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Most textile cos ignorant of franchise law - Survey
Jun '08
The new law regarding franchise operation was put into effect from May 1, 2007. Under this law, interested Chinese enterprises must apply for the franchise operation to the local department in charge and can kick off their business only after approval.

However, it was noted that by April 16, 2008, only 19 garment companies applied for this scheme.

Thus, studies revealed that 42.86 percent of Chinese clothes enterprises were completely unaware of this law. Meanwhile, 57.14 percent of apparel companies knew about this policy.

Analyst say that, the weak interest attracted by franchise law was mainly because majority of the industry did not know or had very little information about this procedure.

Nevertheless, about 14.29 percent of industry biggies believe that, most enterprises were worried about high costs and several preferred to disclose business information fully. Such key concerns have also kept textile players from entering this operation.

Fibre2fashion News Desk - China

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