“Although things are looking bleak now, it will eventually bounce back,” says JCI Senator Jonas Ang of Anta Sports. This past year, the sportswear company has had to content with not only consumers’ tightened purse strings due the Covid-19 pandemic, but also competition with online shops for what little consumer spending there is.
In this installment of BizTalks, Senator Ang tells us why he remains “bullish” with Anta’s expansion in the market, his belief in the importance of the brick-and-mortar experience amidst the boom in online shopping, and what to expect from the Anta brand in the near future.
Senator Business Profile:
Senator: PP Jonas Ang
Name of Business/Brand: Anta Sports
Location of Office/Stores/Branches:
Boutique Stores: SM Megamall, SM Aura, Eastwood CityWalk, Uptown BGC, Cloverleaf (soon to open: Trinoma, Galleria, RP Manila)
Department Stores: Landmark Trinoma, Landmark Alabang, RDS Galleria, RDS Cloverleaf, RDS Manila, RDS Festival Mall, RDS Magnolia, RDS Metroeast. (soon to open: RDS Las Pinas, RDS Galleria South, RDS Imus, RDS General Trias)
Online: Shopee, Lazmall, Zalora
Nature of Business/Product/Service: Sportswear
How did the partnership with Anta come to be?
My uncle introduced me to Anta back in December 2018. As part of their global initiative, they wanted to re-enter the South East Asian market the right way, having a very strong base in China already. I agreed to consult for them and helped set up their local office, manpower and workflow, logistics, stores, marketing, etc., with an agreement that I would apply as a distributor, which was granted in 2020. I set up SafeStep, a new company, as the Anta distributor for department store locations.
What were the factors that you saw and/or felt that Anta would be a good fit (no pun intended) for the Philippines?
Anta has very good products, competitive with the top 2 sports brands in the world. Price-wise, they are more affordable; design-wise, they are more fashion forward. I believe this is needed by the market as there is saturation and fatigue already with the top 2 brands. Philippines has already accepted China as a brand origin, with the influx of tech brands from China. China rubber shoes also have a small cult following, therefore all that’s needed is to re-introduce the brand and prepare the right distribution model.
What were the biggest challenges brought about by the pandemic?
Retail has been challenging, because of low foot traffic to malls, and lower spending by consumers. Managing logistics, manpower and inventory also had another layer of challenge, with managers working from home or not really seeing the products physically. Technology had to come into play, and the learning curve that came with it.
What measures are you taking, or have taken, to ensure the stability of the business?
Retail will be forever changed. Philippine customers, who were already picky and spoiled, have become more impatient. As consumers, we believe that items we want should be readily available, through any method we want, such as in-store, department store, online, via delivery or take-out…we get frustrated when we make the effort to shop, and we can’t find what we want exactly. As a brand, Anta has to be ready in all interaction points if it wants to grab market share.
This is where the focus is right now. Building / setting up the distribution points, backed by consistent marketing to spread the message that Anta is here, with competitive products and pricing, and convince the customers to try the product and figure out for themselves why it’s actually better.
These initiatives have to be backed by human capital with very good customer interactions skills, focusing on customer journey. Then we arm our frontliners with technology to provide them accountability on all aspects such as inventory, customer information, sell-through…and the visibility to their top management for them to make fast impactful decisions.
Can you share your viewpoints of the retail landscape?
My opinion on Philippine retail is a bit counter-intuitive. I believe brick and mortar retail is here to stay; it is part of life. Online is great, but it cannot stand alone. It’s up to the brand to provide the right combination of online and offline, and make sure the customer knows how they can get products in their own way. Although things are looking bleak now, it will eventually bounce back, and I’m bullish with expansion of doors in department stores because I know it will eventually normalize and by then, we’ll be ready with the distribution network.
Looking ahead, what will differentiate Anta from the other brands?
Anta is very product-focused, evident in their footwear and apparel that has a lot of technology. As opposed to a decentralized manufacturing process evident in the top 2 brands (meaning, they sub-out their manufacturing to factories around the world), Anta is very centralized in its manufacturing, where design to production is kept localized in China. For endorsers to co-create a product, they have to fly into China and work with the local design team…this is how Klay Thompson works with Anta for the KT line, and what Salehe Bembury did to produce Anta Nest.
Granted, the top 2 brands have more hype and spend a lot more on marketing. Anta has to catch up in the western marketing model and learn from best practices. But Anta has a lot to offer by way of product offerings and customer experience, because it has learned from their own brand journey managing more than 10,000 stores worldwide, with a majority of those in China alone. It’s only now starting to expand globally the right way, so expect the brand to grow in the years to come. If there will be a big differentiator versus the top brands, I would still say it will be product-driven Comfort, functionality, bang for buck – – you can’t go wrong with Anta. You will notice the difference when you try the product, and we’ve converted almost all customers this way – – with their own perception of what a sports item should be, and having that elevated experience when they tried on Anta for the first time.
What can JCI Manila members expect from Anta?
SafeStep will be rolling out more doors in department stores, and we are doing this nationwide. We’re targeting 25 doors by the end of 2021 despite the pandemic. Anta manages its own boutique stores and the local office will keep rolling out more branches. When you’ve got a great product, all you have to do is open more stores, which is what we’re doing.
Currently, it might be hard to go shopping in the mall, so for JCI Manila members who want to order Anta, they can order from us directly and we’ll send it from warehouse to their door, with a JCI Manila discount and free shipping. (They can search online for the product they want and we can finalize their order via chat.)