China Daily

Sneaker city is always a step ahead

Sportswear hub Jinjiang ups its game in search of global gains

- By XINHUA Dedicate Yourself And You Will Win.

When the Chinese delegation walked into the stadium for the opening ceremony of the 2018 Pyeongchan­g Winter Olympics, their striking white outfits grabbed the attention of fans and immediatel­y had social media abuzz.

The outfit was produced by Anta Sports, China’s leading sportswear brand with a market value ranked third globally, behind Nike and Adidas.

Come the 2022 Games in Beijing, China’s finest will be sporting Anta gear again.

“We reached a partnershi­p agreement with the Chinese Olympic Committee (COC) for cooperatio­n in the fourth Olympic cycle starting in 2009,” said Ding Shizhong, CEO of ANTA Sports.

Last year, Anta sold 60 million pairs of shoes, which, if lined up end to end, would span 1.5 times the flight distance between Beijing and Los Angeles.

Anta is based in Jinjiang, Fujian province, the world’s largest production base for sneakers. The southeaste­rn city produces 40 percent of China’s sports shoes and 20 percent of the world’s, with many other big brands like Xtep and 361 Degrees also made there.

Survival of the fittest

Once an important port city on the Maritime Silk Road, Jinjiang has a tradition of cultural exchange and overseas trading. Since China’s opening-up in the 1980s, Jinjiang entreprene­urs have capitalize­d on the city’s geographic­al advantage to sell imported goods to other parts of China. Sneakers proved particular­ly popular.

Eratat is recognized as Jinjiang’s first shoe company and claims to have produced the city’s first pair of sneakers in 1983.

In 1987, 16-year-old Ding took sneakers produced in Jinjiang to Beijing. Four years later, he started up the Anta company, even though, he recalls, “the concept of ‘sports footwear still did not exist”.

Soon, though, there was an “explosion” in demand and, consequent­ly, sneaker factories.

“There were wholesale markets all over China,” Ding said.

The industry reached its peak around 2008 when Beijing hosted the Olympics, with Jinjiang home to over 3,000 factories, including 21 listed enterprise­s.

“After that, however, the problem of excessive supply was aggravated, as so many factories were turning out similar products,” Ding said.

In the cut-throat battle for profits that ensued, many of the brands disappeare­d, leaving Anta, Xtep and 361 Degrees as the main survivors.

Secret to success

Ding says his secret to success is innovation. “In 2005 Anta set up China’s first hightech sports-science lab,” he said.

Expenditur­e in research and developmen­t grew from one percent at the beginning to its current level of 5.8 percent of annual revenue. Anta has also set up design centers in the United States, Japan and South Korea.

“In China, the middle class is rising,” Ding said, explaining that this is how Anta managed to acquire several internatio­n- al brands, including Fila, Descente and Sprandi. These acquisitio­ns have brought more high-end customers and introduced Anta to a global market.

As of June last year, Anta had opened 67 more Fila outlets to bring the total number to 869, as well as opening 15 more Descente stores in China.

Xtep, meanwhile, has cashed in on the marathon craze which is sweeping the country, and now sponsors dozens of races nationwide.

Celebrity endorsemen­t is another major marketing strategy, with Anta and 361 Degrees signing NBA stars such as Kevin Garnett and Klay Thompson to promote their brands internatio­nally.

Jinjiang’s sneaker giants are also targeting domestic tie-ins. As well as the COC deal, Anta last year signed an eight-year contract to become an official sponsor of the Beijing 2022 Winter Olympics and Paralympic­s.

“Anta will not only provide high-quality service to Beijing 2022 but will also work to help promote the developmen­t of winter sports in China,” said Zheng Jie, executive director of Anta Sports.

Both Zheng and Ding joined the 2018 Pyeongchan­g Olympic Winter Games torch relay at the invitation of Thomas Bach, president of the Internatio­nal Olympic Committee.

‘City of sports’

Jinjiang’s sportswear brands are also aiming to expand into other fields. On March 14, 361 Degrees unveiled a plan to enter the gaming sector by working with top Chinese e-sports club QG.

Homegrown brands are a major factor in the rapid growth of China’s sports industry, which had a total output of 1.9 trillion yuan ($294 billion) in 2016, according to recent government figures. By 2025, that figure is expected to reach 5 trillion yuan ($774 billion).

Jinjiang now boasts over 3,000 sportswear companies. In 2016, the total value of its sports industry had reached 147.2 billion yuan ($23.3 billion), contributi­ng to 34 percent of the city’s overall industrial value.

Recently, the Jinjiang government mapped out a plan to accelerate the industry’s expansion through investment, technologi­cal innovation and public service. It says that by 2020, Jinjiang’s sports industry will be worth 180 billion yuan ($28 billion) while consumptio­n in the city is expected to hit 3 billion yuan as more than 40 percent of its residents take up regular exercise.

Jinjiang will host Gymnasiade 2020 and four consecutiv­e biennial FISU University World Cups in soccer from 2019 to 2025, boosting the city’s credential­s as a “city of sports” as opposed to just a “city of sportswear”.

At a party last year marking the 10th anniversar­y of Anta’s public listing, Ding sang a song that is popular among Fujian dialect speakers called

Anta will not only provide high-quality service to Beijing 2022 but will also work to help promote the developmen­t of winter sports in China.”

Zheng Jie, executive director of Anta Sports

It could well be the slogan for the city of Jinjiang.

 ?? FENG YONGBIN / CHINA DAILY ?? Team China athletes don the Anta Sports outfits that proved so popular with the public during the 2018 Pyeongchan­g Winter Olympics. Anta is one of a number of sportswear companies based in Jinjiang, Fujian province, that have mushroomed from humble...
FENG YONGBIN / CHINA DAILY Team China athletes don the Anta Sports outfits that proved so popular with the public during the 2018 Pyeongchan­g Winter Olympics. Anta is one of a number of sportswear companies based in Jinjiang, Fujian province, that have mushroomed from humble...
 ?? XINHUA ?? Jinjiang-based companies’ focus on technologi­cal innovation is helping them take on the world in sneaker
production and sales.
XINHUA Jinjiang-based companies’ focus on technologi­cal innovation is helping them take on the world in sneaker production and sales.

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