Is The Licensing Mode Feasible?

The 2019 performance Bulletin released by Antarctic electricity supplier shows that the company's net profit has increased by more than 30%, of which the brand licensing business has made a lot of contributions. In fact, the business mode of Antarctic electricity suppliers through brand authorization has been controversial. Is the brand licensing mode replicable in the struggling fashion industry? How far can the Antarctic business's light asset model go?

Brand licensing boosts high performance growth

Performance express shows that last year, the Antarctic electricity supplier business income was 3 billion 908 million yuan, an increase of 16.55% over the same period last year, net profit of 1 billion 206 million yuan, an increase of 36.04% over the same period last year. Among them, the turnover of the South Pole was 27 billion 138 million yuan, an increase of 52.86% over the same period last year. The brand turnover of Cartier Le crocodile was 2 billion 986 million yuan, an increase of 27.94% over the same period last year, and the sales volume of the classic brand was 228 million yuan, an increase of 45.61% over the same period last year. Antarctic electricity supplier said that during the reporting period, product category expansion, supply chain resources increased, electricity supplier service efficiency improvement and so on, prompting the company's performance improvement.

Public information shows that Antarctica relies on the underwear brand of Antarctica, and successfully launched its backdoor listing in 2016. At present, the company's main business is brand licensing, brand integrated services, mobile internet marketing business and other businesses, among which the brand of Antarctica is still the main source of company revenue.

The reporter inquired the financial data of Antarctic electricity supplier and found that since 2016, the company's performance has maintained stable and rapid growth for a long time. How does Antarctic electricity supplier make money by brand authorization?

Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., in an interview with the China Daily News reporter, said that Antarctica had done its utmost in the brand licensing business. A traditional lingerie brand has successfully transformed its online brand to the whole category licensed brands such as underwear, home textiles, women's wear, children's clothing, mother and infant. It has greatly increased the gross profit margin by charging the supplier's comprehensive service fee and the dealer's brand authorization fee.

In fact, the Antarctic electricity supplier can no longer be regarded as a simple clothing enterprise. Cheng Weixiong admits that the company is closer to a brand licensed and service company. In recent years, the Antarctic electricity supplier has grasped the volume of traffic volume of Alibaba, Jingdong, spelt, vip.com and other electronic business platforms, forming a larger customer volume, bringing scale benefits to the company, and maintaining steady growth in performance is normal.

In addition to brand licensing business, Antarctic business is still expanding its Internet marketing business. In 2017, the company entered the Internet advertising and marketing business through the acquisition of Beijing time Internet Technology Co., Ltd., through the purchase of traffic resources in the mobile media delivery platform such as Tencent application treasure, today's headlines and so on, putting the promotional information of customers App, products and other products, and generating mobile interconnected media platform business revenue. According to the Antarctic electricity supplier secretaries revealed that the company has set up a direct broadcast business department, is organizing professional teams to carry out the relevant layout.

Is the idea of transformation desirable?

Coincidentally, the recent attention of women's shoes enterprises seem to be taking the transition route of light assets and Internet business blessings on Saturday. For those garment companies eager to embrace the Internet, is this idea desirable and reproducible?

Cheng Weixiong told reporters that the idea of transformation of Antarctic electricity supplier is not suitable for all garment enterprises. For the time being, the Antarctic electricity supplier's light asset model is based on the abandonment of product design and production links, and limited control over the quality of products, in the process of licensing categories and online operations. At the same time, the company's brand licensing is more, seemingly infinite, but it will actually lose the reputation and loyalty of the company.

Currently, affected by the new crown pneumonia epidemic, garment enterprises have turned to online marketing and sales. Cheng Weixiong said that the future clothing enterprises will increase investment in online e-commerce channels. At the same time, brand casting requires enterprises to adhere to the main business and focus on products. From this perspective, although the Antarctic electricity supplier's performance at the moment is dazzling, but long ago, the brand effectiveness will gradually weaken.

It is worth mentioning that the Antarctic electricity supplier's recent cross-border cosmetics business has also attracted the attention of the industry. Antarctic electricity supplier said that this will help enrich the company's fast moving products category matrix, enhance the company's profitability and comprehensive strength. But in Cheng Weixiong's view, Antarctic business cross-border development of cosmetics business is due to the growth bottleneck of its existing business development, and needs to promote diversified development of commodities to ease future business pressure.