Best World

[Boon]

Do they have the relevant know how and experience in owning and operating outlets under the retail model to qualify for the Franchise license in the first place? 

Not according to my interpretation of the rules

http://www.gov.cn/zwgk/2007-02/14/content_527207.htm

第七条　特许人从事特许经营活动应当拥有成熟的经营模式，并具备为被特许人持续提供经营指导、技术支持和业务培训等服务的能力。
　　特许人从事特许经营活动应当拥有至少2个直营店，并且经营时间超过1年。
　　
No wonder Chialc88 was scratching his head....ha-ha! it certainly appeared easy and quick for BWI to get one........

https://www.valuebuddies.com/thread-1033...#pid148911

[Boon]

Best World has posted its response.

http://bestworld.listedcompany.com/newsr...38SA.1.pdf

The article posted in Boon’s links has even more serious rumors about the company being involved in MLM and pyramid 拉人头 schemes.

In short, the company basically has not been involved in direct selling at all. A very clear line has been drawn. Once they are tied to it, that’s the end I suppose. What walks like a duck, sounds like a duck, looks like a duck is a...

There has been too many posts showing in this thread the China distributors who are showcased in their annual conventions. Taiwan personnel in China? (https://bwlgrace.pixnet.net/blog/post/20...f%e3%80%82) And lastly, the rate of growth of its cosmetic line is too explosive. Not sure there is any cosmetic product that grows at the same rate. Would be great if someone can show an example.

I am not sure why they don’t name their legal counsel which is one of the largest in China. If they are banking on technicality to say they are legal, might as well name the counsel. And they have quite squarely limit their legal liabilities from the franchisees. 

“The Franchisees would purchase the Products directly from BWL China instead of the third- party Import Agents, and would continue to be independent third parties (in relation to the Group) and take ownership of the Products upon purchase.”

I am personally still not convinced. Good luck to those vested. Each to their own.

The legal counsel is www.dentons.cn

I think.......

[chialc88]

I really hope that the situation is not so bad.

Franchises model is legitimate thou it's a short-cut.

By choice, the first step already taken and result shows that the decision is rewarding.
Why not focus on supervising the BWL lifestyle shops and Workshops?

If these "customers" is in trouble, you'll kana too.
Don't really want to shed your responsibility, right?



Watch the video and what's in your thought?

不忘初心, 逐梦前行!



宝贝加油!

[Boon]

商业特许经营备案管理办法

http://www.mofcom.gov.cn/article/swfg/sw...0378.shtml

第十五条　公众可通过商业特许经营信息管理系统查询以下信息： 

　　（一）特许人的企业名称及特许经营业务使用的注册商标、企业标志、专利、专有技术等经营资源。 

　　（二）特许人的备案时间。 

　　（三）特许人的法定经营场所地址与联系方式、法定代表人姓名。 

　　（四）中国境内全部被特许人的店铺分布情况。 

http://txjy.syggs.mofcom.gov.cn/

http://txjy.syggs.mofcom.gov.cn/manager/...id=6652565

According to clause 15(4), the public should have access to the distribution of all Franchisees “shops/outlets “ on this website, but I don’t seem to be able to find them - ha-ha !
Can anyone find them?

[Boon]

Is this the best time to buy into Best World?
By: 
Stanislaus Jude Chan
28/02/19, 03:29 pm
SINGAPORE (Feb 28)

https://www.theedgesingapore.com/best-ti...best-world

http://bestworld.listedcompany.com/misc/...a7eac7.pdf

http://bestworld.listedcompany.com/misc/Bestworld.pdf

[chialc88]

 Boon, not even looking at the price, so no intention to enter anytime soon.

As for the Franchise website,not sure it will be meaningful.

I had been monitoring the DS website as part of my google home page.
Completely waste of time.

[chialc88]

待人处事 
悯人之心 不可无 
- 不忘初心 Forgive and forget?



Just before midnight, HBC provided update of its numbers.
link

Extracted Q1 & Q2 as follows:
Q1. decline  cost of sales despite increase of revenue?
Export agent placed advance orders aka cost was significantly lower

Q2. what caused increase in distribution costs?
need to provide training, marketing event and support customer at 11 provinces and 1 municipality in China.
(I added: previously, these was performed by export partner. 
in fact, it used to be BWL received consultancy payment when conducting training.
With Franchise, BWL absorbed the export partner as it's headcount and pay for all training and marketing at lifestyle center. )

[Boon]

1. Statements in the Article:
“Best World says it has 28 franchisees spread across 10 provinces and one municipality in China. However, not a single one is listed on the company website.”
“Mr Huang declined to disclosethe names of the 28 franchisees and their exact store locations: "We don't share that. Now is not the right time. I'm in the blackout period. After results maybe we can talk more.”

Company’s Response:
At the time Mr Huang was queried regarding the Franchisees, the information on the locations of the Franchisees had not yet been made public on SGXNet. To avoid selective disclosure of information and in view of the expected release of the Company’s FY2018 financial results on 26 February 2019, Mr Huang declined to disclose the information on the Franchisees at the time.
Having considered the concerns raised in the Article in connection with the Franchisees, the addresses of the BWL Lifestyle Centers operated by the Franchisees are now listed on the Company’s website at http://www.bestworld.com.sg/franchise.html.
Further, the Company would like to inform shareholders that in carrying out its internal controls review, the Company’s internal controls consultant conducted physical inspections of ten BWL Lifestyle Centers operated by Franchisees, as well as performed certain agreed upon procedures in respect of Franchisees, including conducting background and qualification checks, reviewing sales and promotions records, inspecting inventory and compliance management systems, and performing contract and license reviews.
The Group’s management also periodically visit the Franchisees to physically inspect physical premises, and has contacted certain customers of Franchisees for various purposes
__________________________________________________________________________________________________________________________________________________________________________________

https://valuebuddies.com/thread-1033-pos...#pid151500

Under the Franchise Model:
1) Franchisees sell to End Consumers through BWL Lifestyles Centres (Franchisees act as Retailers, BWL Lifestyles Centres serve as Retail Outlets)
2) Franchisees sell to "Workshops". "Workshops" sell to End Consumers ( Franchisees act as Wholesaler, BWL Lifestyles Centres serve as Wholesale Centres ; "Workshops" act as Retailers and serve as Retail Outlets as well.

I take it that Franchisees "stores" should include "Workshops", hence locations of "Workshops" should be disclosed on Mofcom's website as well as required by regulation. Otherwise what is the point?

[Boon]

4 Statementin the Article:
“A search on Taobao that sorts skincare products by sales volume reflected a slower sales record for DR's Secret over the last 30 days, relative to its apparently smaller rivals like Clarins and Chanel.”

Company’s Response:
The Group does not directly conduct any sales transactions in China through online stores or social media, including Taobao. The Products are primarily distributed in China by Franchisees directly to consumers through BWL Lifestyle Centers in China.
__________________________________________________________________________________________________________________________________________________________________________________

The Products are primarily distributed in China by Franchisees directly to consumers through BWL Lifestyle Centers in China.

How true is this statement?

How about products distributed to end consumers via "Workshops" ?

[dreamybear]

 Boon, not even looking at the price, so no intention to enter anytime soon.

回头太难     Anyway, just to let you know quite a no. of brokerages has imposed trading restrictions on BW.




BEST WORLD: Investor gives his take on BT article
Published: 06 March 2019

Jason Wee, CFA, who has been a Best World International shareholder for several years, was Head of Asian Small Caps Research at CLSA, until he retired. He contributed this article to NextInsight.

More details on : https://nextinsight.net/story-archive-ma...bt-article