Anta Brand CEO Xu Yang Resigns Amidst Unmet Growth Targets and Retail Experiments
Xu Yang, CEO of the Anta brand, is stepping down due to family reasons, the company confirmed. Anta Group's executive director and co-CEO, Lai Shixian, will assume the role of acting CEO for the Anta brand, while the brand's long-term development strategy remains unchanged. Xu Yang, who previously led a successful expansion of Amer Sports' Arc'teryx business in Greater China, was appointed Anta brand CEO in early 2023 following a major organizational restructuring. His tenure aimed to achieve ambitious growth, targeting a compound annual growth rate of 10%-15% for the Anta brand between 2023 and 2026, with aspirations to surpass Nike in China by 2025. However, the brand's performance fell short of these goals. In 2024, Anta brand revenue grew 10.6% to 33.52 billion yuan, at the lower end of the target range. By early 2025, revenue growth slowed significantly to 3.7%, with slight declines in gross and operating profit margins. The first quarter of 2026 saw only single-digit growth. Xu Yang's strategy involved a significant retail experiment, aiming to differentiate online and offline channels, close underperforming stores, and increase average transaction value to over 800 yuan. This included launching new store formats and sub-brands like Anta Champion, Super Anta, and SV, with a willingness to tolerate short-term losses. These initiatives have faced challenges, with some units like SV being integrated into other departments and Super Anta scaling back expansion plans. The Anta Champion and ARENA & PALACE formats have not met expectations, and the Anta Zero concept store has had minimal revenue impact. The company's profitability still relies heavily on its core stores, and new ventures like SV and Super Anta have struggled with low efficiency and cannibalizing existing business. Furthermore, Xu Yang's less traditional approach to managing the extensive dealer network reportedly hindered reform implementation. Even the basketball segment, a former strength, did not become a new growth engine under his leadership, with initiatives like the Kyrie Irving product line facing supply chain issues and underwhelming market reception. A proposed high-value deal for the Stephen Curry contract was also reportedly halted by Anta Group chairman Ding Shizhong amidst a broader decline in the basketball shoe category.
Xu Yang's departure signals a potential shift away from aggressive retail experimentation for the Anta brand, possibly returning to a focus on core operational efficiencies and leveraging established strengths in channel depth and supply chain management. The ambitious growth targets set by Xu Yang, while indicative of a desire for brand elevation, appear to have encountered significant market and execution challenges, particularly in reconciling innovative retail formats with the existing dealer network and profitability requirements. The struggles of new ventures and the underperformance in key segments like basketball suggest that systemic integration and market adaptation are critical factors for future growth. Anta Group's overall success with other brands and its robust infrastructure highlight the complex balancing act between scaling established businesses and fostering new growth avenues, especially in an evolving consumer landscape. The company's ability to navigate these trade-offs sustainably will be key to its long-term competitive positioning.
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