Famous Brands Selling Only Tag Brands Earn 1 Billion 300 Million A Year By Selling Labels.

The 6 - 18 of the Mid Year Festival has just come to a close. For those consumers who want to hoard goods, they do not know how many products they have bought this year.

The southern underwear of the warm underwear brand has now developed into every aspect of life. On the Taobao, the search for the "South Pole" shop has not only underwear, but also women's clothing, men's clothing, home textiles, food and so on, and many shops are marked with special shops, flagship stores and official shops.

Are there hundreds of brand shops in the south? Are they really brand stores?

I believe that many consumers who buy the products of Antarctica are because they are familiar brands and will have more quality protection. But few people know that the Antarctic people do not have their own production line now. The original factory stopped production line 12 years ago. Now the south pole only relies on the brand reputation they made in the early years, doing the business of "brand authorization".

What is brand authorization? It refers to the authorized person who uses the trademark or brand owned or represented by the authorized person to give the authorized person the use of the contract. That is to say, the Antarctic has sold the brand from selling products.

Since 2008, the Antarctic people have cut down factories and dealers and embarked on the brand authorized business mode. However, the Antarctic people are almost indifferent to their partners. Taking Tmall as an example, the cooperation factory of Heng Yuan Xiang needs to pay 1 million yuan deposit, and the Antarctic people only need to pay 100 thousand yuan.

By using the tag of the south pole, some "unlicensed" products can be straightened up and transformed into famous brands. Their prices will also rise greatly, and the profits of trademarks can be increased by tens of dollars, excluding trademark fees.

Low threshold licensing standards also bring huge benefits to the Antarctic population. In 2018, the revenue of the South Pole was 3 billion 350 million, of which 930 million of brand authorized revenue was 27.8%, accounting for 27.8%. In 2019, the revenue of the South Pole was 3 billion 910 million, of which 1 billion 300 million of brand authorized revenue was 33.2%, accounting for 33.2%.

According to the 2019 earnings data of the Antarctic, it has 1113 suppliers, 4513 distributors and 5800 authorized stores, with an increase of 28.5%, 7.8% and 4.9% respectively.

In a low threshold of licensing, the electronic commerce platform has brought out all kinds of brand shops in the south, and has also brought problems to the reputation of the South Pole. According to "Southern Weekend" statistics, in 2018, a total of 14 subtitles of silk products, underwear, children's clothing and curlers were boarded on the national quality supervision department and local consumers' Association in a year, equivalent to once a month.

In addition to the Antarctic, we are familiar with the warm clothing brand north polar pile, Heng Yuan Xiang, Yu Zhaolin have coincidentally cut the production line, low-key transformation sold the tag.

Brand licensing is not uncommon, but many brands can still maintain a good brand image after empowerment. The key is that the company has strict control over the quality of the agent and the quality of the product. The Antarctic has no control and no quality control. It will only accelerate the loss of brand value and ultimately lose consumer trust.