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Does Anjiren's arbitrary licensing of trademarks to others without regard to quality control issues constitute "not cherishing feathers"?

Whenever I see a lot of bad reviews saying "not authentic" in the product reviews of Taobao's official flagship store, the editor scoffs, thinking that since they are all official flagship stores, how can they buy products of poor quality? What about good fakes to damage your own brand? These negative reviews are all caused by competitors! Later, the editor learned that there is such a thing as trademark and brand authorization. In this way, it is possible to sell products with poor quality under the genuine brand name. Nanjiren is what we are going to talk about today about "trademark authorization". Brand side, what is the specific situation? Keep reading.

It turns out that at the beginning of the month, in order to optimize the company's business layout, Anji E-commerce announced that it planned to cooperate with Shanghai Chaolin Consulting Management Center, a shareholding platform of the core team of offline retail projects, and related natural persons Zhang Yuxiang and Zhang Yun** *Tongren invested to establish a company, mainly engaged in offline physical retail chain business.

In fact, Antarctic e-commerce completely abandoned physical retail and direct sales as early as 2015. Last year, "Southern Weekend" reported on Antarctic e-commerce. This company no longer produces any goods and only sells hang tags. As long as you pay money, it can authorize it to you, and it will also provide you with advertising space and event registration. If there is an investigation, They will provide you with proof to avoid penalties.

In other words, of the Nanjiren underwear you buy, only the tag may be authentic, and he doesn’t care about the production and sale of the product.

No wonder the regulators are confused now that they are back offline. They want Anji E-commerce to clarify whether there is horizontal competition and whether the controlling shareholder has violated the relevant commitments on horizontal competition.

The core focus of this reply letter is that there is a certain degree of overlap in the business scope of the listed company and the target company, but they belong to different industries. The company mainly provides brand management and brand licensing services and is not directly engaged in products. In terms of business operation, the target company is mainly engaged in the offline retail business of products. The main business and main products are different or similar, and there is no overlap in the main suppliers.

Judging from the equity structure of the target company, this company is completely 100% "original product" made by Antarctic people. Mr. Zhang Yuxiang is the actual controller of the company, Ms. Zhang Yun is a close relative of Mr. Zhang Yuxiang, and Shanghai Chaolin Consulting Management Center (Limited Partnership) is the shareholding platform of the core team of offline retail projects.

In the reply letter, the listed company also disclosed that the target company intends to mainly engage in offline physical retail chain business. Its main business is commercial retail, mainly using its own retail stores as the carrier, and operating in the stores. It offers stylish, attractive and high-quality products, and sells coffee, milk tea, snacks and other simple meals in the store, providing a one-stop offline retail store with a social scene.

Although many fashion brands have moved towards "lifestyle", such as Tiffany, Hermès, Dior and other big brands have their own coffee shops. But in terms of products and positioning, it is not difficult to find that Antarctic is targeting MUJI.

The target company will use "Antarctic Selection" as its store sign, mainly selling clothing and accessories, 3C digital products and other products, including underwear, down jackets, men's clothing, women's clothing, shoes, accessories, 3C digital products, etc. .

According to the current plan of the target company, there is little overlap between the listed company’s authorized suppliers and the offline channel suppliers that the target company plans to cooperate with, and it is expected that the overlap will not exceed 20%.

Nanji E-commerce also specifically emphasized that the target company’s proposed business will not only not detract from the listed company’s main operating income, but will directly increase the listing by opening up new sources of income and growth points based on the pricing and payment arrangements of the “NANJIREN” brand licensing fee. The company's main operating income.

Everything can be done by Antarctic people,

The trademark sells for 900 million a year

In your mind, Antarctic people may sell underwear, but in fact, " The product lines of "Antarctic People" will not be limited to clothing. As long as merchants are willing to pay the licensing fee, everything in the world can be "Antarctic People".

To put it naughtily, Antarctic people do not produce goods, they are just carriers of signs. At the same time, the products produced by Antarctica are getting cheaper and cheaper, and the quality seems to be getting worse. The vast majority of consumers said they had no idea about this situation.

If you don’t believe it, you can try the all-purpose product. Fat removers, foot baths, baby warmers, and car seat cushions are all genuine products sold by Anjiren.

In 2018, Antarctic e-commerce achieved operating income of 3.353 billion yuan, a year-on-year increase of 240.12%, and a net profit of 887 million yuan.

In terms of products, Anji E-commerce’s brand comprehensive service business revenue is close to 900 million yuan, a year-on-year increase of 44.74%, and the gross profit margin is as high as 94.11%; the total revenue of dealer brand licensing business is 33.8555 million yuan, with a gross profit margin higher, at 96.52%.

The essence of the company's brand comprehensive service business is to cut off the self-operated links on the production and sales ends and transform into a "brand licensing" business model. Under this model, the traditional clothing production and sales links are undertaken by authorized OEM manufacturers. Anji e-commerce provides brand services to authorized manufacturers and charges a certain fee, thereby achieving light asset operations.

Currently, Antarctic e-commerce owns a series of brands such as Antarctic, Cardile Crocodile, Classic Teddy, and PONY.

The brand is bad,

Will anyone still buy it?

According to Antarctic E-commerce’s 2019 semi-annual report, the company’s operating income is 1.634 billion yuan, and it is expected that this year Its revenue will exceed 3 billion, which was unimaginable for a former thermal underwear brand.

To continue this high growth, Antarctic e-commerce must continue to tap the largest number of OEM customers. Its full-brand authorized manufacturers increased from 70 in 2012 to 866 in 2018.

As of the first three quarters of 2019, the company has 985 cooperative suppliers; 4,321 cooperative dealers and 5,559 authorized stores.

Although brand licensing is not uncommon, and many international brands will also adopt this form, generally brand licensors will strictly control the qualifications of the foundries and the quality of the products, because in a sense the brand is A company’s endorsement of a product.

Nanji people only license to partners, but they never care about the quality of the licensed brands. Under such a business model, Antarctic's reputation is getting worse and worse, and product quality is not guaranteed at all.

As a result, various e-commerce platforms are full of consumers’ doubts and dissatisfaction with the quality of “Nanjiren”. Some consumers said that customer service mostly handles returns and refunds, while for quality flaws, customer service mostly However, consumers were asked to change the reason for return to "no reason within seven days" instead of "quality issues".

On the other hand, Nanjiren has been on the blacklist of unqualified products by the national quality supervision department and local consumer associations many times since 2018, ranging from silk quilts, underwear, cotton clothing, children's clothing, jackets to electrical appliances. Clippers, curling irons, and massage sticks are all on the quality inspection blacklist.

In the short term, its business model has been successful; in the long term, if it only relies on the reputation and feelings accumulated in the past, but has lax quality control, poor brand management, casual authorization, etc., it will This will one day paralyze the brand, and now it is overdrafting the brand value.

Now the "Antarctic Selection" suddenly pops up, perhaps to get rid of the "Antarctic" products of small workshops. But even if it is produced by Anjiren "original factory", will consumers buy it in this way?

"Nanjiren" is almost a well-known brand of thermal underwear with a good reputation. If it releases any thermal products, the first impression it will give consumers will not be too bad, and they will also go for the brand. Give it a try, and Ying's brand licensing operation regardless of product quality can be said to be a show off. If it continues like this, will it "break a good hand"? For more trademark information, welcome to visit Bajie Intellectual Property Trademark Transfer Network!