FILA changes leadership in China

Author | Wang Xiaojun

Editor | Huang Yu

The younger generation taking over leadership has become an irreversible trend among major companies.

Recently, FILA China confirmed to Wall Street News that Yao Weixiong will no longer serve as the CEO of Anta Group's fashion sports brand group due to retirement, and will continue to serve as the group's vice president, responsible for the daily management and operation of the group's fashion industry projects; Jiang Yan, a young cadre cultivated by Anta Group, will succeed him as the CEO of the fashion sports brand group, fully responsible for the management of the fashion sports brand group.

In the statement, Anta Group gave high praise to Yao Weixiong.

Anta stated: "Since 2010, Yao Weixiong has been responsible for the FILA brand's business in Greater China, leading the team to build FILA into a benchmark brand in China's fashion sports sector, ranking among the top five sports brands in China. The group highly recognizes Mr. Yao Weixiong's outstanding contributions to the company and the industry."

Yao Weixiong has always been the soul of FILA, and his capabilities can be glimpsed from FILA's initial "revival."

Since 2009, when Anta acquired FILA's Greater China business for approximately 460 million yuan, FILA has undergone a transformation in China for over a decade, with Yao Weixiong as the helm. Due to the success in FILA's brand operation, Anta has become the number one sports goods group in China and one of the top three globally.

This upward trajectory is even more evident in performance. In 2018, FILA's revenue reached 10 billion yuan, and in 2021, it achieved 20 billion yuan in revenue. Last year, according to Anta's financial report, FILA achieved revenue of 25.1 billion yuan, a year-on-year increase of 16.6%, with a net profit of 6.92 billion yuan, directly increasing by 60.8% year-on-year.

From a loss when entering Anta to accounting for more than half of Anta Group's revenue, FILA has become a cash cow among Anta's brands.

The current achievements are also attributed to Yao Weixiong's leadership.

After joining Anta, FILA adopted a direct sales model that is more costly but more efficient and maintains brand image, and in design, it pursues sports fashion, introducing international design teams to differentiate 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 paw shoes, dad shoes, and many other items have sparked a buying frenzy among young people, with annual sales exceeding one million pairs. To highlight the "fashion" label, FILA has also signed actress Yang Mi as the brand ambassador. In professional sports, FILA has laid out vertical tracks in tennis, golf, and more.

However, during this transition, FILA also faces new anxieties. Especially in 2022, after years of continuous growth, FILA experienced its first decline in performance; although it later resumed growth, it seems to have hit a ceiling, with growth flattening.

Recently, Anta Group announced its performance for 2024.

Among them, Anta released the 2024 operating performance announcement. The announcement shows that for the entire year of 2024, the retail sales amount (calculated at retail value) of the main brand Anta achieved positive growth in the high single digits (i.e., 7% to 9%) compared to 2023; FILA's retail revenue achieved a positive growth of mid-single digits (i.e., 4% to 6%) year-on-year; while all other brands under ANTA achieved a positive growth of 40-45% year-on-year.

Although FILA's overall performance and its position within the group are solid, it is no longer the group's new favorite. Many of the new brands acquired by ANTA in recent years have experienced rapid growth similar to that of FILA back in the day.

While everyone is focusing on different tracks, the growth of the "younger generation" will also cause anxiety for FILA, which is experiencing a slowdown in performance growth. Moreover, in recent years, fashion trends have shifted from fashionable sports to outdoor sports, which is also beyond FILA's control.

The responsibility for seeking more growth, continuously creating blockbuster products, and leading trend trends will be handed over to the new successor.

It is understood that Jiang Yan has previously managed the brand management work of ANTA KIDS and FILA FUSION, achieving leading brand recognition in their respective market segments.

Currently, ANTA KIDS is expected to exceed 10 billion yuan in revenue in 2024, becoming the first children's brand in the sports industry to reach this milestone. Descente entered the high-end outdoor children's clothing market at the beginning of last year. Jiang Yan's succession may mean that FILA is also expected to make strides in FILA KIDS.

In addition, to seek greater performance growth and lead trends, FILA has also established a golf product line division in recent years, entering more professional sports tracks that can attract elite users.

Since last year, FILA has also begun upgrading its stores, opening several "V6" stores that present an aesthetic space integrating sports, fashion, culture, and individuality. This is not only about displaying and selling products but also about creating a lifestyle.

In just the first half of last year, FILA opened brand new Italian sports aesthetic image stores in several major commercial complexes across the country, including Sanlitun in Beijing, Deji Plaza in Nanjing, and Taikoo Li in Chengdu. Among them, the Sanlitun store features a Versailles Palace style, the Taikoo Li store is the world's first FILA Atelier store, and the Deji Plaza store is designed with cultural imagery from the Louvre. Many stores attracted numerous young consumers to visit, which also indicates that changes that closely follow user demands can be well-received by consumers.

Currently, new challenges continue, and predicting trend trends often requires companies to make early bets. Whether Jiang Yan can expand into new tracks while maintaining the current territory and lead FILA to new heights will require considerable effort