The Odd Men'S Clothing Was Repeatedly Unqualified &Nbsp, And The Franchisee Was Handicap.

The SFC will review the first application of Fujian's Limited by Share Ltd today.

Fujian is a company that runs the public.

Product production depends on outsourcing.

In the operation of Fujian prospectus, outsourcing of low value-added production is outsourced to suppliers.

Although the company has established a strict screening mechanism and procedures for screening suppliers, the output, quality and production cycle of products are limited by factors such as the supplier's production capacity, processing technology and management level.

With the growth of product sales in the future, Fujian needs to find more suppliers who meet the requirements of the company. If the supplier management is unable to meet the development needs of the company, it may lead to a delay in product supply or a decline in the quality of products, which will adversely affect the company's business performance.

The quality of products has been checked out many times.

Fujian has a "bad record" on the spot checks of product quality.

In the 3 quarter of 2010, in the provincial supervision and spot checks of T-shirts in Fujian, the two types of T-shirts, 175/92A and 180/96A, were found to be unqualified in the Fujian Fuzhou branch of the Limited by Share Ltd.

Coincidentally, in the third quarter of 2009, in the Fujian provincial product quality supervision and spot checks, the Fujian casual Qingyang Jinjiang Yingbin branch model "170/76A" casual pants were also detected that the product quality was not qualified.

Franchised mode challenged

Fujian's regional sales model mainly adopts the combination of Direct stores and franchised stores.

As of June 30, 2011, a total of 286 stores, including 179 stores, accounting for 62.59% of the total number of stores.

Franchisee's contribution to Fujian's performance has also increased year by year.

During the reporting period, the proportion of affiliate sales to main business income was 30.82% in 2008, 47.92% in 2009, 57.93% in 2010, and 58.64% in 2011.

From this we can see Fujian's dependence on franchising mode.

But the franchise mode is a double-edged sword for the company.

As the number of franchisees continues to increase, if management training level can not match the growth rate of franchised stores, there may be a drop in the management level of some franchisees, which will adversely affect the company's brand image and business performance.