Chinese sportswear maker Anta Sports Products reports record earnings for last year, thanks to the Rio de Janeiro Olympic Games.
It says the games reinvigorated sports enthusiasm, triggering higher attendance for recreational sports across a wide range of age groups and cultures.
Net profit leaped 16.9 per cent year-on-year to 2.39 billion yuan (US$347 million), while revenues were up 20 per cent to 13.35 billion yuan.
China’s drive for healthier lifestyles has also helped make the nation’s athletics goods sector immune to the cooling economic growth, reports the South China Morning Post.
Global researcher Economist Corporate Network forecasts China’s sportswear market to account for 3 per cent of the country’s GDP by 2025 – equivalent to the current level for Korea and the US. With support from the central government, the industry could balloon to 5 trillion yuan annually by 2025.
“The next 10 years will see the sports shoes and apparel markets expand, mainly driven by demand from the middle to mid-upper classes as their spending continues to see significant increase,” says Anta chairman Ding Shizhong. He sees running, indoor training, basketball, soccer and winter sports as recreational activities with the brightest prospects.

Sponsorships

A record 2.79 million people in China took part in marathons last year, an 86 per cent surge from 2015, according to the Chinese Athletic Association. Anta’s running shoes and shirts have lower price tags than global labels Adidas and Nike, which have the biggest market share in China.
Anta has been pouring millions of dollars into sponsorships and advertising. In 2015, the company signed American professional basketball player Klay Thompson to a multi-year endorsement deal.
The Fujian-based company is also the official partner of the Chinese Olympic Committee, having outfitted the national teams for the London and Rio Olympics.
Anta had 8860 self-branded stores at the end of last year, up from 8510 locations at the end of June. The company aims to grow its retail network in China to around 9000 by the end of this year.
Anta has also benefited from its Greater China rights to Italian sports fashion brand Fila, while ski garments and equipment is another growth area thanks to the rising popularity of the sport among China’s newly affluent. Anta teamed up with Japanese outdoor equipment maker Descente last year in an effort to jointly promote their brands in China.