7th May 2014 13:23
LONDON (Alliance News) - JQW PLC Wednesday said it has launched its first franchise arrangement in Chongqing City, China, to help support the roll-out of its new sales agencies.
The Chinese business-to-business e-commerce company said that, as planned, it launched the arrangement using some of the cash it raised during its AIM admission in December 2013.
Under the franchise system, JQW will provide financial support to sales agencies to acquire computer systems and to refurbish offices, in return for a lower percentage sales commission. The company said it believes that the system will help it to expand more rapidly
In 2013, the company's sales generated from sales agents increased by 88% to RMB388.0 million and comprised some 79% of total sales, whereas direct sales increased by 29% to RMB105.1 million.
JQW's target is to have at least 60 sales agencies in place by the end of 2015, compared to 35 sales agencies currently.
"Going forward, the 'franchise' arrangements will play an important and cost effective role in attracting new fee paying members to the 197,000 subscribers to our Sheng-Yi-Tong membership packages as of December 31, 2013," Chairman Cai Yondde said in a statement.
JQW shares were down 1.4% to 70.00 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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