The Chinese economy was just beginning to open up in the late 1980s when a determined young man, a high school dropout, set off for Beijing with 600 pairs of shoes.
Ding Shizhong made them in a relative’s factory and intended to sell them. The money he earned allowed him to set up his first workshop, where he began manufacturing shoes for other companies.
The 17-year-old was one of many emerging entrepreneurs in China as capitalism took off under the watchful eye of Communist Party rulers.
But as it turned out, Ding had much more ambitious plans.
Since then, his business has grown into a sportswear giant called Anta, which has been building a portfolio of international brands including Arc’teryx and Salomon.
The company recently acquired a stake in Puma.
Anta now seeks to compete with brands like Nike and Adidas, a goal Ding made clear in 2005: “We don’t want to be the Nike of China, but the Anta of the world.”
Anta may not yet be a household name in the West, but it has more than 10,000 stores in China and sponsors elite athletes like freestyle skier Eileen Gu.
In February, the company opened its first store in the US, in the exclusive Beverly Hills neighborhood of Los Angeles.
The company’s global expansion — which comes as Donald Trump seeks to bring manufacturing jobs back to the U.S. through tariffs — highlights how essential and competitive Chinese supply chains have become for the manufacturing sector.
The rise of Anta —which means “safe steps”— is not an isolated case.
Decades as the “factory of the world” have given several ambitious Chinese companies the opportunity to compete directly with the same companies that were once their customers.
The ‘footwear capital of the world’
Founded in 1991, Anta began its journey far from the glamor of Beverly Hills, as a small manufacturer in the city of Jinjiang, in Fujian province, in southeast China.
But Jinjiang grew rapidly, transforming from a sleepy farming town into the “footwear capital of the world” as part of the government’s plan to boost specific industries in different provinces.
A large volume of investment soon followed, coming from sports footwear giants looking for factories abroad that would allow them to reduce their production costs.
In Jinjiang, as well as in neighboring cities along the east coast, several hubs specializing in different types of footwear have emerged, each with its own supply chain.
In the heart of central Jinjiang lies the municipality of Chendai, an area of about 40 square kilometers with thousands of factories and suppliers. This district helped cement the city’s reputation for manufacturing footwear for global brands such as Nike and Adidas.
Each center brought together suppliers of laces, soles and fabrics, as well as logistics companies that helped quickly transform designs into retail-ready products and distribute them.
In 2005, Fujian province alone was responsible for almost a fifth of global footwear production, according to United Nations estimates.
Up to a third of Jinjiang’s workers are employed by one of the city’s thousands of shoe factories, making it among China’s highest-income economic districts.
A similar phenomenon developed in several parts of the Asian giant.
Jinjiang was just one of many manufacturing centers on the east coast. The others produced clothing or electronics. This level of specialization in manufacturing was unheard of anywhere else in the world at the time, says Professor Fei Qin of the University of Bath in the UK, who researched factories in eastern China in the 2000s.
As foreign customers arrived at these factories to close deals, the country reaped more than just revenue.
“They learned not only to produce more, but also to produce better, faster and more consistently,” adds Fei.
A global firm
It was on these streets that Anta grew, manufacturing shoes on a large scale and at low cost for global brands.
First, it has established a vast distribution network for retailers across China, a crucial factor for manufacturers looking to expand.
At the same time, Anta gradually built its brand recognition in the domestic market, opening new stores and establishing partnerships with major sporting events, including national basketball and table tennis competitions.
Companies like Anta know that there is more value in being a recognized brand than in being a subcontractor, says Fei.
In 2007, Anta went public on the Hong Kong Stock Exchange, raising around US$450 million, a record at the time for a Chinese sporting goods company.
Brand consultant Wei Kan, who has worked for Converse and Nike in China, says Anta caught his attention for its integrated production center, which allowed it to design and market shoes faster than its competitors.
Furthermore, it was one of the few Chinese companies that targeted the same consumer segment as major Western brands, says Kan.
