The "Tag Economy" Of The South Pole Is Difficult To Sustain

In the past two years, with the rise of the national tide, a large number of traditional brands of Chinese goods are developing new vitality. But there are also brands of Chinese goods going to the "tag economy". When you search the "Antarctic" online, you will find that besides underwear, food, men's wear, women's wear, home textiles, household goods and so on. So many netizens laugh at it: as long as businesses are willing to pay the authorization fee, everything can be "Antarctic". Official website shows that in 2008, the "Antarctic" opened the brand authorized business mode. What do consumers and experts think of this model?

As long as the business is willing to pay the authorization fee.

Can everything be "the South Pole"?

What do the Antarctic people sell? The result may surprise you. Reporters in the Jingdong mall, Taobao search "Antarctic", found a variety of goods, including underwear, clothing, home textiles, and household daily necessities, fans, thermos kettle and various kinds of food. In addition, the reporter saw that different brands of the South Pole have different "flagship stores". In addition, the official shops, business shops, franchised stores, direct selling stores, self run shops and factory shops are dazzling.

Reporters inquired about the 2019 annual report of A share listed companies Antarctic electricity supplier. The company said: in order to further expand the brand awareness, the company focused on promoting the new positioning of the south pole, that is, "my family brand", so that more consumers can understand that the products of the South Pole have covered many aspects of underwear, men / women's clothing, mother and baby, outdoor, luggage, shoes, home textiles, household appliances, and other family life. Enhance consumer awareness of the brand of the South Pole. The company promotes brand promotion in many scenes. During the reporting period, the company sponsored Tmall's "double eleven" party and put in high-speed rail advertising. The company will continue to invest in the image upgrading, advertising and cross border marketing of the brand of the south pole, so as to create a national family brand that Chinese consumers love to see.

Ms. Guo, a member of the Nanjing citizen, told reporters that when he was shopping online, he often saw all kinds of advertisements of the southern people jump out. Thanks to its popularity, he bought some kinds of products such as children's clothes, underwear, thermal underwear, bottompants and so on. When she learned that the "South Pole" sold the tag, she said unexpectedly, "although the quality is good, it should never buy again."

Investor advice

The "Antarctic" brand has been established for 22 years.

Brand licensing business model opened in 2008

It has been reported that from 2008 onwards, the Antarctic people directly cut down factories and dealers, only doing "brand authorization" business. The Yangtse Evening Post / Purple bull reporter inquired the Antarctic electricity supplier official website, found that the company's development history mentioned: in 2008, broke the original pattern, opened the brand authorized business mode.

In addition, the important node of the company's development history also includes: in 1998, Shanghai Antarctic Textile Development Co., Ltd. was established, self operated mode, production and marketing integration. The brand of the "Antarctic" brand was created. In 2008, we broke the original pattern and opened the brand authorized business mode. In 2010, it opened the electricity supplier service. In 2012, we opened the NGTT (Antarctica community abbreviation) business model to create a sustainable industrial ecological chain. Listed in 2015. In 2016, the acquisition of cartel crocodiles and classic Teddy and PONY launched brand cooperation. In 2017, the acquisition time was interconnected to create a new growth pole.

The main business column of the company's official website is "brand licensing and integrated services". The specific introduction includes: "brand comprehensive service and dealer brand authorization service", that is, the company provides brand authorization and comprehensive services to authorized suppliers and distributors, and collects brand comprehensive service fees and dealer brand licensing fees respectively. According to authorized suppliers, authorized dealer needs and business development needs, the company provides resources integration, data empowerment, R & D design, quality management and traffic management to provide effective services to enhance partners' business capabilities and profitability.

Business income constitutes, brand authorization annual income 1 billion 300 million yuan.

Earn 1 billion 300 million a year by selling labels.

Investors remind "brand extension trap"

According to Wind's annual report 2019, the company found that the company's revenue in 2019 was about 3 billion 907 million yuan. Among the operating income components, 31.76% is brand integrated service business, the amount is about 1 billion 240 million yuan, and 1.68% is authorized by the dealer brand, with an amount of about 65 million yuan. Brand licensing related revenue totals about $1 billion 300 million. In this regard, some media call it a "sales mark" income of 1 billion 300 million a year.

What is the evaluation of the company's model? Yangzi Evening News / Purple bull reporter inquired the Shenzhen Stock Exchange "interactive easy" platform, found that in June 28th, some netizens said they were investors of the company, and they were very optimistic about the business mode of the company. But they also reminded the company that the brand of the South Pole had no problem in expanding the underwear category (SKU), but with the development of the company, the company gradually extended the category to small household appliances, and even washed it. Clothes machine, "this kind of brand hitchhiking may fall into the brand extension trap, harm its own brand, suggest that different categories of companies can create new brand to develop." In response, in June 29th, the company responded by thanking the proposal and turning it to the management of the company.

Expert comment: "tag economy" is not sustainable

There are many famous trademarks in China.

Is this business model sustainable? Ding Hong, a researcher at the Jiangsu Academy of Social Sciences, told the Yangtze Evening Post / Purple bull news reporter that the brand is not a nothingness concept. Any successful brand has its long-term stability support for the real economy, products, technology, quality and standards. Apart from these, the use of "brand" which has no control and authorization to squeeze excess profits has no long-term vitality, and its business mode is not sustainable.

Song Qinghui, a famous economist, told reporters that the southern style of play is very "business minded", but it is not sustainable. This is also the reason why these brands frequently exhibit quality problems.

Song Qinghui further pointed out that the practice of well-known trademarks of domestic products is equivalent to smashing signs, which is equivalent to doting the thirst for a long time. It is understood that there are many brands of Chinese made goods, such as Heng Yuan Xiang, Tai Zilong, scarecrow, carthel crocodiles, cat people, north polar fabrics, big mouth monkeys, Yalu and so on.

"Under the attack of big brands abroad, the only way to win the brand of domestic products is to win by innovation, and to conquer consumers with good reputation." Song Qinghui said that in recent years, the time-honored brands such as White Rabbit candy, Lining and so on have been making efforts in fashion and younger, and have made breakthroughs across the whole line, in order to adapt themselves to the needs of consumers. In the context of industrial transformation and upgrading and the increasingly fierce competition in the industry, many "old brand" brands have gained new profit margins through cross-border innovation. Original title: [Video] the "brand economy" of domestic brands: the factory has long been "shut down", and the "Antarctic" sales income is 1 billion 300 million per year.