I spoke with Daye Deng (邓达业), author of the East Asia Stock Insights substack, about the Chinese sportswear industry and two of its leading players, Anta and Li Ning.
We began with Daye's background as a Chinese person growing up in Japan and then Canada; his career as a buyside investor; and why he's now devoting his time to companies in East Asia.
We then discussed the trends driving Chinese consumers' interest in sportswear; what makes sportswear companies good businesses; the rise and travails of China's homegrown sportswear companies; Li Ning and Anta's origin stories; Anta's success with a multi-brand strategy; the two companies distinct cultures; their corporate governance issues; the persistence of fierce inventory cycles in the Chinese market; and Anta's investment in Amer Sports, a holding company which owns Arc'teryx, Salomon, Wilson and other brands.
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