Marvel At The Annual Income Of 1.3 Billion By Selling Trademarks

Antarctica is a famous brand in China. It was founded in 1997. It is one of the earliest underwear enterprises in China. It pioneered thermal underwear products and created a new road for the development of China's underwear industry. At present, the southerners have developed into mother and baby, clothing, bedding & cloth, kitchen, shoes, clothing accessories, outdoor, home appliances and other categories, and have made outstanding achievements.

Recently, consumers have found that while searching for "Antarctica" on e-commerce platforms, flagship stores such as food, men's wear, women's wear, home textiles, household goods, pantyhose and other flagship stores can hardly reach the end. As for the scope of business, it is a dazzling array of clothing, food, housing and transportation.

According to last year's annual report recently released by Antarctic e-commerce, during the reporting period, the total number of cooperative suppliers of Antarctica was 1113, including about 500 major cooperative suppliers; the total number of cooperative dealers was 4513, and 5800 authorized stores.

The total operating revenue of Antarctica was 3.907 billion yuan, up 16.52% year on year; the net profit attributable to shareholders of listed companies was 1.206 billion yuan, with a year-on-year increase of 36.06%. As the total revenue of brand licensing is about 1.3 billion yuan, it is called "selling trademarks" with annual revenue of 1.3 billion yuan.

In recent years, the brand of Antarctica has been listed on the list of unqualified products of the national quality supervision department and all levels of consumer associations, and has been named by the market supervision department recently.

It is understood that Antarctica began to transform in 2008: it directly cut down factories and distributors and only engaged in "brand authorization" business. The inspiration of this business comes from another giant of thermal clothing, Hengyuanxiang.

As early as 1991, Hengyuanxiang began to explore the "consortium model", that is, cooperating with the factory, the other party uses Hengyuanxiang's brand trademark, and the profit is divided into half of Hengyuanxiang's profits. However, Hengyuanxiang has only one authorized factory, which is quite restrained.

In 2018, the scope of authorization of Antarctica has been greatly expanded, from underwear to men's and women's wear, home textiles, maternal and child products, household appliances and other categories. There are 866 upstream authorized manufacturers, 4186 downstream authorized distributors and 5535 authorized stores.

Under the mode of brand authorization, the Gmv (total transaction volume) of Antarctic e-commerce brands continues to soar. The data shows that in 2019, the Gmv of Antarctic e-commerce in various e-commerce channels can reach 30.559 billion yuan, an increase of 48.92% year-on-year. Among them, Gmv brand increased by 2752 million yuan.

Cheng Weixiong, an expert in textile and garment brand management, said, "at the moment of online traffic dominated business model, Antarctic e-commerce has integrated online resources, and has made an underwear brand into a full category brand in a few years, which has successfully met the needs of the sinking market and has obtained great economic benefits.".

If things go on like this, Antarctica will eventually exhaust the vitality of their brands. Lai Yang, President of Beijing Jingshang Circulation Strategy Research Institute, said, "the most essential thing in business management is the intrinsic value of the brand, which can not be solved by external commercial adjustment."