The transition of leadership to the younger generation has become an unstoppable trend across major corporations worldwideRecently, FILA China confirmed through an announcement that Yao Weixiong will be retiring from his role as CEO of Anta Group’s Fashion Sports BrandsHe will remain with the company as a vice president, overseeing the daily management and operations of the group's fashion industry projectsThe leadership mantle will be passed to Jiang Yan, a talented young executive cultivated by Anta, who will take full responsibility for the management of the fashion sports brand group.

Anta Group expressed immense gratitude and high regard for Yao Weixiong’s contributions in its statementSince 2010, Yao has been instrumental in overseeing the FILA brand's operations in Greater China, guiding the brand to become a benchmark in the fashion sports sector and listing among China's top five sports brandsAnta has unequivocally recognized Yao's outstanding contributions to both the company and the industry.

Yao Weixiong has been a dynamic force behind FILA, and his capabilities shine through when one examines his role in revitalizing the brandSince 2009, when Anta acquired FILA's Greater China operations for approximately 460 million RMB, FILA has undergone a transformative journey within the Chinese marketUnder Yao's stewardship, FILA has flourished, propelling Anta to become the leading sportswear corporation in China and among the top three globally.

The success story is particularly evident in the company’s financial performanceBy 2018, FILA's revenue had soared to 10 billion RMB and reached 20 billion RMB by 2021. Anta's most recent financial report highlighted that FILA recorded a staggering 25.1 billion RMB in revenue in the previous year, marking a 16.6% year-on-year increase with a net profit of 6.92 billion RMB, a remarkable rise of 60.8% from the previous year.

From a troubled beginning to now accounting for more than half of Anta Group's revenue, FILA has emerged as the cash cow of the company's various brands

Advertisements

These achievements are a testament to Yao Weixiong's exceptional leadership.

Upon joining Anta, FILA adopted a direct sales model that, while costly, ensured brand integrity and efficiencyIn terms of design, the focus shifted toward a sporty yet fashionable aesthetic by integrating international design teams, differentiating from Anta's emphasis on the mainstream sports market.

FILA has successfully diversified its product range, catering to both the fashion sports and professional sports spheresIn recent years, products like FILA's claw sneakers and dad shoes have become highly sought-after by young consumers, with annual sales exceeding one million pairsTo reinforce its "fashion" label, FILA even signed actress Yang Mi as the brand ambassadorOn the professional front, FILA has developed lines focused on tennis and golf, positioning it in the competitive landscape of specialized sports.

Despite this remarkable growth trajectory, FILA faces new anxieties amid this leadership transitionParticularly noticeable was the decline experienced in 2022—the first drop in performance after years of continuous growthAlthough recovery has since occurred, there is a sense that FILA may be nearing a ceiling, with growth rates leveling off.

Anta Group recently unveiled its projected performance for 2024. Within this, the official announcement confirmed that the leading brand Anta is expected to achieve a high single-digit growth rate (between 7% and 9%) in retail sales compared to 2023. FILA's revenue is projected to grow by a mid-single-digit percent (4% to 6%), while Anta's other brands are projected to achieve a remarkable 40-45% growth in retail sales.

While FILA’s overall performance and standing within the group appears stable, it no longer holds the title of the newest darling of the groupSeveral recently acquired brands by Anta have exhibited explosive growth, akin to FILA's early yearsAlthough various brands are vying for dominance in different markets, the emergence of these "new kids on the block" could incite a sense of anxiety for FILA, which is grappling with stagnant growth rates.

The most recent trend shifts show a growing consumer interest in outdoor sports over fashion sports, adding another layer of challenge for FILA to navigate

Advertisements

Advertisements

Advertisements

Advertisements