Changpeng Wan
Key Insights:
- Anta Sports transformed from a domestic player to the world’s third-largest sportswear group through strategic acquisitions including FILA and Amer Sports
- Founders Ding Shizhong (丁世忠) and Ding Shijia (丁世家) saw personal wealth decline by 459.6 billion yuan between 2021-2025 despite corporate expansion
- Underlying challenges include slowing revenue growth, declining profit margins, and integration difficulties across 20+ brands
- The company faces significant hurdles in establishing its core Anta brand internationally against Nike and Adidas
- Financial pressures mount with cash reserves down 25% and debt increasing 114% year-over-year
The Acquisition Engine Behind Anta’s Global Rise
Anta Sports has rewritten the playbook for Chinese corporate growth through an aggressive acquisition strategy. What began in 2009 with the distressed purchase of FILA’s China rights for HK$600 million evolved into a global shopping spree. The company’s transformation from domestic footwear manufacturer to the world’s third-largest sportswear group (after Nike and Adidas) exemplifies this calculated expansion through Anta’s acquisition strategy and wealth shrinkage.
The FILA Turnaround Masterclass
Anta’s first major acquisition seemed questionable initially. FILA was hemorrhaging HK$39 million annually with just 50 stores when Ding Shizhong (丁世忠) acquired it. His decisive actions became textbook M&A strategy:
- Replaced Italian management with local executive Yao Weixiong
- Repositioned from professional sports to premium sportswear
- Targeted 35-45 year-old urban professionals
- Avoided direct competition with Nike in core athletic categories
The results stunned the industry: FILA’s revenue exploded from near-zero to ¥21.8 billion by 2021, contributing over 50% of group revenue. By 2024, its store count mushroomed to 2,000 locations nationwide.
Building a Brand Portfolio Powerhouse
Following FILA’s success, Anta accelerated acquisitions through Anta’s acquisition strategy and wealth shrinkage initiatives:
- 2015: Acquired British footwear brand Sprandi
- 2016: Formed joint venture with Japanese ski specialist Descente
- 2017: Added Korean outdoor brand Kolon Sport
- 2019: Led consortium’s €4.6 billion buyout of Amer Sports (Arc’teryx, Salomon)
- 2024: Purchased German outdoor giant Jack Wolfskin for $290 million
This carefully curated portfolio now spans from premium outdoor (Arc’teryx) to mass-market sportswear (Anta mainline), creating what management calls “full-scenario coverage.” The 2024 Amer Sports IPO marked a milestone in Anta’s acquisition strategy and wealth shrinkage journey, creating a publicly-traded vehicle for global expansion.
The Wealth Paradox: Billions Lost Amid Corporate Success
Despite Anta’s transformation into a sportswear behemoth, controlling shareholders Ding Shizhong (丁世忠) and Ding Shijia (丁世家) experienced a dramatic reversal of fortune. According to New Wealth Magazine’s 500 Richest List:
- 2021 peak wealth: ¥116.97 billion (US$16.2 billion)
- 2025 wealth: ¥71.01 billion (US$9.8 billion)
- Four-year decline: ¥45.96 billion (US$6.3 billion)
This 39% wealth evaporation represents one of China’s most significant billionaire wealth contractions, directly contrasting with corporate achievements through Anta’s acquisition strategy and wealth shrinkage.
From Workshop to Wall Street
The Ding brothers’ journey began humbly in the 1980s when their father Ding Hemu started a small shoe workshop in Fujian. After dropping out of school, Ding Shizhong joined the family business, laying foundations for what would become Anta (福建) Footwear in the 1990s. Their 2007 Hong Kong IPO (stock code: 2020.HK) marked the beginning of institutional recognition.
The Olympic Connection Unravels
A crucial element in Anta’s rise was its 16-year partnership as official sportswear provider to the Chinese Olympic Committee (2009-2024). This relationship collapsed in 2025 when Li Ning secured the sponsorship through 2028. The loss represents both financial and symbolic damage – removing Anta’s most visible platform just as growth challenges mounted.
Cracks in the Foundation: Anta’s Hidden Challenges
Beneath the surface of Anta’s acquisition strategy and wealth shrinkage lie structural vulnerabilities that explain the Ding brothers’ declining fortunes:
Financial Warning Signs
Anta’s 2024 results revealed concerning trends:
- Revenue growth slowed to 13.58% – lowest since 2021
- Gross margins declined across all brands: Anta (54.5%, -0.4pp), FILA (67.8%, -1.2pp), others (72.2%, -0.7pp)
- Cash reserves plummeted 25% year-over-year to ¥11.39 billion
- Short-term debt surged 114.79% to ¥8.58 billion
These metrics suggest Anta’s acquisition strategy and wealth shrinkage cycle may be reaching diminishing returns as debt-funded purchases strain finances.
The Integration Challenge
Operating over 20 brands creates complex operational friction:
- Channel conflicts between premium (Arc’teryx) and mass-market (Anta) brands
- Marketing budget allocation favoring international acquisitions
- Fragmented supply chains preventing LVMH-style synergies
- Separate IT systems limiting customer data integration
Unlike luxury conglomerates that share back-end infrastructure, Anta’s brands operate independently – increasing costs and reducing potential scale advantages from Anta’s acquisition strategy and wealth shrinkage approach.
Global Ambitions Meet Brand Recognition Realities
Despite owning internationally recognized labels like Salomon and Arc’teryx, Anta’s core brand struggles for global relevance. The company faces fundamental challenges in its overseas expansion:
- Brand recognition gap: Anta scores below 15% awareness in key Western markets versus Nike’s 97%
- Positioning confusion: Premium acquisitions overshadow the value-oriented main brand
- Limited distribution: Overseas presence concentrated in Southeast Asia
While Amer Sports’ IPO provided capital for global expansion, it hasn’t resolved the fundamental challenge of establishing Anta as a standalone global brand. This recognition deficit represents the next frontier in Anta’s acquisition strategy and wealth shrinkage journey.
The Path Forward: Sustainable Growth Strategies
To reverse the wealth erosion trend and ensure long-term competitiveness, Anta must address several strategic imperatives:
Portfolio Rationalization
With brands spanning multiple price points and categories, Anta should consider:
- Divesting overlapping or underperforming labels
- Creating clearer brand architecture like LVMH’s luxury hierarchy
- Developing shared service platforms for procurement and logistics
Debt Management and Cash Conservation
The company’s financial health requires:
- Pausing major acquisitions until debt ratios improve
- Extending debt maturities to reduce refinancing risk
- Monetizing non-core assets like real estate holdings
Building Anta’s Global Identity
Beyond owning international brands, Anta must develop its own global narrative:
- Leveraging Olympic heritage through athlete sponsorships
- Developing technology-focused product innovations
- Creating culturally relevant designs for Western consumers
The recent Reebok acquisition rumors – while unconfirmed – suggest Anta recognizes the need for stronger Western brand assets. However, adding another brand would exacerbate existing integration challenges within Anta’s acquisition strategy and wealth shrinkage model.
Anta’s journey demonstrates both the transformative power and inherent risks of acquisition-led growth. While the company successfully built a sportswear empire, the Ding brothers’ significant wealth decline reveals underlying vulnerabilities in the model. For Anta to achieve sustainable global leadership and reverse its founders’ fortunes, it must now master the delicate balance between portfolio expansion and operational excellence. The next phase demands organic brand building and integration prowess equal to its acquisition ambition.
What lessons can other Chinese companies draw from Anta’s experience? Share your perspective on acquisition-led growth strategies in the comments.
