Antarctic E-Commerce Spent 100 Million Yuan To Lay Out Offline, And Solved The Order Anxiety Of Customers And Manufacturers With Supply Chain

On the evening of December 13, Antarctica e-commerce Co., Ltd. (hereinafter referred to as "Antarctic e-commerce") announced that in order to optimize the company's business layout, Antarctic e-commerce intends to establish a company jointly with Shanghai Chaolin Consulting Management Center (limited partnership) (hereinafter referred to as "partnership") and affiliated natural persons Zhang Yuxiang and Zhang Yun, which are the shareholding platforms of core team of offline retail projects（ Hereinafter referred to as the "target company"). The registered capital of the target company is 100 million yuan, of which 40 million yuan is contributed by the company with its own capital, accounting for 40% of the registered capital; 30 million yuan is contributed by the partnership, accounting for 30% of the registered capital; 20 million yuan is contributed by Mr. Zhang Yuxiang, accounting for 20% of the registered capital; and 10 million yuan is contributed by Ms. Zhang Yun, accounting for 10% of the registered capital.


The business scope of the exhibition is 100 million yuan, including business management, business management and business services.


According to Antarctic e-commerce, "Shanghai Youjia preferred Enterprise Management Co., Ltd." intends to cooperate with high-quality supply chain, and take the difference of commodity sales income from offline retail stores and consumer membership fees as the main source of income, and will not bear inventory risk. The target company carries on the business operation with the brand authorized by the listed company. On the other hand, after the establishment of the company, the majority of investors will be able to share the risk with the external investors. When introducing external investors, the shareholding ratio of the original shareholders of the target company will be diluted in the same proportion.


Antarctic e-commerce believes that this transaction will help the company to lay out offline channels, shape diversified flow channels and sales channels, and help to enhance the company's future profitability and comprehensive strength. In the short run, with large investment in the initial stage of business and a long return period, it will have a certain adverse impact on the profit margin and net profit of the merger, but in the long run, it will have a negative impact on the company's finance The business situation and business results play a positive role.


According to industry insiders, the Antarctic e-commerce channel is dominated by e-commerce, and the suppliers and distributors are responsible for all production and sales. They are mainly responsible for brand promotion, supply chain management, product quality management, mobile internet marketing and other light asset businesses, so they have a high gross margin. According to the financial report, in the first half of 2019, the gross profit rate of Antarctic e-commerce brand comprehensive service business is high 4%.


From the observation, at the supply chain end, Antarctic e-commerce connects upstream suppliers and downstream distributors through industry chain service providers, makes full use of big data for empowerment, independently develops data management tools for "Antarctic digital cloud", collects real-time Omni channel Gmv data, analyzes market dynamics through data analysis, and improves the synergy efficiency between distributors and supply chain.


The net profit of the company increased by RMB 0.289 billion to shareholders in the first quarter of 2019, with a year-on-year increase of RMB 2.389 billion. During the reporting period, the performance of Antarctic e-commerce stores in various e-commerce platforms was as follows:


1. Gmv realized in Ali channel was 11.136 billion yuan, with a year-on-year increase of 50.93%, accounting for 66.25%;


2. Gmv realized in Jingdong channel was 2.659 billion yuan, with a year-on-year increase of 36.47%, accounting for 15.82%;


3. Gmv realized in major social e-commerce channels was 2.153 billion yuan, up 131.81% year-on-year, accounting for 12.81%;


4. Gmv realized in vipshop channel was 746 million yuan, with a year-on-year increase of 198.93%, accounting for 4.44%.


There are also views here that Antarctic e-commerce is "the aggregator of suppliers and distributors": through the brand authorization mode, the flow anxiety of dealers and the order anxiety of suppliers can be solved, so that scattered production capacity can have a common brand, and can be sold online with higher efficiency. The supplier is the substantive customer of Antarctica.


From the perspective of observation, the Antarctic e-commerce model was born in the fast-growing e-commerce industry. Unlike Xiaomi, Netease's strict selection and other "brand 1" models, Antarctica is the "brand 2" model. The core is to gather dealers and suppliers, jointly operate a brand, and sell on third-party platforms (ALI, Jingdong, pinduoduo, etc.). Antarctic e-commerce is characterized by decentralization, high efficiency, and being able to fully enjoy the high growth dividend of e-commerce.


Wu Jincao, an analyst at Guojin securities, said that in the context of higher and higher flow costs and it is increasingly difficult for a single business without a brand, Antarctica brings together dealers, which effectively improves the search ranking and popularity of the whole alliance, and makes the distribution more efficient through integration, quality control, feedback and product selection. For supplier factories, Antarctica provides them with sufficient and stable orders.


