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The Management Way Of "Selling Bid" Mode By The Antarctic People

2021/1/25 12:56:00 29

NGGGN

The core point of this paper

1. The Antarctic model is a product of complex times, and brand licensing business is more like a concept of "tax" in the market;

2. In essence, both brand selling and channel selling flow advertising are monetizing the matching ability of consumers and commodities;

3. Although it is a brand, channel business is the essence of Antarctica. To some extent, it is the "comprador" of e-commerce platform.

Stocks have been falling continuously, and the suspected performance fraud has made them the "first melon of the new year" in the e-commerce industry.

On January 4 and 5, the stock price of Antarctic e-commerce fell to the limit for two consecutive days. Subsequently, a report on "definition and identification of earnings management and earnings manipulation" issued by Societe Generale Securities in 2019 was circulated on the Internet, pointing out the doubtful points of "XX e-commerce".

Several analysis articles hold that "XX e-commerce" refers to Antarctic e-commerce, the Gmv growth rate is too high, the tax revenue and the number of employees do not match the growth rate of revenue, the supplier and dealer overlap is high, which is suspected of "extracorporeal circulation".

On January 12, the Antarctic issued a 3000 word announcement to clarify the matter. However, the stock price of Antarctic e-commerce still went down to the lowest level of 8.91 yuan, down 63% from last year's high of 24.41 yuan. On January 15, the China Securities Regulatory Commission (CSRC) stated that it had brought the stock trading of Antarctic e-commerce into the key monitoring scope.

No production, no R & D, no design, no after-sales, and through the licensing of trademarks to suppliers to obtain the use fees, known as the "mark selling maniac" and "hangtag * *" are always a mysterious company.

In recent years, the business of Antarctica is in the channel of rapid development. Its brands such as Antarctica, Cartier crocodile and boutique Teddy have contributed more than 40 billion Gmv in 2020, with a year-on-year growth of more than 30%. The outstanding performance has attracted the participation of national social security fund, huitianfu, Taikang Life Insurance and other investors.

This article will focus on the "selling cards" business of the Antarctic, and answer three core questions

What is the magic of brand licensing? What is its essence? Why does capital escape from the Antarctic?

sink

In a 3000 word article in response to the "rumor", Antarctica called its business model "IP brand authorization", and compared with the brand authorization business of PVH group, the parent company of CK, they thought that the company's business model was reasonable and had broad prospects.

IP authorization at brand level is often divided into image authorization and trademark authorization. The former takes Disney as the most typical example. By using the popular cartoon image, the brand side can strengthen its position in the hearts of consumers; the latter, represented by kappa, Leto, McDonald's and other brands, transfers the right to use the brand to the partners with stronger regional operation ability to achieve win-win results.

These IP authorizations have similar characteristics: strong IP narrative ability, clear consumer awareness and clear coverage.

The brand authorization of Antarctica is totally different. Starting from the core category of underwear and underwear, it has successively covered washing machines and lampblack machines, insoles and thermos cups, sanitary napkins and detergent, health food and pet food.

Due to the lack of restrictions on brand coverage, the layout logic of categories is contradictory. The Antarctic summed up the brand output strategy as "national family big brand", while netizens jokingly called it "all things can be Antarctica".

The secret is hidden in the price tag of the Antarctic.

For example, the average price of a single sock is 1.6 yuan, underwear is 5 yuan, down jacket is 79 yuan, and washing machine is 298 yuan The price of popular products in Antarctica is only a fraction of that of brand goods, close to the price of other white brand goods.

In fact, before they became products of the Antarctic, most of them came from the market of white brand suppliers. The surplus capacity supply makes the market keep in the red sea state of low price competition for a long time, which is particularly prominent in the textile industry.

For these white brand products, the core value of Antarctica is brand awareness, which enables them to obtain differentiated competitiveness.

As in a strange city, the familiar Starbucks is often the business travelers in a hurry. When consumers' eyes are anchored in the middle and low price range of white brands, they will get a sense of certainty about the goods, and then have a higher probability of promoting transactions. This is called "exposure effect" in psychology.

