Store Visit; Fascinating Store Layouts, Enhanced Client Interactions And Upgraded Product Mix
We visited several Anta stores in Beijing, and found that Anta has been upgrading its store formats with more fascinating store layouts that strengthen the brand features. Other brands have been enhancing their interactions with customers and upgrading the product mix to cater to customers’ demand, which we think will improve customer stickiness, attract potential customers and raise the ticket size. Maintain BUY and target price of HK$128.00.
We visited several Anta stores on 18 October in Beijing. Key takeaways are as follows.
- Fascinating store layouts to strengthen brand equity. While maintaining its mass-market positioning, Anta Sports (Anta) will continue to conduct brand upgrade, with products being empowered by top-notch brand resources, especially Olympics elements. In Anta’s first Palace store, a three-storey building located in Wangfujing (core area in Beijing), with a total GFA of 460 sqm, there are specific zones to display Olympic-related items, such as Olympic award uniform, or decorations of professional sports, which is consistent with Anta’s identity of the official sportswear supplier for the International Olympic Committee for 2024-27, and its target to achieve >30% growth of Olympics products in 2024. Also, Anta plans to introduce different store formats to boost its footwear. It just opened its first SNEAKERVERSE store in Beijing, displaying comprehensive footwear series, and is advertising the upcoming co-branded series with Kyrie Irving to be launched in Mar 24.
- Customer interactions are enhanced. Premium outdoor brands have been enhancing their interactions with customers, by inviting their members to enjoy free events or organising interesting activities. For example, Descente’s gold members have access to the one-on-one snowboarding classes provided by the stores for free, and Salomon organises outdoor and social activities such as frisbee or city-run frequently. In our view, these activities are good advertising for the brands, not only to strengthen the brand features, but also enhance customer stickiness and attract potential customers.
- Increasing attention on outdoor and functional products. Although Anta and Fila are not professional outdoor brands, they have been launching more outdoor SKUs to cater to customers’ growing demand for outdoor products, especially Fila Kids, of which almost all the new products this year are outdoor products. Furthermore, Anta aims to introduce more professional and functional products, which are of higher prices than ordinary products and can boost Anta’s ticket size (expects Rmb670-680 in 2023 and aims to hit Rmb800 in 2024).