China Merchants Securities released a research report stating that Anta Sports (02020) is still the first choice for the sportswear industry. Its brands cover high-end, outdoor and mass markets, so the group is the company that can seize market growth opportunities the most among domestic sportswear brand companies. The bank gave it a target price of HK$99.8, and the rating was “increased.” In addition, the running business of TEP International (01368) should also enable it to achieve higher growth than the industry, with a target price of HK$6.6, with a rating of “gain”; while before diversification of the product line is achieved, Li Ning (02331)'s growth will slow down. The target price is HK$25.6, with a rating of “gain”.
The report points out that differences in growth rates between mainstream sportswear brands and outdoor brands confirm the shift in consumer demand. Outdoor products are generally more expensive than traditional mainstream sportswear products, highlighting that low prices are not necessarily a major factor in growth. Instead, what is more critical is the price/performance ratio of the product, that is, launching the right product at the right price. By launching low-priced versions of popular high-priced products, adidas may hope to provide consumers with more cost-effective options. Similarly, CHANEL may believe that even raising prices will not have a negative impact on demand.