After the conclusion of the Closer Economic Partnership Arrangement (CEPA), various trades and industries have started to look at the way forward.
In the garment industry, opportunities abound. For people who wish to start their business, franchising, i.e. joining an operation with an existing brand, is an easier option. As for those who already have garment manufacturing factories, whether in Hong Kong or the mainland, they can consider building their own brand.
Building Own Brand
Joining a Franchise
Disadvantages of Joining a Franchise
To take advantage of CEPA, players in the garment industry seeking business expansion should decide on whether to build up their own brand or to join a franchise. Such decision should depend on their circumstances, the terms of the contract, and various other issues related to operation. Joining a franchise is an arrangement to the benefit of both parties. A potential franchisee should be aware of the characteristics of the franchise operation as well as the advantages and disadvantages involved. Both parties in a franchise arrangement must maintain good communication and try to understand each other in order to ensure smooth cooperation and mutual benefit. Franchise is a profitable business model creating a win-win situation for both the franchiser and franchisee. For the franchiser, business can be expanded at relatively low cost. For the franchisee, it is not necessary to go through the process of trial and error or start a business without any guidance.