The industry needs to see that the Antarctic e-commerce model has solved three problems: first, the flow anxiety of dealers; second, the order anxiety of suppliers; third, the turnover and feedback efficiency of sales


1. For dealers, the flow cost is rising, and small and medium-sized sellers have strong appeal for cooperation with brand merchants. For dealers, the traffic cost has increased significantly in recent years, which makes it more and more difficult for small and medium-sized sellers to do their business. However, it is difficult to see the scale effect when they make a brand by themselves. More and more small and medium-sized e-commerce dealers are becoming more and more friendly in the survey. The brand with high recognition, the existing sales scale and store scale, the brand operation following the industry changes and the brand potential energy shared by all dealers make the Antarctic e-commerce have great attraction and aggregation to the Sellers (dealers) of various e-commerce platforms.


2. For factories (suppliers), especially for small and medium-sized factories, stable orders are their lifeline. For the factory, the key word of the factory is "anxiety", because the factory buildings and personnel have idle costs. If there is a break in the order, or the production capacity of the two units does not match, it will undoubtedly be worse for the factory which has already had a thin profit. However, the widely existing small and medium-sized factories are more eager for stable and continuous orders. They hope to cooperate with brand companies for a long time to obtain stable orders. Because of the large and rapid growth of sales in the Antarctic community, the factories in the system have continuous and stable orders. Antarctic e-commerce authorizes factories to produce their brand goods, charges brand licensing fees to the factories, and enables them to obtain continuous and stable orders. A stable, long-term and mutually beneficial cooperative relationship has been formed with the factory side.


3. The decentralized and fast feedback system reduces the inventory risk in the system, and makes its products reflect more quickly to meet the market demand. In the traditional centralized brand operation mode, the brand merchant is the center, which needs to go through OEM & ODM production, taking goods, ordering meeting, distribution and other links, and also needs to store goods at the brand manufacturer and dealer for distribution. Under such a system, it takes at least 2-3 months for the terminal sales to be fed back to the brand manufacturer and the manufacturing end, with low feedback efficiency and relatively high inventory risk. In the Antarctic community system, suppliers and distributors are directly linked, so the terminal sales can be fed back to the factory & supplier within 7-15 days, so as to make decisions to change orders or change styles, or reduce production, so as to make the products more in line with the market demand and reduce the inventory risk in the system.


Wu Jincao introduced that the brand authorization business of Antarctic e-commerce operates in an overall decentralized and efficient system. With the rapid growth of Gmv, the main business income of Antarctic e-commerce also naturally grows rapidly. After excluding time interconnection, the company's main business grew strongly. In 2018, the company's main business income (excluding time interconnection) increased by 39% year-on-year, and the original Antarctic e-commerce business net profit (also excluding time interconnection) was 760 million, with a year-on-year increase of 50%. With the rapid development and growth of the community, Antarctic e-commerce has also gained beautiful financial performance, and its revenue and profits have grown rapidly.


In addition, from the perspective of supply chain integration mode, Wu Jincao believes that the factory is actually the customer of Antarctic e-commerce. Through its alliance siphon flow, Antarctic E-commerce creates a large number of dynamic sales at the terminal, provides stable and continuous orders for the factory, and integrates the scattered upstream capacity. Most of the factories cooperating with Antarctic e-commerce are medium-sized and small-sized factories with order anxiety. Antarctica participates in quality control and design, but the overall level is not deep, which is also ODM mode. Among the requirements of factory scale, Antarctic e-commerce has a strong voice in the system, and the feedback speed of dynamic sales is fast. This part of customers is actually Antarctic e-commerce to help them solve their order anxiety and continue to ship goods. Antarctic e-commerce integrates scattered suppliers. For these suppliers, Antarctic e-commerce has a strong bargaining power and a different role.


At the same time, the Antarctic E-commerce creates a decentralized alliance with the lightest mode and no inventory risk. This is a very important advantage for the brand industry of consumer goods enterprises, with high feedback efficiency and high efficiency of dynamic sales adjustment.


According to Wu Jincao. Relying on traffic harvesting, Antarctic e-commerce has reduced the dimension of other brands in the white card market and enjoyed the potential dividend of the current traffic pattern. Gmv scale and management operation barriers, the next 2-3 years development certainty is strong, but if 2-3 years later, the concentration of white card market will further improve, and the dividend will be weakened. So, whether to build a brand premium for Antarctic e-commerce is a problem that needs to be considered. The company has started to strengthen the overall brand building in 2018. The company's advertising marketing investment is mainly not the purchase of search traffic such as Ali (this is the work of dealers), but the investment in brand tone and overall image, such as outdoor advertising and program advertising, including the construction of offline stores It is hoped that in order to improve the overall tonality, whether the Antarctic e-commerce can successfully improve the brand tonality and establish the brand premium in the future is worthy of attention.