(Yicai Global) Aug. 26 -- The tale of two Chinese clothing companies, Anta Sports Products and Semir Garment, shows the power of good branding and honed focus on e-commerce in the Covid-19-hit retail sector.

Anta's revenue slid 1 percent to CNY14.7 billion (USD2.1 billion) in the first half with a 20 percent slump in net profit at CNY2.4 billion (USD347.6 million), the Fujian province-based firm said in its earnings report published yesterday. But the decline would have been bigger without Fila, an Italian sports brand that it runs in China.

Fila's revenue exceeded that of the homegrown Anta brand for the first time at CNY7.2 billion, rising 9 percent from a year ago amid the latter's 11 percent slump.

Another Chinese firm with foreign brands under its belt had a different story to tell. Semir's revenue decreased by 30 percent to CNY5.7 billion in the first half and its net profit was 97 percent down at CNY22 million (USD3.2 million), the Wenzhou-based firm said in its earnings report also published yesterday. It blamed overseas losses for its dismal performance.

Both of the companies have been stepping up online retail investment to target their clients more directly but only one of them has been able to see any major results.

Anta's online sales rose by more than 50 percent in the first half as its campaign during the 618 shopping festival proved fruitful.

Meanwhile, Semir was also looking online while paring offline costs. It decided to sell Sofiza, a French unit known for brands such as Kenzo Kids, Paul Smith Junior, and Esprit Kids, to its parent in late July. It had bought the Paris-headquartered company in 2018. The unit, that sells upscale children's clothing with a debt of CNY1.2 billion, lost CNY121 million (USD17.5 million) in the first half.

It took Anta four years to make a profit from Fila after acquiring the mainland business, China Business Journal reported, citing Zhang Qing, chief executive of Beijing Guanjian Zhidao Sports Consulting. Considering how Sofiza's brands are less known among consumers than Fila, two years is not enough for Semir to make any fundamental changes, Zhang added.

Anta's share price [HKG:2020] slid 3.9 percent to HKD83.55 (USD10.80) this morning.

Semir's shares [SHE:002563] fell 3.4 percent to CNY7.43 (USD1.10).

Editor: Zhang Yushuo, Emmi Laine