Companies buying into sports brands often themselves sound like coaches. Anta Sports, about to become Puma’s largest shareholder with 29 per cent, is no different: it wants to help the ailing German brand get stronger and perform better. Unlike the typical coach, though, it’s Anta that wants to be the real star.
Anta boss Ding Shizhong has been clear that he doesn’t want his Hong Kong-listed group to be just the Chinese version of Nike. Judging by his current model, that means taking his own-label sportswear global while managing or being involved with brands such as Puma and outdoor wear specialist Jack Wolfskin. A successful turnaround of Puma’s fortunes in China would help his pitch.
For now, Anta’s sales are almost entirely in China, and its $10bn of revenue compares with $46bn at sportswear leader Nike. But in growth terms, it has already surpassed some of its peers. Its sales have grown on average 17 per cent a year for the past five years, with Nike managing 4 per cent. Anta’s shares have delivered a total return of 450 per cent over the past decade, according to LSEG, where the US maker of the famous swoosh returned just 19 per cent.