Sportswear, Fila to grow in China after recording 3.37 billion dollars in sales

June 02, 2022

Abstract : The Italian brand owned by Anta Sports recorded significant revenues in the sportswear segment in China last year.

MILAN, June 2 (Class Editori) — Sales boom in China for Fila. According to parent company Anta Sports, the brand recorded sales of 3.37 billion dollars (equal to 3.12 billion euros at today's exchange rate) in the Asian country, driven mainly by the success of the sportswear segment.

Last June in Beijing, the Italian brand opened a mega store inside the APM mall, covering an area of more than 1,700 square meters spread over three floors. While just last month, Fila Holdings Corp.'s President and CEO Kevin Yoon explained to MFF: "It has been quite a journey since we acquired the brand almost 15 years ago and we have worked hard to get to this point. Now, with a new strategy in place, we will reach another level".

Talking about the company's financial plans, Yoon, son of Gene Yoon, stated that "the financial targets in our five-year plan reflect our desire to increase our profitability rather than the company's size. The more specific financial targets for the next five years include 4.4 trillion Korean won (about 3.27 billion euros compared to 2.8 billion euros in 2021, ed.) in consolidated revenues and an EBITDA of 15-16% (up from 13% year-on-year, ed.)".

This significant growth in the Chinese market, combined with the strength of the local supply chain, has enabled Fila to transform from a loss-making brand into a multibillion-dollar brand. A success also due to the strategic operations carried out by Anta Sports, which in 2009 acquired the rights to the Italian brand to sell in the markets of China, Hong Kong and Macao. Initiatives such as Fila's collaborations with Y/Project and VR46 Riders Academy —Valentino Rossi's brand— during 2021 have allowed the brand founded in Biella to increase its appeal in the sportswear and urbanwear sectors.

According to the market research provider Euromonitor International, retail sales revenues of the Chinese sportswear market increased from 79 billion yen (11 billion euros) in 2007 to 371.8 billion yen (52 billion euros) in 2021, and the market is expected to be worth 600 billion yen (83 billion euros) in 2026.

(Source:Class Editori)

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