Antarctic man, it’s too cold to live

2022-05-04 0 By

Winter has always been warm clothing sales home.The opening ceremony of this year’s Beijing Winter Olympic Games has made the brands of down jackets worn by delegations from all over the world a hot search.Among them, domestic brands represented by Anta successfully demonstrated their strength in thermal clothing product research and development and brand influence with the help of Olympic marketing, showing the multiple possibilities of domestic clothing brands.However, not all enterprises are willing to research and create their own, do solid brand, there is another unique brand authorization way, has been proved effective by some enterprises, among them the thermal underwear brand known as the Antarctic is one of the pioneers of this business model.However, at a time when domestic brands are increasingly focusing on competitiveness, the “one-time sale” business that constantly consumes brand value is getting narrower and narrower.As A matter of fact, eight years ago, taking advantage of the booming development of e-commerce, The South Pole people (stock name: “South Pole E-commerce”), which has been listed on the A-share market, abandoned their main business and stopped producing textile products themselves.In 2014, The company sold its wholly-owned chemical fiber and printing and dyeing business.By 2015, Antarctic E-commerce had completely stripped off its silk weaving business and completed the transformation from a traditional manufacturing enterprise to an e-commerce service enterprise.In other words, They sell their brand reputation accumulated over the past ten years as assets to achieve high returns through brand authorization.And, Antarctic people not only sell their own brand, but also through brand cooperation, purchase and other ways, to continue to expand the door tag business.In terms of performance, the transformation has worked.During the five years from 2015 to 2020, the net profits returned to mothers in the other years all achieved a relatively high year-on-year growth except that the net profits returned to mothers in 2020 declined.Income has grown in varying degrees for five consecutive years.But the momentum has reached a turning point.According to the Antarctic e-commerce recently released the performance forecast, in 2021, is expected to return to the mother net profit of 430 million to 550 million yuan, a year-on-year decline of 53.7% to 63.8%.Buckle non – net profit also appears 53.3% to 63.8% likewise significant decline.In this regard, the announcement is explained as a decline in sales of traditional search channels, a significant decline in brand comprehensive service income, as well as cross-border e-commerce and other new projects due to large initial investment.Two important messages are revealed. One is that consumers are paying less and less for the Antarctic brand.The second is that manufacturers are also abandoning the various tag services provided by Antarctic people.Both consumers and manufacturers do not buy it, the Antarctic people’s tag business is facing a crisis.In fact, from the second quarter of 2021, the revenue and net profit of Antarctic e-commerce showed a significant decline.Financial results show that in the second, third and fourth quarters of 2021, the net profit of the mother is 110 million, 160 million, 26.84 million to 150 million (estimated), respectively, down 63%, 46%, 69% to 94% (estimated).Revenue in the second and third quarters fell 11% and 3%, respectively.But at the same time, Antarctic people do not seem to have a strong sense of crisis, but are constantly expanding their own tag territory.In other words, if consumers and manufacturers don’t buy the brand, they will buy and operate other brands.At the end of last year, Antarctica added to its list of tags.On December 26, 2021, Antarcticman invested a huge sum of 330 million yuan to acquire 78 trademarks registered in Mainland China and Hong Kong by TBH GLOBAL CO., LTD, a South Korean clothing retailer.Including BASIC HOUSE hundred good, Mind Bridge, JUCY JUDY, etc.In other words, Mind Bridge, JUCY JUDY and other Korean clothing brands, which are declining in the domestic market, are being revived by Antarctic people by buying and resold them.It’s just that the brand is the same, but the clothes are not the same.At the same time, Nandian also purchased 100% equity of Baijia Hao (Shanghai) Fashion Co., LTD., held by Baijia Hao Hong Kong Co., LTD., with RMB 180 million.The two transactions were purchased with its own funds, totaling 510 million yuan. According to the company’s financial report for the third quarter of 2021, the company’s net profit in the first three quarters was 400 million yuan.This shows that the Antarctic people in the expansion of the tag territory on the great pen.This tag business reflects to the consumer end, becomes “everything can Antarctica man”.Search for “Antarctic People” on the e-commerce platform, and the brand includes thermal underwear, home textiles, hot water bags, hair dryers and other daily necessities. The corresponding store name is also mostly “Antarctic People XXX Store”.According to China Daily in 2021, Antarctica e-commerce has nearly 8,000 authorized dealers, who sell their own products under the name of Antarctica People.However, selling tags is indeed a low – cost, high – margin business.It is reported that The South Pole e-commerce has mobile Internet media, brand integrated services, dealers brand authorization three product business.Among them, the dealer brand licensing business, that is, selling hanging tags is the most profitable.According to the financial report for the first half of 2021, the gross profit margin of the business reached 96.3 percent, comparable to That of Moutai, and the revenue from tag sales was 43.983 million yuan in the first half of the year.In addition, in the total revenue of 1.66 billion yuan of Antarctic e-commerce in the first half of 2021, the combined revenue of mobile Internet media delivery and brand integrated services accounted for more than 90%, respectively 1.3 billion yuan and 240 million yuan.However, the disadvantages of this model are also obvious, one of which is that it is difficult to integrate the various products of the supplier system.According to the 2021 report, Antarctic e-commerce has nearly 2,000 authorized suppliers.With such a huge supplier system and corresponding various product categories, as a brand licensor, It is naturally difficult for Jantan E-commerce to guarantee product quality and quality control.Some media have reported, according to the intermediary company operating brand authorization, some brand authorization parties will not make requirements on the style and specifications of the manufacturer’s products, “do not false propaganda” can be.In practice, however, licensees produce uneven quality products and each faulty product damages the brand image, so the model is seen as a “one-time deal” that constantly consumes brand value.According to the Black Cat complaint platform, there have been 1,171 complaints related to People in Antarctica, most of which are about poor product quality and false publicity.On xiaohongshu and other content community platforms, there is no shortage of people in Antarctica to buy mocking content and “lightning protection” guide.And even by expanding the “brand library” to support performance, the capital market can not resist the bearish view of this model.Since November 2020, the share price of Antarctic E-commerce has been falling all the way. As of press time, it is quoted at 6 yuan/share, which is equivalent to the level at the beginning of the transformation in 2016.Conclusion Is interesting, many investors are looking at the Antarctic e-commerce this “one-time deal”.On the stock trading platform, some users said, “As long as the profit does not lose, do not sell”, “no loss is good”, “as long as the profit state is afraid of what”.It can be seen that in the capital market, there is always someone to inject capital for the period before the dividend of Naantarctic e-commerce brand disappears. What Naantarctic e-commerce should do is to extend the dividend period as far as possible through cooperation and brand purchase.The sales category of thermal underwear involved in The Antarctic e-commerce has been in the low-level market competition pattern for a long time, and the production of small workshops is still the mainstream, so it is difficult to form a brand.As a result, the manufacturer also produced a large number of brand authorization demand.Since it is difficult to make their own brand, it is better to buy brand authorization directly.In fact, in addition to the Antarctic people, several other well-known warm clothing hengyuanxiang, Arctic cashmere, Yu Zhaolin do business are hanging tags.However, in the case of frequent quality problems in the industry, no matter the brand authorization party, or the manufacturers who buy brand authorization will suffer the consequences.ZAKER News/Edited by Xiong Yue/Chopin