Antarctic E-Commerce, Whose Share Price Has Gone Crazy, Has Made Use Of 5800 Stores Opened By 4513 Dealers To Be The Leading Brand Of E-Commerce Consumer Goods!

Antarctica e-commerce Co., Ltd. (hereinafter referred to as "Antarctic e-commerce"), which has a unique business model, has recently become a "Star stock" in the capital market again. Since the end of March this year, its share price has soared from the lowest of 9.7 yuan to 23.75 yuan / share today (July 9), with an increase of more than 130% in just three months.

　　 Industry insiders believe that in terms of the business model and core competitiveness of Antarctic e-commerce, the socialized and digital management and control system built by the platform with brand authorization service combined with e-commerce is a more efficient and lower cost business model. The intervention of Antarctica improves the flow transformation and capital turnover efficiency of the integrated industrial chain, so that dealers, suppliers and consumers can achieve a win-win situation.

The reporter of the first textile network noted that the Antarctic e-commerce also responded to the business model this evening

Antarctic e-commerce brand integrated service business refers to the company providing comprehensive services such as brand authorization and supply chain services to authorized suppliers, and charging comprehensive brand service fees.

The brand authorization business of Antarctic e-commerce dealers is that the company provides brand authorization and e-commerce services to authorized dealers, and collects brand authorization fees from dealers. Dealers mainly open online stores on Alibaba's Taobao and tmall (hereinafter referred to as "Ali" or "Ali channel"), Jingdong, pinduoduo, vipshop and other e-commerce channels.

1. In 2019, the company authorized its own brands such as Antarctica, Cartier crocodile and Jingdian Teddy to 1113 suppliers, and authorized them to produce consumer goods such as lingerie / men's underwear / household clothes, bedclothes, men's wear, women's wear / women's boutiques, children's wear / children's wear / parent-child's wear, Maternity / Maternity products / nutrition products and various healthy life products Among them:

The positioning of the Antarctic brand is the public family lifestyle brand, and Antarctic human resources strive to become a world-class consumer goods brand mainly through e-commerce channels. In 2019, the Gmv of Antarctica brand will reach 27.138 billion yuan, with a year-on-year increase of 52.86%, which has become one of the leading brands of e-commerce consumer goods.

Cartier crocodile brand positioning is the young people like the international trend brand, to provide consumers with international fashion, quality and acceptable price, and strive to become an influential brand in the subdivision field. In 2019, the Gmv of Cartier crocodile brand reached 2.986 billion yuan, with a year-on-year increase of 27.94%.

Jingdian Teddy brand positioning is an international brand, focusing on mother and baby and Brand Co branding business, striving to become a model of international brand cooperation. In 2019, the Gmv of Jingdian Teddy brand reached 228 million yuan, with a year-on-year increase of 45.61%.

2. 4513 dealers authorized by Antarctic e-commerce have opened 5800 authorized stores in major e-commerce platforms;

3. The authorized suppliers sell the finished products to the authorized dealers directly, and the authorized distributors sell them to the end consumers directly through the authorized stores. Some of the authorized suppliers are also authorized dealers, adopting the mode of "front shop and back factory".

In this mode, the company does not charge about 4% of the total service fee for the company's franchised brand and gmdvolume, which is about 3.0% of the total service fee for the company's franchised brand and gmdvolume in 2019. Therefore, they charge about 4% of the total service fee for the company's franchised brand and gmdvolume in this mode If the net profit rate of Gmv is not higher than that of other brands, then the net profit rate of Gmv is not higher than that of other brands.

5. In 2019, the statistical Gmv of Antarctic e-commerce channels will reach 30.559 billion yuan, with a year-on-year increase of 48.92%. The increased Gmv of 10.038 billion yuan will bring about 432 million yuan of brand authorization related revenue growth and about 335 million yuan of net profit increase, which is commercially reasonable.

Antarctic e-commerce admitted that the main reason for the growth of the company's brand comprehensive service revenue is that the growth of online retail sales in China has driven the business growth of authorized manufacturers.

According to the statistical data released by the National Bureau of statistics, the online retail sales of physical goods in 2019 reached 8523.9 billion yuan, an increase of 19.5% over the previous year, accounting for 20.7% of the total retail sales of consumer goods, an increase of 2.3 percentage points over the previous year. China's e-commerce channels still maintain vitality and steady growth, providing a good industry environment for the company's brand comprehensive service business development.

According to the public statistics, China's major e-commerce channels still maintain medium and high-speed growth. Among them, Alibaba channel's Gmv in 2019 is 18.82% year-on-year, pinduoduo channel's Gmv in 2019 is 113.44% year-on-year, and Jingdong channel's Gmv is 24.36% in 2019. This provides a good sales channel for the company's Gmv growth of various brands.

