its market penetration, get closer to offline consumer groups, and establish deep and personalized connections with a wide and diverse customer group to meet the diverse needs of consumers at different levels.

Therefore, ANTA has adopted a series of innovative measures to deepen the connection between the brand and consumers. From deepening the store experience, precise market positioning, to strengthening interactive services, we have comprehensively upgraded the way brands connect with consumers.

In the past few years, ANTA has attached great importance to the DTC (direct-to-consumer) model. This strategic transformation is not only reflected in accelerating the integration of relationships with distributors and reaching consumers more directly by optimizing the channel layout, but also in the wave of self-built large-scale offline experience stores and concept stores.

The construction of the commercial complex is an important milestone for ANTA on the road to brand upgrading. This is not only an expansion of physical space, but also a manifestation of the deep integration of ANTA's brand concept, product experience and consumer lifestyle. Through the construction of commercial complexes, ANTA will provide consumers with a diversified consumption scenario integrating shopping, leisure and entertainment, further narrowing the distance between the brand and consumers.

Not only ANTA, but also in the context of increasingly fierce competition in today's retail market, well-known apparel brands such as Jiangnan Buyi and Youngor have also set their sights on commercial real estate. The layout of commercial real estate provides a broader and more flexible display platform for these brands, enabling them to create brand flagship stores, experience stores or theme parks with unique charm according to their own brand characteristics and market demand.

Through the layout of commercial real estate, these brands are able to build a comprehensive space integrating shopping, leisure and cultural experience in the city's prosperous areas or emerging business districts, so as to more directly reach and serve the majority of offline consumers. These spaces not only carry the function of selling products, but also become an important place for brand culture communication and consumer interactive experience. By hosting events, exhibitions and salons in these spaces, brands are able to build a closer and deeper emotional connection with consumers.

What's more, through the operation and management of commercial real estate, brands can have a deeper understanding of market trends and consumer needs, which provides an important reference for the adjustment of product design and marketing strategies. This flexibility based on market feedback allows brands to better adapt to market changes and maintain a competitive edge.

This trend not only marks a new exploration of the business landscape by sports and apparel brands, but also indicates that the commercial real estate industry will usher in a more diversified, innovative and competitive landscape. As brands pay more and more attention to consumer experience and interaction, commercial real estate projects also need to continuously integrate new elements to bring consumers a new shopping experience and lifestyle through innovative business models and diversified business combinations.

Can "Sports + Business" become the new favorite?

From foreign experience, it is not uncommon for large sports brands to use sports space to increase interaction with consumers. Adidas has partnered with the China Athletics Street Tour to create a track and field street experience space. Many Decathlon stores also have reserved space for user experience and sports activities. But in general, they are not "very far", and the experience space is more of an added value of sports elements.

However, in the scene of a shopping mall, the experience is the core, and shopping consumption is just an additional action to experience pleasure. Therefore, ANTA's construction of a shopping mall with a sports park as the core is a challenge for its own brand appeal and operational capabilities.

Of course, no matter how challenging it may be, it is indeed a move to please the lifestyle of young people.

With the improvement of living standards and the increase of leisure time, people's demand for sports fitness and leisure entertainment is also growing. Young people, in particular, are more focused on quality of life and health experience, and are willing to pay more for high-quality sports services and products. This market demand has provided a strong impetus for the development of the "sports + business" model.

The essence of the "sports + business" model is to rely on large-scale commercial projects, take sports as the lead, deeply integrate and integrate catering, entertainment, shopping and other industries, and form an offline consumption scene that meets the comprehensive needs of the public. This model not only enhances the attractiveness and competitiveness of commercial projects, but also provides consumers with a richer and more diversified consumption experience.

A number of successful "sports + business" projects have emerged at home and abroad. Singapore Sports City is an integrated development that integrates sports, leisure and entertainment. The project is upgraded on the basis of the original National Stadium and integrated into the KALLANG WAVE embedded shopping mall, realizing the two-wheel drive of sports and commerce.

The innovative Mall+ Super Entertainment Sports Center in United States subverts the layout of traditional shopping centers, with entertainment formats dominating (55%), far exceeding retail formats (45%), and building a large-scale complex integrating diversified functions such as shopping, entertainment, leisure, and sports. One of the highlights is the Big Snow America indoor ski park, which has a 244-meter-high, 800-foot vertical ski slope that offers 365 days a year of skiing, making it a great attraction for visitors.

SPORT SOCIETY IN DUBAI IS ALSO A MIX OF SPORT AND BUSINESS. The ground floor of the project features a large-scale multi-purpose sports complex, while the third floor is transformed into a retail space for outlets and food and beverages, demonstrating the harmonious coexistence of sports and commercial activities.

In China, with the increasing competition in retail business and the significant improvement of consumers' acceptance of sportswear, the theme of "sports +" has indeed become an important way for many businesses to enhance their differentiated competitiveness. Ningbo Zhongti City and Huaxi LIVE · Wukesong are successful examples of this trend, which provide consumers with a richer and more diversified consumption experience by integrating sports elements and commercial formats.

Ningbo China Sports City is one of the earliest projects in China to explore sports-themed shopping, leisure and cultural complexes. It has sports fashion, lifestyle boutiques, children's training, Jianghu cuisine, film and television entertainment and other formats, creating a comprehensive leisure and entertainment destination for the public. The project not only focuses on the combination of business and sports, but also is committed to promoting the popularization and development of national fitness culture. At the same time, in order to encourage more citizens to participate in national fitness activities, Ningbo China Sports City will regularly hold free open days for national fitness, and more venues and facilities will be open to the public for free.

Beijing Bloomage LIVE • Wukesong must be no stranger to everyone, but it is not only the Wukesong Gymnasium, which hosted the basketball event of the 2008 Beijing Olympic Games, but also includes M Space, HI-Park Basketball Park and other parts. At present, Wukesong Stadium has also become a comprehensive venue integrating large-scale sports events, concerts and other entertainment activities. HI-PARK is a haven for basketball lovers, offering multiple indoor and outdoor basketball courts.

With the intensification of retail business competition and the deepening of consumers' attention to health and sports, in the context of experiential consumption becoming a new direction for commercial differentiation and drainage, the model integrating sports, catering, retail and other multiple functions is becoming a new trend. The theme of "Sports+" has also become an important way for many businesses to enhance their differentiation. (This article was first published on the Titanium Media APP, author|Zhao Chenhan, editor|Fang Yu)