At the end of the last century, the concept of “thermal underwear” began to rise in China. With the intensive advertising and the endorsement of “king of heaven”, the slogan “Antarctica is not afraid of cold” has been deeply rooted in the hearts of the people. In only two or three years, Antarctica has leapt to the forefront of China’s thermal underwear brands.

at that time, it could be said for a long time that ordinary people could have a warm underwear of Antarctica. In the past 20 years, whose family could still have a product made by Antarctica was worth showing off –

after all, nowadays, the Antarctic people no longer produce underwear, they are just tag wholesalers. Netizens even joked, “everything can be Antarctica, maybe only the tag is true.”

since 12 years ago, Antarctica has cut off all self-supporting links in production and sales, leaving only the word “Antarctica” as “brand authorization”; now, it has completely transformed into an e-commerce service enterprise, and renamed it “Antarctic e-commerce” in 2015, borrowing Xinmin technology to land on the SME board.

some people say that it is not long-term for Australians to make money by buying trademarks; others believe that this mode provides a lot of value-added services and can create opportunities for small and medium-sized owners. The controversy is inconclusive, but in the capital market, the performance of Antarctica is eye-catching.

since its successful listing in January 2016, the stock price of Antarctic e-commerce has risen by more than 290%, and the market value has nearly tripled. In particular, since this year, the stock price of Antarctic e-commerce has risen by 70%, with a market value of nearly 51.5 billion yuan.

after graduating from East China University of political science and law, Zhang Yuxiang first worked in state-owned enterprises for several years. He was not satisfied with the status quo, so he went to the sea to start a clothing business in 1997.

at that time, the clothing brand co founded by Yu Zhaolin, a Shanghai native, launched a new product – thermal underwear. This new underwear, known as light, thin, soft and warm, quickly became popular in the market.

after doing market research, Zhang Yuxiang found that the traditional wholesale distribution vitality was insufficient, and the winter sales season of thermal underwear was short. It was not easy to quickly separate the market cake from other large factories.

for this reason, Zhang Yuxiang has come up with a way: let the dealer inject the payment in advance, and guarantee to provide the product and brand. In his opinion, it is better to borrow the chicken to lay eggs than to do it by oneself. In this way, not only can the ability of resisting risks be improved, but also, together, it is a win-win situation. As a result, he began to hold business fairs, solicit dealers and raise funds.

in 1998, Zhang Yuxiang invested the raised 3 million into the production of warm underwear for Antarctica. At the beginning of his business, in addition to building his own factories and channels, Zhang Yuxiang also attached great importance to building a brand, which laid the foundation for his later business model transformation.

on the product side, Zhang Yuxiang chose to cooperate with foreign advanced technologies. On the one hand, he studied the introduction of high-tech materials into thermal underwear; on the other hand, he invited well-known fashion designers to design other products including down jacket; on the marketing side, he signed contracts with ge you, Xu Fan, Liu Dehua, Yuan Yongyi, Haiqing and other first-line stars, who spent huge advertising expenses on CCTV and other media Name degree.

it has been proved that these methods are effective. According to the public information, by 2004, the total sales volume of Antarctica reached 1 billion yuan, and the fixed assets of enterprises exceeded 300 million yuan, and entered the textile fields of warmth, leisure, down, sweater, home textile and so on.

during the financial crisis in 2008, China’s textile industry suffered a heavy setback. Manufacturers’ orders were less and less, and the prices were getting lower and lower. However, labor prices were gradually rising. At this time, the Antarctic is also in trouble.

he began to carry out radical reform again, cutting off the self-supporting links of the production and sales end of the Antarctica, selling all the factories, retaining only the brand of “Antarctica” and turning to “brand authorization” business.

according to Zhang Yuxiang’s explanation, this is a business model of “supply chain and e-commerce services based on brand authorization”. In other words, the company provides value-added services such as R & D design, quality control, flow management, data analysis and application to suppliers and dealers according to their needs and business development needs, so as to enhance the competitiveness of the entire Antarctic ecological community.

“it not only retains the core value of the Antarctic brand, but also realizes the precise allocation of market, goods and people and the reasonable division of resources, upgrading from single clothing brand operation to industrial ecological service.” Zhang Yuxiang believes that the most important thing is to solve the pain point of overcapacity of traditional textile enterprises.

according to the financial report, in 2019, Antarctic e-commerce realized a revenue of 3.907 billion yuan, a year-on-year increase of 16.52%; the net profit attributable to shareholders of listed companies was 1.206 billion yuan, with a year-on-year increase of 36.06%. Among them, the gross profit margin of comprehensive brand service business is as high as 93.36%; in addition to the brand authorization business of dealers, the revenue of OEM business of Antarctic e-commerce is as high as 1.305 billion yuan.

it is worth noting that the total number of employees of Antarctic e-commerce in 2019 is 646, but the annual income is 3.9 billion yuan, which means that its per capita output value is about 6.037 million yuan.

according to media reports, the price of two jeans produced by a clothing enterprise owner in tmall’s flagship store is 79 yuan, but after the tag of the Antarctic is pasted, the price of two jeans can be sold for 129 yuan in the exclusive shop of the Antarctic. In addition to the trademark fee of 8 yuan, you can still earn 42 yuan, which businesses are willing to do.

what’s more, the threshold for the brand authorization of Antarctica is not high. Taking tmall as an example, the merchants only need to pay a deposit of 100000 yuan to become a supplier, and then pay the corresponding fees according to the number of tags.

according to the financial report in 2019, the total number of Antarctic e-commerce cooperative suppliers is 1113, including about 500 major cooperative suppliers; the total number of cooperative dealers is 4513, and the authorized stores are 5800. Categories from underwear, home textiles, to electric toothbrush massage chair, involving all aspects of family life.

