Author | Anjou Cao

Editor | Zhou Zhiyu

When the sports genes of the century-old Italian brand met the artistic charm of the Palace of Versailles, sports collided with classics and fashion in a different kind.

On April 30, FILA completed the facades of the FILA ICONA Taikoo Li flagship store in Sanlitun, inspired by the Palace of Versailles and baroque decoration. A new product in collaboration with the Palace of Versailles was also launched here, so that people in Sanlitun can also feel the charm of the Palace of Versailles, one of the top five palaces in the world.

On April 23, FILA also collaborated with the Palace of Versailles to host a big show in Paris to release the FILA GOLF x Palace of Versailles Collection Authorized Cooperation Series.

FILA hopes to use this to boost performance in the field of high-end fashion sports brands. This is also the plot of the Anta Group. It is trying to revitalize FILA, activate its new growth momentum and strengthen the “second growth curve” of revenue.

According to the plan revealed by Anta at last year's Global Investor Conference, FILA will strive to achieve a turnover of 40 to 50 billion yuan from 2024 to 2026, with a compound annual growth of 10-15%.

For FILA, this is a challenging but not unattainable goal.

Currently, FILA is speeding up the path of removing inventory and promoting sales. According to Anta's announcement, the FILA brand recorded a positive increase in the number of units in the first quarter compared to the same period last year.

Guojin Securities pointed out that, benefiting from the impact of live broadcasts and product structure improvements, FILA's treasury sales ratio in the first quarter of this year was less than 5 times, and the performance recovery momentum is strong.

In fact, since FILA China was acquired by Anta in 2009, FILA has become more and more popular in China through a series of channel and product design reforms. Not only did it take 45 years to turn a loss into a profit, but it also gradually carried Anta's revenue banner.

Financial reports show that in 2023, FILA China exceeded expectations and achieved revenue of 25.1 billion yuan, an increase of 16.6% over the previous year, contributing 40% of Anta's total revenue, helping Anta's performance reach a record high, and take the position of “the biggest sports footwear brand” in China.

Chairman of Anta's board of directors Ding Shizhong also acknowledged FILA's contribution in the 2023 financial report and said that it is seeking to improve the FILA brand.

However, it is worth noting that under the wave of international sports brands increasing their popularity in China and other domestic sports brands and speeding up overseas, Anta is facing more and more intense competition in the industry. FILA's revenue growth rate has also slowed over the past few years.

This is a battle where you don't advance or retreat. Ding Shizhong admits that 2024 is still full of challenges. Anta must not only be a leading Chinese brand, but also a world-leading multi-brand sporting goods group.

As a pillar brand of Anta and a pioneer in internationalization, how to help FILA China stand out and increase revenue growth has become a top priority in determining Anta's future.

Last year, FILA's lighthouse plan came into being. On the one hand, it added the “three elite sports” of tennis, golf, and running, and promoted the “elite sports” category through cross-border co-branding and ambassador matrices; on the other hand, it placed emphasis on e-commerce, live streaming, and social platforms, and launched or upgraded many flagship stores and image stores in first-tier cities to consolidate FILA's online and offline high-end fashion sports brand image.

Southwest Securities pointed out that as Anta's second-largest growth curve, FILA is expected to drive growth in customer unit prices and store efficiency by focusing on niche high-end categories such as golf and tennis and continuing to rectify inefficient stores, and further increase its market share.

Investment banks, including Morgan Stanley, also believe that the hosting of major sporting events such as the Paris Olympics and the European Cup this year has improved the sports fashion market. This will also be a big help for FILA to take advantage of this year.

With a keen sense of fashion trends, FILA has broken through the sports market, which has been under pressure in the past few years, and has also found its own differentiated position in the high-end sports market. Next, how to overcome capital market and industry concerns and use fashion trends to further expand the business is its new challenge.

Moving the “Palace of Versailles” to Sanlitun is just the beginning. FILA's goal is to recreate the myth of high growth and impact 50 billion yuan in three-year terminal sales. The sportswear industry, which has been dormant for a long time, may also give birth to a new “catfish”, blowing up a “whirlwind” of brand promotion and internationalization.