Industry Trends: Winter Olympics Ignites Ice And Snow Economy, And Domestic Products Rush To The Trillion Market

On February 4, the Beijing Winter Olympic Games opened grandly, with domestic brands occupying the strongest exposure. 1) The significance of Beijing Winter Olympic Games is different from that of previous games, and the attention of the events is unprecedented. As of February 14, the Chinese team has won 5 gold, 3 silver and 2 bronze medals, keeping up with the historical best record (5 gold, 2 silver and 4 copper) of the 2010 Vancouver Winter Olympic Games, and the phenomenal star athletes represented by Gu ailing have made a historic breakthrough in non-traditional advantageous events. Strong attention, high gold content, benchmarking and other elements, the Beijing Winter Olympics is bound to have a huge commercial influence. 2) The opening ceremony gathered global sports and fashion brands, and the host country made a strong appearance.

Many international sports and luxury brands such as Adidas, lululemon, Descente, Ralph Lauren and other international sports and luxury brands gathered in the opening ceremony of Beijing Winter Olympic Games, while domestic brands accounted for the highest attendance rate. Anta, as the only clothing brand among the partners of Beijing Winter Olympic Games, provides equipment for 12 Chinese national teams in 15 competitions; Peak sponsored a total of seven national teams in the opening ceremony, becoming the only Chinese national brand to gain brand identity exposure in the opening ceremony.

The Winter Olympic Games brought immediate results, and the flow of domestic product sports leaders increased significantly in January. According to the consumption observation of Spring Festival holiday released by Ali and Jingdong respectively, the sales volume of tmall skiing equipment / ice sports category increased by more than 180% / 300% from January 31 to February 4, and the transaction volume of skiing sports / ice sports goods in Jingdong increased by 322% / 430% from January 31 to February 5. On the evening of the opening ceremony on February 4, sales of down jackets in Anta tmall and Jingdong flagship stores surged, among which the Winter Olympic flag coat was sought after. The Winter Olympics and the Spring Festival cooling resonance, superimposed on the low base of the same period last year, the domestic brands represented by Anta and Li Ning increased month on month in January, returning to the comparable caliber of the Spring Festival, and also had a good year-on-year growth.

The goal of 300 million people participating in ice and snow sports has been achieved ahead of schedule, and the scale of the trillion level ice and snow industry is expected. 1) The top-level planning and high goal guidance have greatly promoted the participation rate of ice and snow sports in China. The development plan of ice and snow sports (2016-2025) puts forward the goal of "300 million people participating and trillion industrial scale" by 2025, and the National Ice and snow facilities construction plan (2016-2022) puts forward the goal of "650 skating rinks and 800 ski resorts" by 2022. 2) "Developing in the south, expanding in the West and advancing in the East" has achieved remarkable results, and the above-mentioned high goals were achieved ahead of the Beijing Winter Olympics. According to the report of the social situation and public opinion survey center of the National Bureau of statistics, from the successful bid for the Beijing Winter Olympics in 2015 to October 2021, the number of ice and snow sports participants in China has reached 350 million, and the national participation rate has reached 25%. The participation target has been completed four years ahead of schedule. 3) Beijing's Winter Olympics are booming, and the ice and snow industry is expected to maintain double-digit growth.

It is estimated that China's ice and snow industry will grow explosively to 690 billion yuan in 2021, with a compound growth rate of 15% in the past two years. Assuming that the target of 1 trillion yuan of industrial scale is maintained until 2025, it is predicted that the compound growth rate will remain above 10% in the next four years.

Chinese enterprises are actively scrambling for the ice and snow track, and the demand explosion gives birth to a new growth pole. 1) Ice and snow sports clothing track excellent, both functional and fashion attributes. The successful bid for the 2015 Beijing Winter Olympic Games has opened a time window for international brands to speed up the layout of China's market. Functional products are becoming fashionable and high-end, and the price band is constantly expanding to meet the needs of upgrading the ice and snow consumption market in China. 2) With the rise of domestic products, dividends continue, and ice and snow sports have become a new driving force. According to the statistics of Taotao, the market share of Li Ning / Anta tmall sales increased by 7 PCT / 5 pct in January 22, while that of Nike / Adidas decreased by 6 PCT / 11 PCT.

In the process of international ice and snow brands entering the Chinese market, most of them have Chinese partners behind them, which is expected to open up a new growth curve for domestic brands. For example, Anta has formed multi wheel drive, and the main brands of Anta and outdoor brand groups represented by Descente are growing rapidly; Bosden set up a new joint venture with Bogner at the end of 2021 to help focus on the Chinese market; Biyinlefen plans to open high-end sports stores independently, and will expand new categories such as ice and snow clothing.

Investment analysis: the attention of Beijing Winter Olympic Games is unprecedented. Ice and snow sports have become a new way of entertainment and leisure, driving the rapid development of China's trillion level ice and snow industry. We are optimistic about the clothing leader and actively layout the achievements of ice and snow track, which is expected to form a new growth point in the future. Benefit direction: 1) sports and functional clothing leaders benefit from the rise of domestic products, and cooperate with international ice and snow brands to open up new growth poles. It is recommended that Anta sports should pay attention to bosden, Li Ning and China; 2) Light luxury and mass clothing leaders lead the subdivision category share, and actively promote the pan ice and snow product category. Biyinlefen is recommended. It is suggested to pay attention to Hailan home and SEMA clothing.

Risk tips: under the repeated epidemic situation, the growth rate of ice and snow sports consumption is lower than expected; The competition in the new track of ice and snow sports clothing is intensifying.