Anta Sports looks to capitalize on two-child policy with King Kow
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Anta Sports looks to capitalize on two-child policy with King Kow

Leading Chinese sportswear company Anta Sports is looking to capitalize on the relaxation of China’s one-child policy through recent acquisition King Kow. The country has played havoc with its demography over the past few decades by restricting couples right to have more than one child. But a combination of factors, from humanitarian outcry to economic threats from a declining population of working age Chinese, has seen the government in Beijing reverse course. Now, select couples will be allowed to have a second child, if desired.

Anta Sports share price has risen by 45% so far this year

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SOURCE: Yahoo Finance

Ding Shizhong, Anta’s chairman and CEO, said “with the introduction of the two-child policy by the Chinese government, the growth of the children’s wear market is widely expected to accelerate.” The company’s answer to this prediction is the acquisition of King Kow, a children’s clothing brand. Anta said that the deal did not “constitute a notifiable transaction”.

King Kow has 81 stores across mainland China, Hong Kong and Taiwan, giving Anta an immediate footprint in the region. This could be a boon, as it is not the only company that has been inspired by the policy change. Burberry, Armani and Gucci have all launched luxury children’s wear lines in the country, and domestic players are already expanding their children’s offerings.

Disclosure

Dominion holds Anta Sports in its Global Trends Luxury Fund.


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