Brand Health Check... Anta feels the pressure to acquire a personality

At first glance, Anta's situation hardly looks dire. Its finances are in good shape. It reported an increase in turnover of 50 per cent for the first half of 2008 compared to the same period last year, and its distribution network has expanded to more than 5,000 stores.

Yet part of the problem for Anta and other Chinese sports brands is the very fact that they are doing so well financially. Their focus has been on driving economies of scale, matching these with high-quality products and strong distribution. But because these activities have, so far, proved profitable, brands such as Anta have not felt the need to differentiate themselves. This, of course, stands in contrast to the cult-like dedication banner brands like Nike have cultivated. The pressure is on Anta to assert its own place in the market.

While creative incumbent JWT expresses confidence in the brand-building work it has done for Anta, others disagree. "There’s not a single Chinese sportswear brand that stands for something other than looking after the bottom line on a spreadsheet," says freelance planner Charles Frith.

It is not the case that Anta has not recognised the need for advertising - the brand spent Rmb 259 million (US$38 million) on advertising in the first half of 2008, and has been working with 4As agencies for years. It also has a sponsorship strategy involving table tennis, volleyball and basketball - though it has been left in the shade by rival Li Ning's Olympic success.

With a reputation as a brand for third- and fourth-tier cities, a change in strategy may be needed if it is to fulfil its mission statement "to be the top national sportswear brand in China in terms of brand desirability and market share". Its recently released interim report reveals a desire to focus on fashion and expand in high-population density areas.

Anta's pitch shows that it has recognised its marketing strategy as crucial if it is to become a true international player.

FACT BOX

- Anta’s Rmb 2.2 billion (US$320 million) turnover in the first half was dominated by footwear (54 per cent) and apparel (42 per cent). - It spent Rmb 259 million on advertising in the first half, but this was dwarfed by the Rmb 691 million spent by Nike. - Its Olympic strategy involved a campaign called ‘Fuel up China’ encouraging support for the Chinese team.

Simone Zhang, strategic planning director, Euro RSCG China

When Nike launched in China, I was an enthusiastic athlete and wore a local shoe brand called Huili. One day, a friend and athlete - one of the trendsetters in our social group - came to training wearing a pair of Nikes.

Nike's brand attributes matched what my friend stood for, and I was eager to own my own pair. That eagerness is like oxygen for a brand. It needs it to survive and to be great. Anta lacks this. It is perceived as an OK sports brand which is a follower rather than a leader. If a brand is considered the second choice by consumers, they probably buy it because it’s more affordable but they aspire to buy other brands. In sport, no one aspires to be second best. Anta needs to tap into its competitive spirit and differentiate itself from competitors.

It needs to develop a cooler, more individual touch. Nowadays, sports brands are as much about fashion as they are about sport - they define you and tell the story of what kind of athlete you are.

Anta's brand spirit is not being articulated and it is not telling a story. Its tagline, 'Keep moving, keep walking', needs an overhaul. In-depth consumer insight can help it find an edge and make it a brand of the future.

Stephen Drummond, national planning director, Y&R Brands, China

The Chinese are brimming with pride after the Olympics. But the trend to watch now is how Chinese post-Olympic nationalism evolves, and then to see if that trend begins to be a driver in sports brand preferences. Pride is at a peak but it isn’t a deciding factor in brand preference - yet.

National pride is a sensitive area for sports brands. Overdo it without legitimacy and they risk a backlash. There is no evidence of this sort of negative nationalism in China so positive nationalism is an area for Anta to leverage.

Tellingly, in Anta’s 'Pride' TVC released after the Sichuan earthquake, in the context of coming back after daunting setbacks, the brand says: "We’re Chinese, let’s prove ourselves". Adidas and Nike would struggle to say "we as Chinese people". But Anta and other local brands have room to play in this area.

This level of shared nationalism is a territory that will determine Anta’s competitive positioning. It also needs to make a strategic geographical choice. Given its strength is in the less affluent but enormous third and fourth tiers, would it be wise to add weight to expensive tier-one battles or continue to develop existing strengths?