Summary of Key Points
The sudden resignation of Xu Yang, the CEO of Anta Brand, is ostensibly due to family reasons, but it is likely more related to underperforming against targets (he had promised annual sales of 60 billion yuan by 2026, yet current growth has slowed down) and a conflict with the group's corporate style (Ding Shizhong prefers a low-profile approach, while Xu Yang is more high-profile and aggressive). During his tenure, he initiated three major reforms: expanding overseas, segmenting the brand (such as launching the trendy shoe line SV and the outdoor brand Anta Champion), and upgrading store formats (20 different types of stores). The overseas expansion was successful (sales doubled in Southeast Asia, and stores were opened in the United States), but the brand segmentation and channel upgrades encountered setbacks (the SV division disbanded, and the Super Anta brand stopped expanding). Anta will now return to its more mainstream positioning. The CEO position is temporarily being filled by Lai Shixian, the group's co-CEO, and this change serves as a warning for the industry's overall trend of channel upgrading.
I. Behind the Resignation: Family Reasons Are Just a Cover Story; Performance and Style Were the Real Issues
Xu Yang's departure may seem sudden, but there were signs beforehand:
- Underperforming Targets: Upon taking office, he assured that Anta's annual sales would increase by 10%-15% from 2023 to 2026, reaching 60 billion yuan by 2026. However, the poor overall industry growth made this goal difficult to achieve, and the group was dissatisfied with the results.
- Style Disagreement: Ding Shizhong prefers a low-profile approach and has criticized executives who are too vocal. Xu Yang, on the other hand, is known for being highly visible and proactive, frequently giving interviews and making bold moves. Although Ding Shizhong was aware of Xu Yang's aggressive style initially, it became a downside when expectations were not met.
Compared to Yao Weixiong, the former FILA president who was able to remain as vice president of the group after his resignation, Xu Yang's sudden departure indicates that family reasons were not the real cause; rather, he had to step down because he failed to meet his goals.
II. Review of Reform Achievements: Overseas Expansion Succeeded, but Segmentation and Channel Upgrades Failed
In his three and a half years, Xu Yang implemented three major reforms with mixed results:
- Overseas Expansion: The strategy was effective; they signed Owen as a spokesperson, opened many stores in Southeast Asia (sales doubled in the first half of 2025), and entered markets like Foot Locker in the U.S., including opening a store at Beverly Hills. The group's goal of becoming "Anta for the world" will continue.
- Brand Segmentation: Attempts to diversify the brand, such as launching SV (trendy shoes) and Anta Champion (outdoor products), were largely unsuccessful. The SV division was disbanded, and its products were integrated into other departments; some of the designers brought in from Li Ning also left, indicating these efforts did not take root.
- Channel Upgrades: The introduction of nearly 20 different store formats (e.g., Super Anta, Arena stores) aimed at targeting specific consumer groups and capturing market share was problematic due to high initial costs, a shortage of management personnel, and difficulties in managing inventory. The Super Anta brand has stopped expanding in 2026 and is now in a period of adjustment.
III. Anta's Path Forward: Returning to Its Core Positioning
Xu Yang's reforms deviated from the company's original approach, and now Anta needs to correct this:
- Original Strengths: Anta has always been known for its affordability, with a gross margin exceeding 53% (higher than Nike and Li Ning), making it a profitable core business. However, Xu Yang's attempt to move towards a more premium image by adopting strategies similar to Asics' direct-sales model confused consumers.
- Return to the Mainstream: The group needs the Anta brand to maintain its mainstream position and support other international brands (such as Asics and Salomon). Stopping the expansion of Super Anta and re-establishing product categories is a step back towards a more affordable and efficient approach.
IV. Industry Implications: Anta's Adjustment Signals a Caution for Other Brands
Anta serves as a benchmark for the industry, and other brands have followed its lead:
- Competitors Copying Anta: Companies like 361° have opened over 100 "Super Product Stores," and Li Ning is testing new store formats. However, with Anta's Super Anta initiative being halted, it becomes clear that more channel upgrades do not necessarily equate to better results; costs and effectiveness must be carefully considered.
- Need for Caution in the Next Phase: Other brands need to reflect on whether opening so many new stores truly attracts customers and avoids waste of resources. They should find a model that suits their needs to prevent costly failures.
V. The Group's Perspective: Anta as a Pillar of Stability
Anta's role within the group is indispensable:
- A Critical Foundation: In 2023, Anta generated 34.75 billion yuan in revenue, accounting for a significant portion of the group's total and contributing high profits. The group relies on Anta for financial support, talent, and supply chain capabilities to drive international expansion.
- Stability First: With the current market challenges, while proactive reforms are desirable, they may not be successful if they fail to meet expectations. It is better to return to a stable foundation before pursuing innovation. There is still time (5 years left to achieve the goal of becoming a global leader by 2030).
In summary, Xu Yang's resignation marks a shift for Anta, returning to its core strengths in the mainstream market after unsuccessful aggressive reforms. For the industry as a whole, this incident highlights the importance of practical and realistic channel upgrades. The new CEO of Anta is likely to be an internal candidate who will continue the company's more cautious approach.