FILA benefits from Zheng Qinwen's dividend

Author | Wang Xiaojuan

Editor | Zhou Zhiyu

The Olympics have become a dynamic feast this summer. Along with the numerous victories on the field, athletes have also ignited many brands.

Among the many champions, tennis player Zheng Qinwen has caused a surge in various peripheral searches related to tennis, with even tennis skirts replacing yoga pants as a popular item this summer. On August 6th, lululemon also took advantage of the trend by launching the 2024 Tennis Club series.

Currently, mainstream sports fashion brands' stores all have tennis skirts for sale, capitalizing on this wave of Olympic dividends.

Last year, Miu Miu, favored by wealthy young women, combined the collegiate style with tennis elements to introduce items such as tennis skirts and knitted sweaters. Gucci also collaborated with Adidas to release tennis skirts. FILA's tennis skirts are a perennial bestseller.

The "Tenniscore" tennis style has been making a comeback in the past two years, and now, with the support of various events and idols, it has become even more popular, entering the daily wear of more women.

"Generation Z" female star Zendaya starred in the tennis-themed movie "Challenger," which was released in the first half of the year. She appeared in tennis-themed outfits at premieres in major cities worldwide, with even the heels of her high heels featuring tennis elements.

Interestingly, this year's Wimbledon Championships were also in high demand, with the "Debenture Seats" on the same level as the Royal Box being sold for a sky-high price of £116,000.

Elite sports like tennis are also leading a new fashion trend. FILA, a mid-to-high-end sports brand deeply connected to tennis, is reaping the benefits of this wave.

FILA has had a relationship with tennis for half a century. Founded in Italy in 1911 as a family textile business, the turning point came in the 1970s. At that time, FILA began to focus on producing sportswear, especially in the category of tennis apparel.

Starting with tennis, FILA entered a series of "elite sports" at the time, such as golf, skiing, etc., and also established a high-end fashion tone for the brand.

Subsequently, FILA gained a lot of popularity by inviting tennis stars to endorse the brand and integrating into movies.

In 1974, former Swedish tennis king Björn Borg appeared on the court wearing a navy blue collar, vertical striped FILA WHITELINE tennis polo shirt, and a classic red and blue striped headband. This image directly broke the dominance of pure white in tennis and deeply linked the FILA brand with tennis, gaining fame.

For the next half century, wherever there were tennis events, you could see FILA's presence, with many tennis players wearing FILA and stepping onto the awards podium.

Entering the new century, FILA has been one of the most common sponsors of top tennis events such as Wimbledon, the French Open, and the Australian Open. Since 2019, FILA has been the exclusive official sportswear partner of the China Open for several consecutive years However, the above is just one side of FILA. As a century-old brand, FILA has also experienced ups and downs. In the Chinese market, it has changed hands several times. First acquired by an American company, then by a Korean distributor.

In 2007, Chinese footwear giant Belle saw the potential of FILA in the Chinese market and acquired all rights of FILA in China, including research and development, production, sales, and marketing.

However, at that time, FILA was still a marginal brand in the Chinese market, with only 50 stores and losses amounting to tens of millions. Belle took over but was unable to turn the tide.

Subsequently, its current owner ANTA entered the scene and became FILA's mentor.

In 2009, ANTA acquired FILA's Greater China business for about 460 million RMB, marking the beginning of FILA's transformation in China. Due to its success with FILA, ANTA has also become the number one sports goods group in China and top three globally. The stories of these two brands have mutually contributed to each other.

After ANTA took over, FILA's performance began to soar. In 2018, FILA's revenue reached 10 billion RMB, and in 2021, it achieved 20 billion RMB in revenue. Last year, according to ANTA's financial report, FILA achieved a revenue of 25.1 billion RMB, a year-on-year increase of 16.6%, with a net profit of 6.92 billion RMB, a direct year-on-year increase of 60.8%.

From losses to contributing more than half of ANTA's group revenue, FILA has become the cash cow of ANTA's various brands.

The current achievements are also attributed to ANTA's operations.

After taking over, ANTA adopted a direct sales model for FILA, which is higher in cost but more efficient and ensures brand image. In terms of design, it pursues sports fashion, introduces international design teams, and differentiates itself from ANTA's focus on the mass sports market.

In terms of products, FILA has layouts in both fashion sports and professional sports.

In the fashion sports market, in recent years, FILA's cat claw shoes, dad shoes, and many other products have triggered a rush among many young people, with annual sales exceeding one million pairs. To highlight the "fashion" label, FILA also signed actress Yang Mi as the brand spokesperson.

In addition to deep ties with tennis, FILA is also exploring more professional sports routes. Based on its high-end brand positioning, in 2022, FILA established a golf product line division.

Currently, with increased uncertainty in the consumer environment, many high-end brands are affected. However, FILA's growth remains relatively stable and has set even bigger goals for the future.

In 2023, FILA set out its development goals for the next three years, aiming to achieve an annual compound growth rate of 10%-15% and reach sales of 40-50 billion RMB. This is undoubtedly a highly challenging goal.

However, the tennis-led fashion trend continues. This single product combines nostalgia, sports, and fashion, with great potential in the future. Data from Tmall shows that this year, the search volume for tennis skirts during the 618 shopping festival increased by 256% year-on-year, with a 160% increase in transactions Moreover, in China, this trend is just beginning to emerge. Tennis skirts are not only worn by athletes, but have also entered the daily wear of many women. The combination of sports and fashion has become the dressing pursuit of the new generation of young people, bringing more opportunities to brands such as FILA, lululemon, and Anta.

However, for these trend-setting giants, they have already started thinking about the next trend