Rapid Development Of Direct Selling In China

A Chinese direct selling network expert pointed out that 2008 is the fast development year of direct selling enterprises, and it is a competition year of layout market.

According to China Industry Research Report network, the global direct selling market (excluding mainland China market) is currently 700~800 billion.

It is estimated that the total scale of direct selling in mainland China will reach 800~1000 billion by 2010, and the growth rate of direct selling industry will reach 60% in 2008.

Since the beginning of the last century, the direct selling mode was born in the United States. After decades of development, this new sales mode has become one of the mainstream modes of world retail business.

In the early 90s of last century, the direct selling industry began to appear in China. Then, from the initial opening up to the later tightening, until completely banned, and then gradually liberalized, the policy uncertainty and tremendous pressure of reform made the direct selling industry gradually adapt to China, and created a direct selling mode with Chinese characteristics.

Direct marketing "aliasing" leads to the introduction of the law

At the beginning of 1990s, a sales mode of products and services provided to consumers by Direct Selling Company through face-to-face sales was landed in China. In November 14, 1990, the first officially registered company in China, the Sino US joint venture Guangzhou AVON limited, was established, and the direct selling industry was formally incorporated into the category of business administration.

From then on, whether foreign capital or local enterprises, whether old or new Direct Selling Company, quickly gathered in China's fertile land.

Due to the lack of management, in the mid 90s of last century, China's direct selling business entered a period of flooding and disorder. The number of Direct Selling Company was numerous, and the system was chaotic. That is, during this period, "illegal pyramid selling" became more and more intense. The original direct selling industry was also accompanied by the media's continuous propaganda against illegal pyramid selling, and it was doomed to escape.

In English, "direct sale" and "pyramid selling" are the same word. At one time, legal persons compete to expand, while illegal ones follow the wind and confuse the public.

During this time, the most chaotic situation appeared in China. It was marked by the promotion of the famous B plan (the win-win system of the rat society system) by the Tibet Dior company (41 companies).

All pyramid selling companies are puzzled: they can't earn money or the company's system can't work.

Later, there were dragon and Phoenix system in fule company, computer network, public platoon, and so on.

Then came the German "trump card 88" and other similar "chain" Direct Selling Company.

The confusion of "illegal pyramid schemes" has attracted the attention of government regulators.

Thus, the relevant laws began to come out. - in August 1994, the State Administration for Industry and Commerce issued the Circular No. 233 on illegal activities to stop multi-level pyramid selling activities. In September, it issued the circular on investigating illegal activities in multi-level pyramid selling activities. In September 22, 1996, the State Council issued a notice on stopping the development of multi-level pyramid selling enterprises, and subsequently formulated the implementation measures for reviewing and clearing multi-level pyramid selling enterprises. In January 11, 1997, the government promulgated the "pyramid selling management measures", so that the industry really did have a law to follow.

In April 21, 1998, the State Council promulgated the notice on suspending pyramid selling before ending the chaos.

It not only safeguards the market order, protects the rights and interests of consumers, but also pave the way for the normative operation of future industries.

In 2001, China joined the WTO.

In accordance with the corresponding commitments, 3 years after entry into WTO, the service industry, including direct sales, which has no fixed location in the commercial way, will be phased out.

In September 1, 2005, the regulations on direct selling management and the regulations on prohibiting pyramid selling were officially promulgated.

With the opening up of China, the direct selling industry has also been legalized and standardized.

Chinese direct selling has been on the right track since the Avon Co became the first officially approved direct selling pilot enterprise in China in April 8, 2005. Until March 2008, 20 direct selling enterprises had been approved by the government.

With the issuance of direct selling licences, the direct selling of related enterprises has entered a more substantive stage of operation.

So what is direct selling?

According to the third regulation of direct selling management, direct selling refers to the way of direct selling enterprises to recruit direct sellers, and direct sellers to sell products directly to the ultimate consumers outside the fixed business places.

Direct selling products refer to products sold by direct selling enterprises through direct selling, that is, products that are approved within the scope of direct selling products.

The difference between direct selling and pyramid selling: first, whether there is an entry fee.

Two: whether or not to rely on quality products.

Three: whether the products are sold in the market.

Four: whether there is a return guarantee system.

Five: whether there is a pcendence in the structure of salesmen.

An illegal pyramid selling company that gains revenue by "pulling the head" often appears as "Pyramid" in the structure of salesmen. Such a sales structure leads to who comes first, and at the same time, the participants first get the proceeds from the entry fee paid by the developing members, and the amount of income is determined by the order of their joining. The first entrants always lead the latecomers.

This kind of non pcendency does not exist in the regular Direct Selling Company, and the participants are not only successively in the income, but also show more work and more gains.

Therefore, regular direct selling enterprises will not do anything harmful to consumers.

After obtaining the license and obtaining the approval products approved by the Ministry of Commerce, including cosmetics, health food and cleaning products, the enterprises can recruit salesmen, send information to the salesmen, give them training courses, and tell them the company's system -- the dual track system (also known as the gold and silver net system) must be run in parallel with the two lines. It can exchange gold and silver, accumulate gold net points, and accumulate money in the gold net.

But people's ability is limited and can not run in parallel, so they buy products for the company every month.

This is the most representative system of direct selling enterprises.

In addition, there are 33 systems; 44 systems; buy manager line; Pyramid system (sliding point system); five level three order system. These systems are adopted according to the situation of various companies.

Regular direct selling enterprises establish a cooling off period, return and exit system according to the regulations on direct selling management.

Generally speaking, once the consumer puts forward the opinion of returning the goods to the direct selling enterprise, the direct selling enterprise should respond promptly, and make the return and exchange process within the specified time.

The cooling off period system in direct selling is a system that the direct selling enterprises must execute unconditionally.