Recently, Archaeopteryx's newly launched "Year of the Dragon Limited" clothing has become popular again. According to a second-hand platform, the original price of 8200 yuan Archaeopteryx "Year of the Dragon Limited" jacket has been fried to 1About 20,000 yuan.
Known as one of the "middle-class three-piece sets", Archaeopteryx is a gold-absorbing weapon for its parent company, Amalfen, in the Chinese market. Recently, Amalfen Sports officially submitted a prospectus and plans to be listed on the New York Stock Exchange. According to the prospectus, in the first three quarters of 2023, the company achieved revenue of 30$5.3 billion, gross margin of 52.22% and a net loss of 1$1.4 billion. In the first half of 2023, the overall gross profit margin of ANTA Sports was 633%。
Screenshot of Archaeopteryx's official Weibo**.
The Archaeopteryx Year of the Dragon jacket was robbed
According to Zhongxin Jingwei, on New Year's Day, 46-year-old Mr. Xing came to the Arc'teryx store in Beijing's Wangfu Central early to line up to buy the "Year of the Dragon Limited". "I came at half past six, and it took me three and a half hours to get a set, which was not easy. ”
Mr. Xing said that the reason why he often buys Archaeopteryx is that there are many types of Arc'teryx and can meet the needs of travel and work. In recent years, Archaeopteryx has also seen a more than just middle-aged people. "Every time I go to the store, I see that there are young, middle-aged and elderly consumers. ”
The store opened at 10 o'clock on the 1st, and at 10 o'clock, the 'Year of the Dragon Limited' was sold out, and there was no ** later. You can take a look at the second-hand platform. The clerk of the Arc'teryx Wangfu Central store said that the "Year of the Dragon limited" models sold in the store, including jackets and T-shirts, have long been out of stock. On a second-hand platform, I saw that the original price of 8200 yuan Archaeopteryx "Year of the Dragon Limited" jacket has been fried to 1About 20,000 yuan.
On the evening of January 10, the topic of Archaeopteryx Year of the Dragon jacket was fried to 12,000 yuan and rushed to the hot search. Someone commented, "I can't understand it at such a high level." Others questioned, "Is it really good-looking?" ”
Arc'teryx's parent company uses the IPO to pay off its debts
Although Arc'teryx has recently come out of the circle, many people are still surprised that it is a brand owned by Anta.
And just last week, Amer Sports, a non-wholly-owned subsidiary of Amer Sports Holding, a joint venture company of Anta Holdings, and the parent company of brands such as Arc'teryx, Salomon and Wilson, officially submitted a prospectus to the U.S. ** Exchange Commission, planning to list on the New York ** Stock Exchange with "AS" as ***.
*: Amalfen Sports Official Website.
It is reported that the lead underwriters of the IPO are Goldman Sachs, Bank of America, JPMorgan Chase, Morgan Stanley, Citigroup and UBS, and more than ten investment banks such as CICC, HSBC and BNP Paribas will also participate in the issuance.
In December 2022, ** reported that Amalfen Sports' major shareholder, ANTA Sports and a consortium of investors were considering listing it independently. In September last year, Amalfen Sports had secretly submitted documents for its initial public offering in the United States, with a valuation of up to US$10 billion (about 70 billion yuan).
Archaeopteryx's parent company, Amalfen Sports, was founded in 1950 and is headquartered in Helsinki, Finland. Starting out in industry, it transformed into a sports business in 1974 and now operates a comprehensive sporting goods production and marketing portfolio with 11 brands sold in more than 100 countries and more than 10,000 employees worldwide.
In 2018, Anta announced that it would acquire the entire equity of Amalfen Sports in cash with a consortium formed by other investors, including Tencent, at a rate of 40 euros per share**, a total of 4.6 billion euros (about 37.1 billion yuan). At the beginning of 2019, Ding Shizhong, chairman and CEO of Anta Group, said that this acquisition was the most important decision he had made since he started his business.
The largest acquisition in China's sporting goods industry was seen as a big gamble at the time. In the first three years of joining Anta, Amer Sports Holding was in the red until 2022, when the company's revenue was 35500 million US dollars, equivalent to 25 billion yuan, contributed 2800 million yuan in profit.
In terms of liabilities, Amalfen currently has a total debt of 81$3.8 billion, with current liabilities of about $1.4$3.5 billion, current assets of 23$600 million, cash and equivalents only 2$8.4 billion. The status quo coincides with the stated purpose of the IPO – to obtain financing to repay its debts.
