China has been on a "buying spree of late, and not just for Swiss agribusiness giant Syngenta," according to David Wilder of the FINANCIAL TIMES. ChemChina’s acquisition has been "forced to share the headlines with a remarkable shopping binge by China’s top football clubs, with interesting implications for the country’s sports apparel manufacturers." Big money has been "flowing through Chinese professional football for years" -- not all of it legal -- but the imprimatur of President Xi Jinping has "breathed new life into the Chinese game." This policy, "part of a broader push to boost" the domestic sports industry, has "clearly benefited" int'l stars such as Alex Teixeira and Ramires, but global sportswear companies "are also likely to cash in." China has "been a boon for companies like Nike, which has defied widespread angst about the Chinese consumer slowdown with strong sales and profits in the country." But smaller domestic brands are "also set to benefit." Fujian province-based Anta may not have a seat at the sponsorship top table but it is "positioning itself to benefit from a groundswell of football-related activity in lower-tier cities." In a proprietary brand survey, Anta was China's "third most popular sportswear provider," and scored "particularly well" among lower-income households. In third-tier cities, 11.3% of respondents named Anta as one of the two sportswear brands "they most frequently buy," on par with adidas. Anta's football strategy is "focused on the grassroots." It is "investing in marketing and tie-ups" with provincial governments and local football coaching programs. Nike and the big brands "may have a lock" on the commanding heights of int'l football, but there is "still plenty of room for smaller players," such as Anta, in the lower leagues of the Chinese game. Investors recognize this: "Anta shares are up" 68% over the past two years (FT, 2/8).