In the huge low-cost consumer goods market, the trademark licensing mode represented by the Antarctic people has developed rapidly, forming four "brand kings" represented by the Antarctic, Yu Zhaolin, Hengyuanxiang and Arctic velvet. Some well-known consumer brands have also tried to sell the mark business to varying degrees.

Price itself is the core barrier to the "bid selling" mode.

In such a price range, it is difficult for self-employed brands, which are in charge of logistics, marketing and after-sales service, to cut in. In addition, the new brands in the field of consumption all choose medium and high-end or even ultra-high-end products, forming dislocation competition with the business market of Antarctica.

In the low price band, consumers are less sensitive to the price difference. The socks with 2.1 yuan and 2.4 yuan feel almost the same. In fact, the price difference is as high as 15%, and the difference of gross profit rate may be several times. If the brand empowerment is used and the mature operation and exhibition scheme is combined, consumers are often willing to pay for the more famous brands under the premise of low price, so as to achieve a higher brand premium rate.

Therefore, brands such as Antarctica and OEM manufacturers often adopt the split account mode, which extracts certain brand use costs without changing the product price range.

More and more traffic will enter the "standard selling" system. In 2020, the OEM Gmv of Antarctic e-commerce will reach 40 billion yuan.

But it is B2C e-commerce that makes the "Antarctic model" a phenomenal business event.

tuyere

The fuzzy brand attribute and low price positioning imply the strong channel attribute of the Antarctic people. Antarctic e-commerce wrote in its financial report business introduction that it was "committed to building a consumer goods giant based on e-commerce channels".

Instead of seizing the wave of e-commerce, the wave of e-commerce has created a business model for the Antarctic.

Traditional offline Liangyuan stores tend to purchase from wholesale markets or factories, and the demand for OEM is low or even imitations are rampant. The rapid development of B2C e-commerce has completely subverted the traditional marketing method. Two of the changes have far-reaching impact - "unlimited shelf" and "digital decision-making tool". The former has opened the era of attention economy, and the latter has made everything easier to quantify.

"Hangtag", become more attractive.

Brand licensing business brings about almost timely cash flow feedback, which not only attracts many well-known brands at home and abroad, but also makes e-commerce operators "Crazy". However, the short-term excitement brought about by growth was quickly replaced by the survival pressure brought by competition.

Trademark licensing itself is to help unlimited shelf and customer limited energy match, and the ultimate owner of matching right is actually the channel. Good matchmaking can create excellent experience and efficiency, but more importantly, it has huge commercial value. The essence of exhibition space and traffic business is the selling of matchmaking right.

There are no more than two types of goods that e-commerce platforms are willing to match: goods that are easier to match and items with higher economic value. The former allows users to stay on the platform, while the latter makes the platform profitable. The core pursuit of both is efficiency.

Under this guiding ideology, brand stores have good data assets and an operation team of * * and are able to afford and obtain more resources from the platform. However, the weak white brand products on the other side are easy to be reduced by the platform due to the difficulty in quality control, weak support system and low understanding of the platform.

The final result is the flow head, grass-roots businesses are quickly replaced by professional regular army. The data shows that the top 1% of the merchants on a certain head platform contributed 40% of the Gmv of the platform.

The head of the industry environment, specialization, also occurred in the Antarctic human body system.

According to the financial report of Antarctic e-commerce, the total number of cooperative suppliers is 1113, and the main cooperative suppliers are about 500. However, the total number of cooperative distributors has reached 4513 and the number of authorized stores is 5800. Professional e-commerce operators are gradually becoming an important force for the Antarctic people.

In the highly Red Sea and specialized e-commerce store competition, brand, store, selection and operation are all related to business profit and loss, which makes the demand for leasing of brands and stores continue to increase.

A number of e-commerce operators told equalcean that it was becoming more and more difficult for new brands to break through. Especially in the field of clothing, if the supply chain system of private brand does not have the blessing of operation God, it is almost impossible to rise suddenly based on the previous channels. Although there are some new brands with high price such as ubra in underwear market, the competition of middle and low price is becoming more and more boring.

