Anta Sports Products Limited SWOT & PESTLE

SWOT

SWOT Matrix for Anta Sports Products

Detailed SWOT Analysis of Anta Sports Products

The detailed SWOT analysis for Anta Sports Products Limited is presented below:

Strength

1. Strong Brand Portfolio constituting market-leading brands: Anta has an exceptional all-around brand portfolio such as FILA, DESCENTE, SPRANDI, KINGKOW, and KOLON SPORTS which have a strong market presence. FILA is the most known brand which is recognized globally and enjoys a good market share in the international market as well. Through brand diversity, it aims to cater to the masses as well as tap into the luxurious sportswear market. Anta mitigates risk through its multi-brand strategies. Demand for customized products is ever-increasing and evolving in the sportswear industry. To deliver according to the expectations of the customers ANTA reformed the business structure by introducing 3 segments namely: performance sports, fashion sports, and outdoor sports. The new market framework reflects the most appropriate grouping of business divisions and brands and helps accelerate synergy and incubation cycles, retail value, and globalization. ANTA became the official sporting partner of the 2022 Olympic and Paralympic Winter Games.

2. Excellent marketing and sponsorship strategies: ANTA has excellent marketing strategies through promoting products by professional athletes and Chinese celebrities. It has partnered with brands like Coca-Cola to celebrate Coca-Cola’s 133rd birthday. It produced and distributed special products for this occasion along with other crossover products like NASA, Marvel, Dragon Ball Super, etc. This initiative received an overwhelming response from the customers with large sales through ANTA Tmall’s flagship stores and other offline stores available. ANTA was the official sports apparel partner of COC. ANTA supported 27 Chinese national teams in winter sports, boxing, taekwondo, weightlifting, wrestling, judo, surfing, and many other such sports. ANTA has signed a contract to supply International Olympic Committee (IOC) members and staff apparel till the end of 2022. The Chinese sportswear spartan has also collaborated with a few basketball professional players, including Klay Thompson, Gordon Hayward, Luis Scola, etc to endorse ANTA’s basketball offerings and related products. ANTA in 2023 struck a five-year deal with Kyrie Irving, the famous National Basketball Association (NBA) player for Dallas Mavericks.

Weakness

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Opportunity

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Threat

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POLITICAL

1. The implication of the US-China Trade war on imports and exports of goods: In 2018, $737.1 billion worth of goods and services were exchanged with China by the US including Imports worth $557.9 billion, and exports worth $179.3 billion. So, the total trade deficit in the US, including goods and services, was about $ 378.6 billion. The US’s largest trading partner for goods is China. While the USA imports $539.5 billion in goods, exports were $120.3 billion. There has been a drastic fall in US exports of goods to China and otherwise due to the imposition of heavy duties and tariffs. In 2019, the macroeconomic environment was full of uncertainty. The market faced various challenges, including US-China trade disputes, increasing geopolitical risk, reducing financial losses, rising interest rates entering a cycle, etc., which had some impact on the market. The change in tariff rates is expected to incur losses for the US-based sporting goods firm. The US-China trade war has continued in 2022, with both countries imposing additional tariffs on each other's goods. The impact of the trade war on imports and exports of goods has been mixed. Some industries have been more affected than others. For example, the US agricultural sector has been hit hard by the trade war, while the technology sector has been less affected. The trade war has also hurt global economic growth. The International Monetary Fund (IMF) has downgraded its growth forecast for 2022, citing the trade war as one of the main reasons.

ECONOMIC

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SOCIAL

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TECHNOLOGICAL

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LEGAL

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ENVIRONMENTAL

1. International Partnership Agreement with World Wide Fund (WWF) for nature: To reduce environmental impact and to promote the textile industry the sportswear industries should form a coalition and work together with international committees such as the World Wide Fund to work towards textile development and minimizing the environmental impact of the textile industry. ANTA Sports became the flagship Chinese sportswear company to sign a deal with the World Wide Fund. It involved the development of the textile industry in water management and packaging, reducing pressure on natural resources available, instilling the principles of “Reduce, Reuse and recycle”, using degradable raw material for manufacturing of products, etc. These initiatives if applied universally would greatly help in attaining the goal of a sustainable environment.