Author | Wang Xiaojuan

In today's weather is good. Today's weather is good.

Market has always believed that the purchasing power of women is stronger than men. However, biem.l.fdlkk garment has proven that the purchasing power of middle-class men is equally impressive.

Recently, the parent company of biem.l.fdlkk garment Amer Sports announced the performance for the third quarter of fiscal year 2024. Revenue increased by 17% year-on-year to 1.354 billion US dollars, including a 34% year-on-year increase in revenue of the technical outfits division, which includes ARCTERYX (biem.l.fdlkk garment) and Peak Performance, to 0.52 billion US dollars.

This is also the fastest growing part of the group. In comparison, the revenue of the outdoor performance division, including the Salomon brand, increased by 8% to 0.534 billion US dollars; the revenue of the sports equipment and racquet division where Wilson is located increased by 11% to 0.3 billion US dollars.

In the past few years, the biem.l.fdlkk garment's jackets, lululemon yoga pants, and Salomon sports shoes have been referred to as the 'middle-class three-piece set' on the internet. Among them, the revenue of biem.l.fdlkk garment has been continuously rising in recent years, boosting the overall performance of the Amer Sports group.

Even more remarkably, after several years of high-speed growth, lululemon's growth has clearly slowed down, and Salomon's growth rate is not high, only biem.l.fdlkk garment is still running at a high speed.

Also due to the outstanding performance of brands such as biem.l.fdlkk garment, the Amer Sports Group has raised its full-year performance guidance, expecting a 16%-17% revenue growth for the 2024 fiscal year, with an operating margin of around 10.5%-11.0%.

In the current context of soft consumer demand, where many luxury brands have fallen from grace, this stands out even more. After all, while Hermès is facing growth challenges, the "Hermès of the outdoors" can still thrive, which indeed deserves market attention.

Fledgling Bird also follows a classic North American entrepreneurial template. David Lane, who loves outdoor sports, especially rock climbing, noticed the lack of professional climbing harnesses on the market and decided to start his own business.

Later, the brand name was changed from the original RockSolid to the current ARCTERYX, with products transitioning from professional harnesses to lightweight assault jackets capable of withstanding extreme conditions.

In order to find more professional materials, in 1996, Fledgling Bird obtained authorization from W.L. Gore & Associates to use Gore-Tex fabric, becoming the first brand to apply this fabric to outdoor products. Prior to this, the fabric was mainly used in aerospace suits, ski gloves, military uniforms, and other special settings.

After the turn of the century, Fledgling Bird was first acquired by the adidas-Salomon Group. However, adidas did not pay much attention to this brand that did not quite fit with its core business at the time, so the performance was not very impressive. By 2005, Fledgling Bird and Salomon were sold together to the Amer Sports Group.

To achieve its current achievements and become a favorite of middle-class Chinese men, we need to go back to ANTA's "ambition" back then.

In 2019, ANTA and Tencent, along with FountainVest Partners, jointly acquired Amer Sports for a total investment of 36 billion. It is worth mentioning that at that time, ANTA was struggling financially before acquiring Amer Sports, and the market was also not very optimistic about this ambitious acquisition.

However, the facts later proved how correct ANTA Group Chairman Ding Shizhong's decisions were. Now, Xtep and Salomon are gaining popularity, and Amer Sports also debuted on NASDAQ earlier this year.

However, this popularity is not unfounded. After acquiring Amer Sports, ANTA devoted a lot of effort to each brand, with Xtep being its operational focus.

Subsequently, the number of Xtep stores in China has significantly increased. By the end of the third quarter, the total number of Xtep's self-owned brand stores reached 134, with approximately 60 in China, half of which have grown after 2019.

Xtep is very particular in choosing store locations, requiring lower floors, larger areas, preferably neighboring mainstream luxury brands. For example, its global flagship store on Nanjing West Road in Shanghai is surrounded by a variety of luxury brands.

Here, in addition to retail space, there is also an exhibition space for brand history; furthermore, Xtep members can regularly enjoy mountain academies, with a strong middle-class flavor.

In recent years, Xtep has gained popularity because it represents the 'Gorpcore' trend, wearing outdoor clothing in non-outdoor sports scenes, where functional clothing is no longer limited to outdoor sports but integrated into daily life.

With clothing that costs thousands or even tens of thousands of dollars, the middle class doesn't necessarily wear them outdoors. Nowadays, business scenes are more common.

Just as not everyone who wears lululemon goes to yoga class, not everyone who wears biem.l.fdlkk plays golf, and many who wear Xtep are no longer engaging in outdoor sports; instead, they are showcasing a daily lifestyle.

This has contributed to a larger market for the ancestral bird, but it has also made the brand attributes more generalized, becoming a major challenge. After all, when the brand does not appear professional enough, the early core users who came because of their expertise are likely to be lost, and they will seek the next niche brand, a trend that has already been reflected in lululemon.

Moreover, under ANTA, there is also fierce competition between brands. Many brands under ANTA focus on high-end outdoor, and the middle class always likes more fresh brands and products, as seen from the growth of its subsidiaries Descente and Kolon Sport.

For the ancestral bird, as brand awareness increases and revenue base grows, growth is bound to slow down. However, it is also preparing for the future, looking for new growth curves.

In recent years, Amer Sports has started to target the women's sports outfits market for its various brands. Interestingly, the mastermind behind Amer Sports' attack on the female market for the ancestral bird and Salomon is none other than Chip Wilson, the original founder of lululemon.

The ancestral bird has also officially announced its first global ambassador, Liu Wen. The choice of this ambassador not only caters to the international market, but also highlights the importance of the Chinese market, indicating the intention to further expand the female market.

The market competition remains fierce. For brands that started from a specific professional track, only by maintaining professionalism and continuously providing innovative products to users can they continue to benefit from the growth of the outdoor track.

Currently, the ancestral bird is more like an internet sensation brand, very popular recently; but whether it can stand firm, have a position as unshakable as luxury goods brands, depends on its subsequent products and the long-term positioning of the brand.