"Boring to" full screen "are" OEM "products," one of them complained.

Comprador

The multiple characteristics of brand authorization make it more like a kind of "brand tax".

The brand side does not directly participate in the creation of "value", only extracts certain exchange value in the circulation link;

With the change of the market environment, it has gradually produced a certain "mandatory", which has become a necessity for many small and medium-sized businesses to continue their business;

It has significant external effects, which will be apportioned to the consumers, and will virtually raise the platform competition cost.

"Antarctic people" is like a super large toll station, charging "toll" for upstream and downstream manufacturers who have the demand of "shortcut". Therefore, the manufacturers reduce the driving cost on the "main road", that is, the demand for purchasing traffic from the platform.

Why should we acquiesce in the existence of "Antarctic people"?

The core reason is that "Antarctic people" are still bringing increment to the platform for the time being.

How to make the interests of the channel become a "art" in many cases, especially in the environment of gradually stable channel business model. When the industry itself falls into fierce competition, the channel's discourse power often reaches the peak. Killing red eye players, throwing money, losing money to seize the market, often occurs in the market.

The brand authorization model represented by the Antarctica is more in line with channel demands.

Many manufacturers with brand authorization mode provide ammunition for professional e-commerce operators. It is the existence of these professional operators that keeps the platform in a highly competitive state.

E-commerce operators and platform giants seeking for incremental traffic continue to push up the price of channel traffic. Take a women's online shop as an example, the gross profit rate of a single piece was originally about 80%, and the net profit rate after deducting the promotion cost was less than 5%. Most of the items were taken away by various promotion expenses.

In a sense, the brand licensors of Antarctica play the role of comprador. They cover areas beyond the reach of platform empires and consolidate their "tax" sources.

Although the "comprador" is also extending along the marketing industry chain, eventually forming a grand "comprador Empire", it still can not escape the dependence on the platform.

future

There are some barriers to the Antarctic model, but they are by no means comfortable.

In the absolutely competitive Red Sea market, the scale business with ultra-high gross profit and ultra-high net interest rate is often difficult to last for a long time. The platform hopes to directly obtain more customers' traffic input, upstream and downstream customers hope to play their own brands, while the friends covet its leading industry status, and everyone is waiting for the opportunity to eat up the business of Antarctica.

First of all, many investors believe that the decline of Antarctic e-commerce stocks is closely related to the changes of rules such as deepening the recommendation algorithm of the platform and promoting the evolution of information. By deepening the traffic efficiency, the platform has eroded the brand matching ability of Antarctica. According to Shen wanhongyuan, the recent growth rate of Gmv in Antarctica has been affected, and then transmitted to the secondary market.

An e-commerce expert told EEO equalorocean that the change in the recommendation system of the head e-commerce platform is not conducive to the players playing the game of Antarctica in essence. Whether or not they can grow their own game outside the channel flow remains to be seen.

Secondly, there are more than 1000 supply chains of Antarctic e-commerce cooperation, which directly affects the difficulty of quality control, and has been repeatedly reported in the media due to quality problems. The business model of "selling bid" is controversial. When the company grows into a leading enterprise in the industry, how to make the society understand and accept its business philosophy is a difficult problem for the Antarctic people.

Finally, under the wave of consumption upgrading, how to open up more brand space and truly transfer from channel brand to consumer brand with brand premium will also affect the company's future imagination.

As long as the dividend of China's supply chain is not lost, the huge sinking market is still full of vitality. Even if the Antarctic people may encounter some problems at present, "tag" business still has its development space.

However, we should think more about how to let the really small and beautiful enterprises under the "tag" regain their living space, instead of being completely kidnapped by efficiency. Although this has been a topic in the ancient Internet era.

thank:

Due to space limitation, I can't attach all the contents. However, I would like to thank many professionals for their valuable opinions and rich cases in the process of writing this article. I would like to express my special thanks (regardless of rank): Shuimu Zhiqiu and Fang Zhiwei, experts in manufacturing supply chain, Cheng Xiaohua, operation director of an e-commerce company.


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