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——【Foreword·】 ——»
In today's era of online shopping, consumers are keen to find trusted brands to ensure the quality of their goods. However, more and more brands are starting to "sell tags" in the market, which is deeply disturbing to consumers.
This article will reveal for you the four brands that "sell hang tags" and the reasons behind this phenomenon.
——【·Antarctic People·】——»
The transformation of Antarctic people is not only to save themselves, but also to be forced by the competitive pressure of the market and the reshaping of residents' consumption concept of branded clothing.
At first, as a brand focusing on thermal underwear, Antarctic won the favor of many consumers with its high-quality products and uniqueness in advertising.
However, with the rapid development of e-commerce and the intensification of competition, Antarctic people gradually feel the increase in sales pressure.
Faced with this situation, Antarctica decided to expand its product line, trying to cope with market competition and weaken risks through large-scale brand licensing.
Antarctica began to gradually expand its business scope to include footwear, home appliances and other varieties of clothing. However, this expansion strategy did not bring the expected benefits, but caused a lot of problems for the Antarctic people.
Due to increased competition in the market, Antarctica was unable to establish differentiation from other brands, resulting in weak sales and uncontrolled quality. In addition, the impact of the financial crisis has also put significant pressure on the operation of Antarctic people, and the company is facing an unsustainable dilemma.
In order to get out of this dilemma, Antarcticians urgently need an innovative model to restore the brand's influence. In the transition stage, Antarctic people resolutely decided to abandon the traditional production model and began to focus on brand trademarks and licensing.
They closed all the factories and no longer produced their own goods, but licensed the brand to manufacturers who had the ability and resources to sell clothes under the name of the Antarctic brand.
Although Antarctica has successfully won the growth of e-commerce sales through the tag authorization model, it has also triggered a variety of consumer demands. On the one hand, Antarctic people no longer directly produce products, but authorize hang tags to other businesses.
This model creates trust problems for consumers, with many complaining that the quality of the goods they buy is uneven, and they cannot confirm whether they are buying genuine products.
——【·La Chapelle·】——»
La Chapelle, once known as the "Chinese version of Zara", a women's clothing brand that swept the country in 2015 with its good reputation and unique design, was warmly sought after by young women.
At its peak, La Chapelle had nearly 10,000 stores, with a dazzling array of fashion styles, designers kept improving, creating a unique fashion experience for each consumer, and a good brand reputation made La Chapelle once synonymous with the fashion circle.
However, the good times were short-lived, and La Chapelle suffered a business crisis shortly after its peak, with market demand shifting and competition from e-commerce giants and emerging brands.
Faced with the reversal of the situation, La Chapelle urgently needed to transform and upgrade to resist external pressure, so it chose a seemingly shortcut path - brand licensing, which is the so-called "selling tags".
It is undeniable that the licensing business did bring certain economic benefits to La Chapelle. By authorizing the brand logo to be sold to the foundry, it reduces its own investment in the production process and inventory pressure, and reduces the operating cost of the enterprise.
At the same time, the foundry has been given the opportunity to endorse the famous brand, which provides a huge incentive for the foundry. However, La Chapelle's path to licensing the brand was not always smooth.
The authorized party ignores the control of product quality in the production process, and substandard or counterfeit and shoddy products occur from time to time, and some quality problems are even blacklisted by the national quality supervision department and local consumer associations.
This has undoubtedly further eroded consumer trust in the brand, and the brand image has been damaged as a result. Finally, in 2021, due to years of losses and fierce competition in the market, La Chapelle declared bankruptcy, and the once glorious brand fell.
——【Yu Zhaolin·】——»
In the late 90s of the last century, Yu Zhaolin embarked on an upward trend as a newly established thermal underwear brand. Its ACCP wool fleece and moisture-conducting and thermal insulation composite fleece are deeply loved by consumers and quickly become hot products in the market.
Behind this success, there is not only the endorsement of high-quality products, but also the wisdom and efforts of the brand operation team. However, with the intensification of market competition, Yu Zhaolin's sales power gradually weakened.
Seeing that fellow Antarctic people made a lot of profits by selling tags, Yu Zhaolin, the founder of Yu Zhaolin, resolutely decided to embark on the same path.
However, this decision broke Yu Zhaolin's consistent quality-based business philosophy, and also caused strong dissatisfaction and suspicion among consumers with his brand.
