Home >

Annual Income Of 1.3 Billion Yuan By "Selling Trademarks"

2020/7/27 12:10:00 2

NGGGN

Its annual report of "selling trademarks" in the industry will be 1.3 billion yuan in 2020, which is called "the annual report of RMB 1.3 billion yuan".

As a matter of fact, in recent years, people have been questioning the brands such as the Antarctica who have survived by brand authorization: is this a good business? Obviously, this annual report of the Antarctic has made a response from a certain angle, at least for the brand side at present, it is a good business.

But for thousands of manufacturers who pay for the tags, can they really get a share of the OEM business and "prosper together" with the brand side to achieve a win-win situation?

98 yuan for the goods and 238 yuan after labeling

"When it comes to underwear and sweaters, few people don't know about Antarctica and Heng Yuanxiang. What we buy is not only the tag with the logo, but the customers accumulated behind it. " In 2014, when Qin Yue (not her real name) put the tags of Antarctica and Hengyuanxiang on the products in her factory, she firmly believed that it would be a "win-win" situation.

Judging from the brand influence at that time, Qin Yue's decision had a basis to rely on - from "Antarctica, not afraid of cold", to "Hengyuanxiang, sheep, sheep and sheep". Ten years ago, these brainwashing advertising words probably became the most impressive for many people, especially the young people in the first and second tier cities.

As a result, many people believe in the influence of trademarks and are willing to pay a lot of money for it. Among them, there are not only factories eager to join, but also many individual dealers.

The four leading brands of thermal clothing in Shanghai quickly realized the business opportunities, cut down the production line and sold the tag with low-key transformation.

Since 2000, Hengyuanxiang has developed nearly 100 upstream factories and more than 20000 downstream distribution outlets in 2007, with a turnover of 300 million yuan, of which the trademark royalty is as high as 266 million yuan, accounting for more than 80% of the company's revenue; In 2008, with 15 million consumers and 20 thousand terminals in the market resources, the Antarctica cut off all the self-supporting links at the production and sales ends, and sold off the factories that had been operating for more than ten years and concentrated on selling tags

The "brand authorization" mode of these brands is similar. There are mainly two types of cooperative customers: one is the distributor, that is, the cooperative distributor; the other is the supplier, who runs his own factory. For example, Yu Zhaoyuan needs to pay a deposit of RMB 50000, but it is not necessary to pay a deposit of RMB 100000 for yuzhaoyuanling factory.

One of the important reasons why these brands are popular in the market is that with the increasing popularity of the Internet and the rapid development of e-commerce in China in the past decade, most of the traditional dealers and factories, whether active or passive, try to open online stores and broaden sales channels.

However, for the manufacturers relying on traditional channels, it is far from easy to do e-commerce, especially once the initial good opportunity is missed, it becomes not so easy to enter the Bureau.

"For our traditional manufacturers, they are not competitive on the e-commerce platform and are not good at marketing. They have no idea how to operate the promotion and operation on the network." Qin Yue told zinc scale that because of its single category of sales and low profit, "if you want to make money, you have to rely on" volume ". We also had our own brand name to open an online store at the beginning. However, we found that according to the rules of the e-commerce platform, it was very difficult for our shop to appear on the home page. Consumers could not see us, so the goods could not be sold. If you can't do it, you can't do business. "

In fact, from around 2013, the traffic of several major e-commerce platforms at that time gradually inclined to brand e-commerce. The most labor-saving way for online stores lacking independent brands is to rent brands. After 2013, tmall stores adopted the invitation system, and the application channels were narrowed. As a result, the space of small and medium-sized Amoy brands and non brand goods is constantly occupied.

By virtue of the brand effect, the four thermal brands, namely, Antarctica, Hengyuanxiang, Yu Zhaolin and Arctic fleece, quickly seized the market and kept the flow entrance. In the past, the sales rate of Changke brand is higher than that of other brands.

In such a competition, when you search for thermal underwear on Taobao, the first few pages are their products. Unless you pay to buy advertising space, it is difficult for other businesses to appear in the first few pages of Taobao Search page.

"What's more, for those small factories that do their own brands, if they want to do their own e-commerce, the logistics cost and publicity cost are not low, and they have no experience. However, with the authorization of the brand side, the brand side will provide us with some service resources for free, including some daily operation teaching courses, free advertising space and activity registration, etc Therefore, for manufacturers Qin Yue, it seems to be a good shortcut to look for brand authorization and open online stores.