Companies like Anta, which start out making products for global brands, gradually learn the fundamentals of business management, thrive in China and “naturally aspire to more ambitious goals,” adds Kan.
There are many other examples, such as the technology company Xiaomi. This company started out as a software developer, customizing Android-based systems, before making its own phones, electronic devices, and now, electric vehicles.
Similarly, DJI made camera accessories and drone components before becoming an international drone manufacturer in its own right.
Perhaps the best-known example is BYD, which once made batteries for electric vehicle pioneers like Tesla and is now the world’s leading manufacturer in the sector.
“Each of these companies is now a giant in its field,” says Kan.
‘Multi-brand strategy’
Now, Anta has its eye on the Western market.
The company manages more than 12 thousand stores in China. It also has more than 460 outlets outside the country and plans to have 1,000 stores operating in Southeast Asia alone in the next three years.
Nike, which still holds the largest share of the athletic footwear market, has just a thousand stores worldwide.
Chinese companies are known for expanding quickly within their own country before venturing abroad, where they face greater challenges in expanding their operations.
To begin with, there is a challenge related to perception. Chinese products are often seen as cheap, low-quality items or mere imitations.
Anta has tried to overcome this barrier through acquisitions, as part of an approach it calls a “multi-brand strategy.”
The company’s first big move was the acquisition of Fila rights in China in 2009, making the Italian brand one of the main sources of revenue for its business, explains Elisa Harca, from Chinese marketing agency Red Ant Asia.
In 2019, Anta acquired a majority stake in Finnish sporting goods brand Amer Sports. That deal gave Anta control over Amer’s subsidiaries, including luxury brands like Arc’teryx and Salomon.
Anta also owns Wilson, an American manufacturer of tennis rackets and balls used by the NBA (National Basketball Association), and this year acquired a 29% stake in Puma, allowing it to assist the German company in its expansion in China.
These actions help Anta avoid “imposing” its products on every market and instead use its Western brands as a gateway, says business analyst Rufio Zhu of global sports marketing agency IMG.
This way, Anta can reach buyers who might be wary of a brand with a “made in China” label, notes Zhu.
Celebrity endorsements are a key asset for a global brand. Nike, for example, sealed its iconic deal with Michael Jordan in the 1980s. Anta signed basketball players like Klay Thompson and Kyrie Irving. However, it has not yet managed to close deals on the same scale as those that forged the prestige of brands like Nike or Adidas.
Furthermore, being a Chinese brand brings certain obstacles, given Beijing’s tense relationship with the West, and particularly the United States. American skier Eileen Gu, brand ambassador for Anta, has come under fire following her decision to represent China instead of the United States at the Olympic Games.
Companies that achieve significant scale must maintain a delicate balance between China and the West, Kan argues. “Brands like Anta must be prepared for this.”
Change of direction
Anta’s rise comes at a time when rivals like Nike and Adidas face their own challenges, both globally and in China.
American tariffs impacted the profits of these two companies, as they import products made in Asia.
Nike is also struggling to stimulate its sales as its foray into e-commerce failed in the wake of the Covid-19 pandemic. Additionally, demand in China has declined.
These difficulties put Anta in an advantageous position abroad, especially considering growing consumer interest in other brands, notes sports marketing expert Zhu.
“The question is not whether Anta will be able to increase its visibility, but whether its competitors will be able to adapt quickly enough to defend their own space,” adds Zhu.
Meanwhile, China is “future-proofing its manufacturers” by accelerating the deployment of robots in factories, which speeds up production and can reduce costs, Fei adds.
The opening of Anta’s first store in the United States occurred after years of selling its products in the country through department stores.
Its walls are lined with shelves full of sneakers and basketball shoes: two market segments that Anta needs to conquer in the US to compete with Nike or Adidas.
The company recognizes that it still has a long way to go.
“We are realistic about competition, but the global sportswear landscape is not a zero-sum game,” an Anta spokesperson told the BBC.
“We are confident that sports enthusiasts will recognize the innovations and brand value that Anta offers,” he added.