According to the financial report, in 2019, Antarctic e-commerce achieved a revenue of 3.907 billion yuan, a year-on-year increase of 16.52%. The net profit attributable to shareholders of listed companies (hereinafter referred to as "net profit") was 1.206 billion yuan, with a year-on-year increase of 36.06%. The net cash flow generated from operating activities was 1.255 billion yuan, with a year-on-year increase of 127.59%.

　　 In terms of the overall gross profit margin, the main reason for the increase of Antarctic e-commerce from 34.47% in 2018 to 38.50% is that the revenue growth rate of the company's high gross profit rate business was higher than that of the low gross profit rate business

1. Brand comprehensive service business: the gross profit margin in 2018 and 2019 are 94.11% and 93.36% respectively, and the revenue in 2019 will increase by 37.89% year on year.

2. Dealer brand authorization business: in 2018 and 2019, the gross profit margin was 96.52% and 94.85% respectively, and the revenue in 2019 increased by 93.31% year-on-year.

3. Mobile Internet media delivery business: the gross profit margin in 2018 and 2019 is 6.89% and 7.50% respectively, and the revenue growth in 2019 is only 10.47% year-on-year;

4. Mobile Internet traffic integration business: in 2018 and 2019, the gross profit margin was 36.52% and 34.65% respectively, and the revenue in 2019 decreased by 33.20% year-on-year.

Wang Feng, an analyst with Huajin securities, said that as an early large-scale online transformation clothing brand, the Antarctic e-commerce relies on the high turnover of suppliers and the reduction of intermediate links to achieve high cost performance, and promote the rapid expansion of Antarctic e-commerce ecology in e-commerce channels. In the past three years, the Gmv of the full platform of Antarctic e-commerce has rapidly increased from RMB 7.2 billion to RMB 30.6 billion, with an annual compound growth rate of about 62%, which promotes the annual compound growth of net profit attributable to parent company of about 59% from 2016 to 2019.

From the observation, Antarctic e-commerce improves the cost performance through two methods, namely, accurate selection of products and creation of FMCG products. On the one hand, e-commerce channels need less SKUs to improve inventory efficiency, and suppliers directly connect with dealers to improve their fast response ability. In the keyword search page of e-commerce channels, the number of products that brands can enter the home page is limited, and the limited number of display makes the SKU width required by the brand narrower, and the e-commerce channel explosion strategy further reduces the number of SKUs, so as to improve the inventory efficiency. In addition, the Antarctic e-commerce directly connects with suppliers through authorized dealers, and even some suppliers have the mode of front shop and back factory, which improves the ability of rapid response to changes in demand, especially the explosive money, so as to realize the high turnover of the mode.

On the other hand, the promotion of consumer goods has become more cost-effective. Antarctic e-commerce complies with the downward trend of e-commerce channels, and the price band is extended to around white brand. By converting durable goods into FMCG products, the turnover rate of suppliers is improved. Therefore, the level of profit margin acceptable to the factory in each turnover is reduced, so as to improve the cost performance of products.

Finally, the rate of price increase from factory ex factory price to terminal sales price is more cost-effective than that of the industry, and the efficiency of the factory production part is improved, and the Antarctic e-commerce products are more competitive.

According to the financial report, from 2016 to 2019, the annual compound growth rate of Gmv of Antarctic e-commerce on Alibaba platform is about 57%, which is 23% higher than that of Ali platform as a whole; the annual compound growth rate of Gmv of Antarctic e-commerce on Jingdong platform is about 38%, higher than that of Ali platform by 30%; in many aspects, after pinduoduo pays more attention to quality in 2019, the growth rate of Antarctic e-commerce begins to be higher than that of platform 。

In Wang Feng's view, Antarctic e-commerce has achieved the scale advantage of e-commerce channels by virtue of its business model in line with e-commerce and the first mover advantage of early transformation of e-commerce, and has carried out category endogenous extension on various platforms to promote Gmv growth. Looking forward to the future, category endogenous extension is the direct driving force for the continuous growth of Antarctic e-commerce, and the category endogenous extension relies on a subdivided commodity, or keyword. Recently, the company has searched 100 keywords on Taobao, and the top three products in terms of sales volume have brand awareness accounting for no more than 10%. The vast majority of the top sales are not well-known brands, which provides opportunities for the extension of Antarctic e-commerce. Antarctic e-commerce is expected to continue to price brands on these keywords and play brands with white brands, contributing to the growth of Gmv.