"The brand effect of Antarctica and Hengyuanxiang should be able to bring more sales. If the sales volume is more, the profit will be higher." Qin Yue soon became the first batch of authorized manufacturers in Antarctica. "After all, our traditional sales channels were single and narrow. Online shopping is a major trend and covers a wider range."

What's more, Qin Yue found that the underwear produced in the factory was originally sold at 49 yuan in the online store of her own brand, but it sold better at 89 yuan after hanging the tag of the Antarctic.

This is not an exception. According to the previous report, two of tmall's flagship stores in Guangdong produced jeans for 79 yuan at the weekend. However, after hanging the tag of the Antarctic, the price of two items in the Antarctic exclusive shop is 129 yuan. In addition to the standard fee of 8 yuan, the profit is increased by 42 yuan.

However, the price of Hengxiang brand increased from RMB 98 to RMB 156 in the retail market

Gradually, no matter it is diapers, fat machine, or glass, car seat cushion, these four major brands have genuine brand tags for sale. "As long as you can think of, you can apply for authorization for almost every commodity category you can use in your daily life." A customer service responsible for brand authorization told the zinc scale, "if you are willing to open up a new category, some brand tag prices can be more favorable."

As a result, it is difficult for people to distinguish the "Hengyuanxiang" or "southerner" from the hundreds of similar shops in the past by retrieving these brands on the e-commerce platform. The names range from official stores to enterprise stores, exclusive stores, direct selling stores, self-employed stores and factory stores. The main products sold range from underwear to pantyhose, to household clothes, daily necessities and massage instruments, and then to food

The factory became the only one to pay for the loss

In July 2020, the Antarctica released its 2019 annual report, which once again attracted attention to its "tag business".

In the composition of its business income, 31.76% is brand comprehensive service business, the amount is about 1.24 billion yuan; 1.68% is the dealer brand authorization business, the amount is about 65 million yuan. The total revenue related to brand licensing is about 1.3 billion yuan, so it is called "selling trademarks" with annual revenue of 1.3 billion yuan.

The 1113 suppliers, 4513 distributors and 5800 authorized stores are the buyers of this OEM business.

It's not hard to imagine that most suppliers and dealers paid for these tags with the idea of "win-win" with Qin Yue. But in fact, in recent years, it has been difficult for Qin Yue people to benefit from this so-called "commercial community".

It is obvious that many manufacturers are not encouraged to expand their products in order to meet the needs of the market.

"In fact, once there is a community, there will be only those who bear losses." In 2016, a Shanghai Textile Co., Ltd. of Xiao Yao (not his real name) signed an authorization contract with Antarctica to sell children's sweaters.

"At that time, the company did not have its own e-commerce team and platform, so it relied on the distributors of Antarctica to sell on the e-commerce platform." Xiao Yao, who was in charge of the sales work at that time, quickly found that children's sweaters were not the main category promoted by the southerners, and the market recognition was low, so it was difficult to become a popular category.

"At that time, a total of 1 million yuan was applied for children's sweater trademark, but in the end, 400000 sets of ready-made clothes were put in the warehouse." Xiao Yao told zinc calibration that although the company later found a contact person of the brand side and complained, "I thought the brand side could sell by volume, but I replied to the receiver: the price of the goods is too high and the style is too single. The factory needs to establish an e-commerce team as soon as possible to rely on its own sales ability to improve the initial accumulated sales volume."

In the end, the factory was the only one to pay for the loss.

With the expansion of the brand, more and more problems are coming.

"In the past two years, as brands are constantly expanding, they certainly hope that the more authorized stores, the better. On the one hand, if they sell more authorized stores, they will earn more money. In addition, when they expand more stores, their total brand sales will be higher, so as to keep the flow entrance and facilitate the gradual increase of prices." From around 2017, Qin Yue felt the pressure, "although we have brand endorsement, but because the brand side has authorized too many stores, the brand credibility has gradually decreased. In addition, it is difficult for brands to control the quality of authorized stores one by one. Once a store goes wrong, everyone will be affected."

Indeed, taking Antarctica as an example, according to the incomplete statistics of zinc scale, since 2018, Antarctica has been on the "blacklist" of unqualified products of the national quality supervision department and local consumer associations for more than 10 times. From silk quilt, underwear, children's clothing, shock clothing to electric push scissors and massage sticks, all products have been on the "black list" of quality inspection.

"A piece of rat poop spoils a pot of soup." Qin Yue said that in recent years, after media exposure, many consumers have found business opportunities for brand authorization, "the degree of trust and favor on the brand has decreased significantly."

In fact, once you choose to purchase a brand authorization, the manufacturer and the "brand" will be both prosperous and lose everything. At the same time, it means that if there is a problem with the brand side, the manufacturers will have to pay for it.

