The expected recovery in consumer demand in the sports footwear and apparel industry has not been as enthusiastic as anticipated, and the sluggish demand continues to pose inventory pressure for all companies.
In the first half of this year, apart from Anta Sports (02020.HK) reducing its inventory turnover days from a high of 144 days to 123 days, Li Ning (02331.HK), Xtep International (01368.HK), and 361 Degrees (1361.HK) all experienced varying degrees of increase, with 361 Degrees showing the largest growth of 10 days.
Under the concerns of investors in the secondary market, the market performance of sports footwear and apparel brands can be described as dismal.
As of October 9th, Li Ning's stock price has hit a new three-year low, with a year-to-date decline of 53.03%. Anta Sports and Xtep International have also experienced year-to-date declines of 17.08% and 17.55% respectively. Among the four companies, 361 Degrees is the only one that has seen an increase in its stock price year-to-date, but it also experienced a significant drop on the day of its interim report release due to lower-than-expected dividends.
The market's concerns about sports footwear and apparel companies are evident. The common challenge for the industry now is how to maximize their strength and accumulate assets during the new inventory clearance cycle, and then return to high-speed growth during the upturn cycle.
Currently, it is relatively safe and has been validated by international giants like Nike to associate with professional sports projects. Some industry insiders have expressed to TradeWind01 that Li Ning's weaker stock performance during the market downturn may be due to its past focus on trends rather than having a strong foundation in professional sports.
On the other hand, Anta Sports has been making frequent moves this year.
In the field of professional outdoor sports, it was reported in September that Amer Sports, the parent company of Anta's subsidiary, Arc'teryx, had secretly submitted an IPO filing in the United States, with an estimated valuation of up to $10 billion. If successful, Amer Sports' market value would be comparable to Li Ning's current value.
In the popular basketball field, Anta successfully signed NBA star Kyrie Irving this year, who will serve as Anta's Chief Creative Officer and participate in the design of the personal product line.
According to information obtained from relevant sources by TradeWind01, in the competition for Irving, which involved several competitors including Adidas and Li Ning, the cooperation between Anta and Irving was a natural fit. The initial cooperation period between the two parties is about five years, but it will be renewed based on actual circumstances, with the cooperation model taking reference from AJ and Nike.
In addition, this year's Hangzhou Asian Games can also be seen as Anta's home ground. Since 2009, Anta has signed a contract with the Chinese Olympic Committee to provide professional sports equipment for the Chinese team.
On October 7th, the weightlifting athletes from the Chinese team who finished the Asian Games in Hangzhou, including Li Fabing, Chen Lijun, Liang Xiaomei, and Luo Shifang, participated in an Anta event at the &#34;China House&#34; located in the Xianghu Xiaoyao Manor in Hangzhou. The four athletes achieved excellent results in various weightlifting events at the Asian Games, winning three gold medals and one silver medal.
Weightlifting has always been a strong event for the Chinese team, even a dominant one. Sponsorship of national team's strong events has always been a battleground for sports brands. In addition to better brand exposure by placing logos, it is also a window for brands to showcase their technological strength to the public.
After all, athletes really have to wear sponsored equipment from brands to participate in competitions and achieve results.
During this Asian Games, ANTA provided athletes with the world's first weightlifting shoe with a propulsion structure design called &#34;Tandeng&#34;. ANTA stated that the new structural design of the shoe's sole provides a 25% increase in backward anti-overturning force for weightlifters during technical movements. The sole has added a unique reinforcement structure, providing strong lateral support for athletes' feet during weightlifting, with a 21% increase in lateral anti-overturning force compared to the previous generation.
The core technology used in the &#34;Tandeng&#34; weightlifting shoe is also expected to be applied to mass-market products. ANTA officials have stated that the improved version of the weightlifting shoe has become a real demand for fitness enthusiasts in gyms. Currently, ANTA's official mini-program has started selling weightlifting shoes, wrestling shoes, taekwondo training shoes, and other professional equipment used by athletes.
As consumer demands become more specialized, the possibility of new giants emerging from specific sports fields is increasing. For example, lululemon has grown in the field of yoga, while On Running has made a name for itself in the field of jogging. For established giants, actively expanding into different tracks is the current trend, and it is not surprising if fitness enthusiasts create the next lululemon.

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Laying out in different niche tracks.

Under the inventory clearance cycle, Anta "rides the wind" and strengthens its presence in the segmented market through the Asian Games.