Nearly 80% of Greater China's revenue comes from Arc'teryx
Although there is no money now, Amalfen is very profitable. According to its public prospectus data, the company's revenue increased by nearly 30% from $2.4 billion to $3.1 billion in the nine months ended September 30, 2023, and the gross margin increased from 49.94% to 522%。Among them, Greater China contributed 5$9.3 billion, a year-on-year increase of about 676%。
Looking back from 2020 to the third quarter of 2023, the proportion of Greater China in the business of Amalfen can be said to have increased year after year - from 83% to 194%。The company's overall revenue has also increased from 24 in three years$500 million to $35500 million US dollars, with a compound growth rate of 204%, higher than industry giants Nike and Adidas.
The Greater China market has become the focus of Arc'teryx and Amalfen Sports in recent years. As of September 2023, there are 63 Arc'teryx self-operated retail stores in Greater China, accounting for nearly half of its total global store numbers. During the period, Arc'teryx generated revenue of 4US$5.3 billion (about 3.2 billion.)500 million yuan), accounting for nearly half of the brand's global revenue, accounting for nearly eighty percent of the revenue of Amalfen Sports Greater China.
According to the prospectus, as of the end of September 2023, the number of employees in Amalfen Sports Greater China has almost doubled from about 450 in 2018 to 800; The number of Arc'teryx members in Greater China has also increased from 140,000, an increase to more than 1.7 million in September 2023. In 2022, Amalfen Sports' revenue in Greater China reached 5$2.4 billion, up from $2.4 billion in 2020$0.2 billion doubled; In the first three quarters of 2023, this number continued to increase to 5$9.3 billion.
In order to continue to achieve growth, Amalfen Sports is focusing on direct sales channels. Over the past year, both Wilson and Arc'teryx have expanded their direct operations with new brick-and-mortar stores. As of September 30, 2023, Amalfen Sports had 138 Arc'teryx stores, 114 Salomon stores and 9 Wilson stores.
According to Credit Suisse's 2022 Global Wealth Report, the number of adults with global net worth of $100,000 or more has increased from 35.8 billion increased to 6. in 20218.9 billion. There are more and more consumers who pursue high-end and high-performance, and the sports track that is closely related to health is also on the rise. For Amalfen Sports, if it can be successfully listed, it is not difficult to turn losses into profits.
Assist ANTA in its globalization
The IPO announcement was issued, and many people ridiculed that this time "China Anta" really wants to become "International Anta".
In fact, this is not just a joke, after all, "single focus, multi-brand, globalization" has always been ANTA's business strategy. Judging from its recent developments, the acquisition of Maia Active has formed a certain competitive trend with the international brand lululemon; Add English spelling to the original logo to facilitate global consumers to read the brand; Established the Southeast Asia International Business Department and set up the world's first basketball franchise store in Paragon ...... SingaporeA series of adjustments are aimed at ANTA's international focus.
The acquisition of Amalfen in 2018 is the foreshadowing laid by ANTA for today. At the investor conference in October last year, Anta said that in the next three years, Amalfen will continue to strengthen the "three major markets" of China, North America and Europe, and promote the five "1 billion euros" strategy. At present, ANTA Group and Amalfen Group have formed a "two-wheel drive" global strategic layout.
From Amalfen, Anta has gained more than just new brands that are out of the circle. With China's local brand building and operation capabilities, it is almost impossible for Archaeopteryx or Wilson, which are popular in Europe and the United States, to be born in a short period of time. The acquisition of Amalfen will help it learn from the experience of operating an international brand and promote its listing in the United States, and ANTA's main brand will also greatly benefit.
At the beginning of last year, in a series of personnel adjustments of ANTA, Xu Yang, General Manager of Arc'teryx Greater China, took over the main brand of ANTA, which is a recognition of his personal work ability and the significance of Arc'teryx to ANTA.
However, if you want to truly achieve globalization, not only a sub-brand, but also the entire enterprise and market must be globalized. In terms of corporate philosophy and talent structure, ANTA has been at the forefront of local enterprises. However, the globalization process of the main brand is still in its infancy.
Judging from Anta's 2022 performance report, the revenue data of its international business has not yet been released. Compared with the other two giants based on international business, Nike and Adidas have 18% and 10% of international business respectively.
Although the partnership with NBA superstar Irving has brought ANTA a stepping stone to the heat, the unfamiliar cultural environment will still bring many challenges to the Chinese brand, such as value recognition, brand awareness, multicultural collision and disparate consumer needs.
No matter how much Amalfen can only be assisted, Anta Group still has a long way to go if it wants to become a real "international ANTA".
*丨21st Century Business Herald (Gao Jianghong), China-Singapore Jingwei.
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This issue is edited by Li Yutong.
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