at present, Antarctic e-commerce has more than one brand of Antarctica. Its traditional logo brand and IP brand are parallel with CP brand, covering such brands as Antarctica, Antarctica home, Cartier crocodile, Palladio, pony collection, etc.

online, it mainly covers Alibaba, Jingdong, pinduoduo, vipshop and other e-commerce sales channels; offline, it mainly focuses on traditional sales channels such as stores, shopping malls and supermarkets. Comparatively speaking, online is still the main marketing channel of Antarctica at present.

in 2019, taking the family as the scene, Antarctic e-commerce has about 100000 product links in Ali, Jingdong, social e-commerce, vipshop and other e-commerce channels. The company’s Gmv in various e-commerce channels reached RMB 30.059 billion, up 48.92% year on year. Among them, Gmv of Antarctica brand was 27.138 billion yuan, accounting for 88.9% of the company’s overall Gmv, with a year-on-year increase of 52.86%.

it is worth mentioning that the Gmv realized by the “main social e-commerce channels” of Antarctic e-commerce has reached 3.965 billion yuan, with a year-on-year increase of 124.89%, accounting for 12.97% of the total Gmv, which is close to Jingdong (15.32%), becoming the third major channel.

according to year-on-year growth, all-weather technology found that in 2018, Gmv contributed by “main social e-commerce channels” was 1.763 billion yuan; in 2018, Antarctic e-commerce financial report clearly stated that pinduoduo’s contribution to Gmv at that time was only half of that of Jingdong (3.56 billion yuan), but the year-on-year growth was as high as 153%. This also means that the “main social e-commerce channel” of Antarctic e-commerce actually refers to pinduoduo.

it can be seen that in the past two years, Antarctic e-commerce has begun to make efforts in social e-commerce and switch to the platform, and the benefits are obvious. There is a great trend to catch up with and surpass the traditional e-commerce platforms.

due to the lack of control over quality control in the brand authorization mode, Antarctica has been frequently complained about in recent years. According to the statistics of southern weekend, in 2018, Antarctica was listed 14 times on the national quality supervision department and local Consumer Association’s unqualified product blacklist, involving silk quilt, underwear, cotton clothing, children’s clothing, electric push scissors, curler, massage stick and other products.

behind the extensive management, the traditional e-commerce platform has become more and more strict in the management of Antarctic people. According to Wumian financial report, currently, the Antarctic can no longer provide the brand authorization of Jingdong and Taobao.

the change of platform policy forces the Antarctic e-commerce to adjust its strategy and switch to the platform, and even the authorized categories are gradually tightening. According to the above-mentioned media, Antarctica has cancelled many categories that can be authorized by brands before, such as home textiles, children’s wear, underwear, etc. currently, only adult clothing can be opened for authorization. However, Antarctica “can still do authorization on pinduoduo.”.

in a survey meeting held in May this year, the Antarctic e-commerce side also revealed that “in the past, the company established a social e-commerce business group for all categories, but now it is divided into several social e-commerce business groups according to categories, and the organizational structure is more refined.” It is not difficult to see that the Antarctic e-commerce will continue to cultivate its determination to make more channels. Besides, tiktok will also develop to the platform of jitter and Kwai, according to Zhang Yuxiang. The company will build new supply chain system and new anchor matrix in these websites combined with the demand of live broadcast products.

some people say that Antarctica is a magical company, which is not only reflected in the extraordinary business model. Combing the relationship chain behind the Antarctic, we will find that this is a huge “family business”.

it can be seen from the 2019 financial report disclosed by Antarctic e-commerce that the list of other related parties is as long as three pages, most of which are enterprises controlled by actual controllers, close relatives or directors of the company.

among the suppliers of harvesting goods / receiving labor services disclosed by the Antarctic people, many of them are also listed in the list of Antarctic e-commerce suppliers selling goods / providing labor services. Among them, 9.1665 million yuan was paid to ge Mi enterprise management (Shanghai) Co., Ltd. in the name of “accepting labor service” in 2019, and RMB 348900 yuan was collected in the name of “other business income” in the same period.

such things happened in Shanghai Lanmei e-commerce Co., Ltd. (hereinafter referred to as “Shanghai Lanmei”). According to the financial report, Shanghai Lanmei is a company controlled by the spouse of Lu lining, director of Antarctic e-commerce.

the company was established in August 2013, and its operation and cooperation platforms include Jingdong, vipshop, Suning e-buy, No.1 store,, etc. at present, it mainly sells underwear clothing and baby clothes of the Antarctic brand. The company is the first sales holder of Jingdong underwear category in a single store; it won the first sales of Jingdong pop platform in 2014; vipshop’s underwear category ranked first in sales for two consecutive years, and children’s clothing category Top three sales for two years.

from 2013 to 2015, Lu lining served as the supervisor of Lanmei in Shanghai and also served as the director of Antarctic e-commerce. Later, she resigned from the position of supervisor in 2015.

according to the disclosure of Antarctic e-commerce, the relationship between the company and Shanghai Lanmei is agent sales and entrusted service contract. The main contents are as follows: the Antarctic e-commerce delivers the purchased “Antarctic man” brand products to Shanghai Lanmei, and sells them in the name of hailanmei. The specific sales price and channel are determined by Shanghai Lanmei and are responsible for its own profits and losses; Antarctic e-commerce is responsible for its own profits and losses according to the actual needs of Shanghai Lanmei’s consignment business At the same time, Shanghai Lanmei agreed to supervise the collection account of Antarctic e-commerce.

in 2019, Shanghai Lanmei paid 22.1 million yuan of brand service fee to Antarctic e-commerce. Based on 4.57% of the brand rate (revenue from brand service fee / Gmv) in 2019, the company’s online Gmv should reach 480 million yuan; however, in the year of 2019 disclosed by the company