Brand is the business card of an enterprise, which embodies the integrity and conscience of the enterprise. However, Yu Zhaolin's contempt for brand image and credibility completely subverts this important concept.
When consumers buy products from brands, they trust and expect the behavior of brand owners. However, Yu Zhaolin not only deviated from consumers' expectations of the brand, but even hurt the interests of brand partners.
The voices of the victims were deafening, and consumers were furious. They accused Yu Zhaolin of doing whatever it takes for petty profits and turning a deaf ear to brand image and consumer rights.
It's even more important for companies that make mistakes to be open. However, Yu Zhaolin's response plan was helpless, and he only corrected his mistakes through public statements, lacking sincere action and sincerity.
——【·Hengyuan Xiang·】 ——»
Hengyuanxiang, as a Chinese wool spinning enterprise with a history of 100 years, has been well-known in the global market for its high-quality wool products.
However, with the increasingly fierce competition in the market, Hengyuanxiang is also facing the pressure of survival, so as to embark on the road of authorized OEM sales in order to obtain greater benefits.
As early as 1991, Hengyuanxiang began to try to cooperate with manufacturers to allow them to use Hengyuanxiang's trademark, this consortium model helped Hengyuanxiang relieve some of the pressure on production and investment.
However, the real promoter of the OEM model is the success of the Antarctic people. After seeing that Antarctic people made a lot of profits by selling tags, Hengyuanxiang also began to increase its efforts and gradually shifted its focus to the authorized OEM business.
With the rapid increase in the number of authorized OEM stores, some consumers began to have doubts about the quality of Hengyuanxiang's products. Some consumers claim that the quality of the products they buy from Hengyuanxiang is uneven, even lower than the standard of Hengyuanxiang.
This undoubtedly damaged the brand image of Hengyuanxiang and lost the trust of consumers. In order to solve this dilemma, Hengyuanxiang has taken a series of self-help measures.
However, more needs to be done to restore consumer trust. Hengyuanxiang should continue to strengthen system management and technical anti-counterfeiting capabilities, conduct stricter audit and supervision of foundries, and prevent the use of inferior raw materials to affect product quality.
In addition, they should also advocate corporate social responsibility and increase attention in areas such as environmental protection and public welfare, so as to enhance brand image and consumer favorability.
It is worth emphasizing that Hengyuanxiang should increase communication with consumers to understand their needs and opinions to better meet consumer expectations.
At the same time, by actively promoting brand culture and values, we can deepen consumers' awareness and understanding of Hengyuanxiang brand, and then enhance brand awareness and reputation.
——【·Arctic Velvet·】——»
In the past, Arctic Velvet was known as one of the conscientious brands with its high-quality products and good reputation, and was deeply loved by consumers in the thermal underwear market. However, with the fierce competition in the market, Arctic Velvet has also begun to follow the example of Antarctic people to sell tags to make profits.
As a plush toy manufacturer's transformation of thermal underwear brand, Arctic Velvet was once profitable, so it couldn't help but join the ranks of selling tags.
However, this decision has caused serious damage to the brand, and consumers have begun to express their dissatisfaction and disappointment with Arctic Velvet after purchasing poor quality products. As a result, brand trust has been weakened, and consumer trust has gradually been lost in the market competition.
In the face of this brand crisis, Arctic Velvet urgently needs to take effective measures to rebuild consumer trust. First of all, Arctic velvet needs to be fully open to the truth and show its true quality and value.
Secondly, Arctic Velvet should strengthen internal quality control and establish a more sound and strict product supervision mechanism to improve the stability and reliability of product quality.
In addition, brands should also actively respond to consumers' demands, communicate with consumers sincerely, and demonstrate a high level of concern and responsibility for consumer rights.
Not only that, in order to avoid the recurrence of similar problems, Arctic Velvet should also strengthen the implementation of the quality management system to ensure that the product quality is consistent and fully meets the expectations and needs of consumers.
This includes closer communication and oversight with production and supply chain partners to ensure that raw materials and manufacturing processes meet standards and quality requirements.
——【·Conclusion·】——»
To sum up, whether shopping in a physical store or online, we should pay attention to the quality of the product and have the ability to make independent judgments to avoid being misled by some unscrupulous merchants.
And for those companies that survive by selling tags, we need to pay more attention to their quality and service, rather than blindly pursuing the so-called "well-known brands".
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