For the past few days I’ve been posting excerps from my Honors Undergraduate Thesis. Things have been changing very quickly in China recently, especially for MLM.
Often considered a cult by the Chinese Government, (like the Falun Gong), the Chinese government is departamentally trying to deal with the 10 Billion dollar industry in [...]
The future of MLM in China is a complicated scenario, best understood when described through the experience of seasoned professionals.
Initial research identified a number of specific obstacles faced by nutraceutical MLM in China. Although these obstacles were identified in the literature, the relevancy of these findings in regards to those actually involved in the [...]
With the tumultuous past behind, multilevel marketers look to the future for real returns on their investments.
Companies such as Amway and Mary Kay have demonstrated that there is a significant amount of profit to be made through MLM and retail sales in China. Newcomer Nu Skin is eager for involvement in this market [...]
Effective penetration into the Greater Chinese Market for any company, though especially MLMs, requires a balanced approach.
Aside from direct incentive and leverage of political guanxi, a strong government relationship is made possible through obtaining positive support of the people. This public image can be obtained through direct public contact or the influence of newspapers, [...]
Multilevel marketing companies have worked hard to adapt their business practices to meet the Chinese market demands.
The Retail/ Single Level Switch
The conversion from MLM to retail required a serious shift in MLM thinking and practice. At the time of the ban, Amway had already invested more than US$100m, Avon US$70m and Mary Kay another [...]
MLMs have been working to get into China for a long time. Here’s an abbreviated description of the obstacles and initial strategies…
Business as Usual
Like many businesses, nutraceutical MLM companies first penetrated China’s market using the same marketing strategies that had brought them strong success in their previous markets. After only 2 years of [...]
PAST OBSTACLES BECOME FUTURE OPPORTUNITIES
Multilevel or direct marketing is arguably one of the most effective available systems of marketing a unique product with low overhead costs. The largest multilevel marketing or MLM firms are based in the nutraceutical or health industry. Although many MLM firms earn revenues of tens of billions of dollars [...]