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Best World
20-03-2019, 12:52 PM. (This post was last modified: Yesterday, 11:34 AM by Boon.)
Post: #911
RE: Best World
Distribution Channel ONE (DC ONE) under the “Franchise Model”:
Producer (BWL China) =>
=> Retailers ONE (Owners & Operators of BWL Lifestyles Centers).
=> End Consumers ONE
 
Has it got element of “distributorship”? I would say so.
Can elements of franchising be created by incorporating “franchising arrangement” between “Producer” and “Retailer One” ? I would say so. 
 
Distribution Channel TWO (DC TWO) under the “Franchise Model”:
Producer(BWL China)=>
=> Wholesalers TWO
=> Retailers TWO (Owners & Operators of “salons, spas, beauty centers”)
=> End Consumer TWO
 
Has it got element of “distributorship”? I would say so.
Can elements of franchising be created by incorporating “franchising arrangement” between “Producer” and “Wholesalers TWO” ? I don’t think so. 
 _____________________________________________________________________________________________________
 

"DC TWO" evolved from the "Export Model. "The Franchise Model is created by ADDING “DC ONE” to “DC TWO” and NOT by REPLACING it. Can the combined business model as a WHOLE then still be considered as “Franchise Model” ? I don’t think so.
 
Then, why is it still being called “Franchise Model”?
 
Well....................
 
According to the Management: 
 
The term “Franchise Model” was adopted by the Company to refer to the Group’s distribution model for premium skincare Products in China for the purpose of reporting, and should not be interpreted narrowly. The term was used in replacement of the term “China Wholesale”6 due to its similarity to the Manufacturing/Wholesale Model used for “Aurigen” (全金) Products. 
 
The Franchise Model developed by the Group incorporates elements of authorized distributorship and franchise arrangements, where the Group sells the Products to the Franchisees, and the Franchisees on-sell these Products to consumers. The term “Franchise Model” was adopted as it describes the franchise elements of the arrangements, under which the Franchisees may only sell the Products (to the exclusion of other brands) and are permitted to use the Group’s trademarks in operating BWL Lifestyle Centers, as well as comply with the Group’s brand standards and operating manuals”.
 
It was call "CHINA WHOLESALE" before but later changed to "Franchise Model", to differentiate it from "Manufacturing/Wholesale Model" used for Aurigen Products.

WHY NOT call it “China Wholesale B” and "China Wholesale A" ?

=> B for BWL line of Product, and

=> A for Aurigen line of products

Then, why is it still being called “Franchise Model”?

 According to Management, the term "Franchise Model" was adopted for the purpose of reporting and should not be interpreted narrowly."

What do you mean by "not to be interpreted narrowly"?

Well, you have to ask the Management..................................
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.

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