Brands Choose Shanghai to Set Up Global Headquarters

October 12,2021

Recently, leading Chinese fashion brands including Anta, Xtep, Li-Ning, and Semir have announced to set up “Global Headquaters” in Shanghai one after another, viewing Shanghai as the “foothold” for the initiation of their global strategy.

Anta

In 2019, the construction of Anta’s Global Retail Headquarter——Shanghai Anta Center officially started.

Shizhong DING, Chairman of Anta’s board of directors and CEO of Anta said: “Shanghai West Hongqiao Business Zone is located at the ‘golden axis of economies’, which gives us an important geographical advantage to settle in Shanghai and to connect to the world.”

It is said that Anta’s Global Retail Headquarter was designed by the American construction and design company named NBBJ. The project covers an area of 35,000 square meters, and is consisted of 5 buildings, forming a multi-functional park. The entire project will be completed in April 2023.

According to Anta’s financial report, its revenue in the Chinese market has exceeded that of Adidas. Anta’s overseas asset Amer Sports has not only doubled its sales in the Chinese market, but also stabilized its overseas businesses as the pandemic calms down, contributing to the overall income of more than one billion euros. EBITDA sales have created a new record, reaching 557 million yuan.

Xtep

On 17 August, Shanghai Xtep Sports Product Co., Ltd. purchased 57 commercial units in Minhang District, Shanghai with around 10,000 square meters floor area for 439 million yuan, and this will serve as the Group’s international headquarter.

In 2019, Xtep International began its multi-brand strategy, and took over Saucony, Merrell, K-Swiss, and Palladium. In June 2019, Xtep International formed a strategic partnership with Hillhouse Capital Group to develop the global business of K-Swiss and Palladium together.

The 2021 mid-term performance report of Xtep International showed that the group earned 4.135 billion yuan within 6 months, among which the sports fashion section formed by K-swiss and Palladium contributed 462 million yuan, accounting for 11.2% of the total income.

Li-Ning

On 27 August, Li-Ning bought 8 levels of office building and 128 parking spaces for cars in Changning District, Shanghai with 1.034 billion yuan. The total construction area of the property is around 17.4 thousand square meters. It is expected to be completed by 30 September 2022. Li-Ning expressed that they planned to establish their global business headquarter of Yangtze River Delta in Changning District, Shanghai.

In addition, Li-Ning e-commerce global headquarter and smart delivery center will be set up in Fangtai area of Anting Township, Shanghai, covering an area of 57,474 square meters, with a total investment of over 600 million yuan. This project will be responsible for more than half of Li-Ning’s total volume of national logistics.

At the beginning of the 21^st century, Li-Ning became one of the first batch of Chinese sports brands that went overseas, landing onto the European and American markets, opening stores overseas. In 2008, Li-Ning established an overseas footwear research and development center in Portland, America. In recent years, through sponsoring international sport events, athlete endorsement, collaborations with famous IPs, and frequent presence at international fashion shows, Li-Ning continues to grow its influence on the international market.

Semir

On 30 August, Semir Group released an announcement saying it will invest 1.006 billion yuan on expanding its existing area for storage and logistics near Yuanjiang Road Station of Shanghai Metro Line 15 to help the company build its future “international headquarter”, “fashion headquarter”, and “entrepreneur headquarter”.

Semir Group was founded in 2002. In recent years, the Group’s leading brand Semir and children’s clothing brand Balabala have sped up going overseas, with a focus on the Middle East and Southeast Asia markets and developed merchandises that were designed specifically for overseas consumers. The Group has a pressing need for the establishment of its global headquarter.