Taizhou June rose garment factory once appealed to the court for this reason. According to the official document website, the clothing factory signed the "production and distribution authorization contract of Antarctica" with Antarctica on April 7, 2013. After the contract was signed, June rose garment factory invested a lot of money and bought trademark accessories to start operation.

However, in May 2014, Huang Haibo, the spokesman of Antarctica at that time, exposed a whoring scandal, which reduced the brand value of the Antarctic trademark. The products of the clothing factory used the packaging box with the head picture of Huang Haibo. The scandal led to no sales, resulting in an economic loss of 390221 yuan.

Even so, there are still many dealers for authorization to open online stores to squeeze out the head. After March 31, 2015, tmall stores of brands such as Arctic velvet, Hengyuanxiang, and Antarctica will no longer accept new store applications. They can only open a new store by closing an old one. The only way to enter the bureau is to purchase it from other dealers.

”Now it has missed the best opportunity to enter the board, and the brand side's stores on many platforms have become saturated. If you want to open an authorization, you can only pay a high price. " Some dealers told zinc scale that even if you buy an authorized store, it is difficult to make a profit again.

"Because these brands have strategies in advertising, they are mainly aimed at a few online tmall stores. Generally, stores with excellent e-commerce team will be selected first and then recommended." "What other stores get is just some leftovers," said the dealer

The shortcut to electric shock is more like a detour

"Now, although listing has been going downhill for a few years. At that time, if we insisted on using our own brand as e-commerce, it would be an uphill process over time, and it would be more conducive to the continuous development of our factory. " At present, Qin Yue once regretted the "shortsightedness" at that time. "At that time, I was reluctant to spend human and financial resources. In the long run, in fact, we should build our own brand."

Now, Qin Yue has begun to shift energy, recruiting professional operators, focusing on building its own brand stores on platforms such as pinduoduo, "after all, the sales volume of brand authorized stores has become increasingly ugly."

In fact, this is regarded by many manufacturers as a shortcut to "electric shock", perhaps more like a detour.

"The so-called long-term success model with the help of brands is not a short-term success model for manufacturers. In fact, it is not a short-term strategy to capture the long-term success of brands." Deng Qi (not his real name), who has worked in Antarctica for many years, told zinc scale that manufacturers believe that as long as there is a brand effect, they can quickly maximize their profits. However, they actually use the money to buy authorization and mark. If they are used to develop their own brands on a down-to-earth manner, they may have more long-term benefits in the later stage.

"After all, in the interest field, there will be no forever friends. In fact, the relationship among the brand, suppliers and distributors is not as friendly and win-win as we imagine, but more of a game of intrigue. " Deng Qi said.

"Brand licensing itself is an effective 'multi win' mode, but success is based on the premise that quality control must be in place." Lu Pengfei, a senior e-commerce industry observer, once said in an interview that authorized manufacturers and authorized distributors of brands like Antarctica are easy to "cross the line" under the current situation. Previous overseas brands such as Playboy and Pierre Cardin have led to a big discount of their own brands.

Woodruff, the former chairman of Coca Cola, once said, "if my factory is destroyed by fire, if I encounter the world financial crisis, but as long as there is a Coca Cola brand, I will still stand up again the next day."

Indeed, brands have always been a powerful endorsement. For authorized manufacturers, the most important thing in OEM business is "licensing". Brand equity is the source of this business model. If the value of the source continues to depreciate and the accumulated word-of-mouth and feelings are constantly consumed, then naturally, manufacturers can only "sit on the mountain and eat nothing".

After all, this is an era of consumers voting with their feet. If the brand is not real, how can consumers pay for a small tag that lacks quality assurance?


  • Related reading

Sino US Game "Ignites" Textile And Clothing Industry May Be Affected Again!

Market topics
|
2020/7/25 19:15:00
0

Industrial Economy Returns To Normal Track

Market topics
|
2020/7/24 19:21:00
2

Why The 65 Year Old Textile Enterprises Have Been Prosperous For A Long Time?

Market topics
|
2020/7/22 22:12:00
0

The Fourth Generation Leader Of Mantero Launched Recycled Silk Fabric Resilk

Market topics
|
2020/7/21 19:31:00
0

Zero Inventory, Profit More Than 10%! This Kind Of Cloth Factory Against The Market, What Is The "Trick"?

Market topics
|
2020/7/21 13:52:00
4
Read the next article

Focus On Glasses Business, Japan Jins Give Up Its Accessories And Groceries Business

In addition, the stores of feel good's other businesses, such as lady's grocery brand hitch hike, will be in the