A Case Study Of Anta’s Continuous M&A Under The Background Of Multi Brand Strategy

Although the foundation of China’s sports industry is relatively weak,with strong support from the state and widespread attention from the public,the development of sports related industries has been rapid in recent years.In this environment,Chinese sports footwear and apparel industry shows an amazing growth rate,and the competition between companies is becoming increasingly fierce.However,as the wave of sports brought about by the 2008 Beijing Olympics gradually subsided,sports footwear and apparel companies faced an industry wide inventory crisis.Many domestic enterprises began to use a series of mergers and acquisitions to achieve leapfrog development and transformation,in order to tide over the difficulties.At present,most companies in the industry choose to rapidly expand their market through continuous mergers and acquisitions under the guidance of a multi-brand strategy.Some companies have successfully emerged from difficulties and developed well under this method.Under the background of multi-brand strategy,this thesis studies the successful cases of successive mergers and acquisitions,which is of great significance for enterprises in the industry to reasonably deploy strategic transformation.This thesis takes Anta’s continuous M&A case as the research object.Firstly introduces the research background and significance,reviews relevant literature,and elaborates the concepts of multi-brand strategy,continuous M&A and continuous M&A performance.Secondly,based on the theory of brand strategy and synergy effect,this thesis analyzes the characteristics and motivations of Anta’s continuous mergers and acquisitions.In addition,this thesis uses event study method,financial index method and EVA method to conduct in-depth analysis on the effect and performance of Anta’s successive mergers and acquisitions under the background of multi-brand strategy from the perspectives of strategic completion level,market effect,financial performance and shareholder wealth.Finally,draw a conclusion and provide suggestions for the future improvement of Anta and other enterprises in the industry.Through the research,this thesis holds that the characteristics of Anta’s continuous mergers and acquisitions under the background of multi-brand strategy are horizontal mergers and acquisitions,most of the merger objects are high-end brands,and gradually shift from Asia to the European and American markets.The motivation includes three aspects: rebranding into the first tier,increasing market share,and building collaborative incubation platform.In the aspect of effect and performance analysis,Anta’s multi-brand strategy is well completed,which is reflected in the apparent effect of brand remodeling,the obvious increase of market share and the reasonable establishment of multi-brand matrix.The short-term market effect is not good,and the initial stage of M&A is not favored by investors.In terms of financial performance,the company’s profitability and growth ability have been significantly improved,its operating capacity is good,and its debt paying ability has declined but remains stable in the forefront of the industry.In terms of shareholder wealth,EVA analysis shows that successive mergers and acquisitions create value.Based on the motivation and effect of Anta’s continuous mergers and acquisitions,this thesis draws the following enlightenments.Firstly,the pace of continuous mergers and acquisitions under the background of multi-brand strategy should be gradual.Large-scale mergers and acquisitions in the industry should be carried out cautiously.Secondly,pay attention to the complementarity between products to avoid repeated competition within private brands.Thirdly,focus on the integration between the main brand and the new brand to achieve the brand collaborative development.Lastly,attach importance to the cultivation of independent research and development ability to avoid excessive external dependence.