The products of big brands not only have one product, but may also involve multiple categories of products. For example, Adidas not only sells shoes, but also sells clothing, bags, accessories and other products. Just like the protagonist we are going to talk about today, the Antarctic man, made money by selling trademark hangtags after he became famous.
The earliest impression of Antarctic people should be thermal underwear. At that time, because Antarctic people were of high quality, low price, and very comfortable to wear, it became the memory of many people born in the 1970s and 1980s. However, in recent years, a large number of people have appeared. There are various Nanjiren brands, big and small, including car seat cushions, thermos cups and even diapers. The quality is also uneven. Are these all produced by Nanjiren itself?
No, no, all Antarctic products are not produced by themselves. Many products just bear the Antarctic trademark and brand.
In other words, the only authentic "Antarctic" thermal underwear we bought may have this label. Antarctic E-commerce’s 2017 annual report shows that through brand licensing and e-commerce services, Antarctic E-commerce’s net profit was 534 million yuan. That is, five years ago, Anjiren gave up its physical stores and factories and did not produce any products. The main profit was from trademark hangtags.
In fact, the Nanjiren brand was founded in 1998 by its founder Zhang Yuxiang. In the early days, Antarctic not only had its own brand, but also its own factory and sales channels. Soon after, Nanjiren quickly occupied the Chinese thermal underwear market through overwhelming advertising and inviting Ge You and Andy Lau to be its endorsers. But in 2008, the financial crisis broke out and the textile industry was affected. The underwear product market became seriously homogenized. Antarctic's market size was squeezed and production capacity was overcapacity.
At this time, Zhang Yuxiang imitated the "brand licensing" business model of his peers and closed the factory he had run for ten years, leaving only the label "Antarctic Man". Started to charge brand licensing fees from manufacturers, entrusted sales business to dealers, and implemented asset-light operations.
Data shows that as early as 2018, Antarctic’s net profit was close to 900 million, and this number is still rising. This shows that it is easier for Antarctic to make money by selling trademarks.
Brand licensing has actually existed for a long time, and many international brands are adopting this operating model. However, they will strictly check the qualifications and product quality of authorized companies. After all, this is about the reputation of the brand and whether it can survive in the long term. But on the Antarctic side, as long as someone is willing to pay, they will give authorization, and even provide relevant certificates when relevant departments come to investigate. This has directly led to the uneven quality of products on the market and the deterioration of brand reputation. Antarctic products have been included in the regulatory authorities' blacklist of unqualified products many times.
For those Antarctic people who make money from trademark hangtags, are you still buying their products? Trademark is an important intangible asset of a company and a symbol of the brand. If Nanji people continue not to strictly review the licensors, I believe the brand will not go far.