Direct Marketing Direct Marketing VS MLM industry watch: legal and illegal ? direct, legal ? hairdre
Article by jekky
?And? prohibition of pyramid schemes (Draft). ? Direct Marketing VS MLM: legal and illegal Two cases through the news release, the users are very enthusiastic response, less than a day to keep abreast of only Sina reached more than 1100 articles, most of which is bitterly critical of some enterprises the banner of ?direct sale? banner, line ?illegal pyramid scheme? in real. Direct, really with the ?pyramid schemes,? indistinguishable from it? In the UK and other developed countries, direct sales, MLM is not broken down, are expressed as ?directsaling?, mainly reflected a Sell Channel flattening trend and personalized services. Overseas traditional direct marketing methods, usually direct selling companies have a manufacturing base, and employment and Train Some direct sellers, direct sellers through their interpersonal networks to promote their products, according to marketing of the amount of remunerated. The first to enter the Chinese market, direct selling company, is the beginning of 1990 in Guangzhou Investment Tens of millions of dollars Cosmetology Cosmetic Company Avon . Subsequently, Amway , Mary Kay and other direct predators followed, push into the Chinese market. Initially, most of these direct sales by overseas giants of traditional direct marketing methods??? Direct selling, greatly reduce intermediate links, hundreds of thousands of Dream swarmed into their direct sellers. To the beginning of 1998, approved by the Chinese government a total of 41 large-scale direct sales business, has not been approved is blossom everywhere. As the legislative and regulatory lag, some people take advantage of loopholes to seize the many people who want to ?flourishes? psychological vigorously multilevel marketing. Typical features are: the ?development offline, expanding the network,? the first place, the development of offline more from the higher commission or bonus, and finally form a pyramid-type ?mice will be.? ?Direct access to China, slowly on lukewarm, and the concept has become blurred.? Huazhong University of Science Associate Professor of Business Administration Hong Yun said, in fact, obvious differences between direct sales and MLM. Her analysis, direct marketing is taking the direct sales channels, direct sellers themselves are employees, their marketing activities without any middlemen, directly to the final Client Or consumers, and China so-called ?pyramid schemes,? mainly by the development off the assembly line to make money, go for indirect sales channels, speculation Color Strong, eventually evolve into outright fraud. Outcrop hit, declining the case of illegal pyramid schemes in our province MLM flooded, causing serious harm to society. For the development of offline, big fraud unscrupulous marketing agents to sell counterfeit, smuggled products, profits, tax evasion Tax . Many of the bottom of the ?offline?, ended up bankrupt and even family members dead in the tragic outcome. This end, the State Council in April 1998 issue ?on the prohibition of pyramid schemes Operate Activities to inform. ? In recent years, the business sector in our province all types of pyramid selling and disguised pyramid schemes always keep the pressure up, the number of cases investigated, the case value, number of people involved showed declining trend year by year. According to provincial statistics Trade and Industry Bureau, 2003, 2004, the province of pyramid selling cases investigated were 26, 24, which values were 3.215 million yuan, 544,000 yuan, pyramid schemes officers involved were 3313 people, 2405 people . Last year in May, Huangmei County Business Council, the Public Security Bureau, the joint strike more than 50 law enforcement officers, smashed Koike entrenched in the county town of ?Shenyang Tyurin company? in the name of the dens of illegal pyramid schemes 12, the repatriation of over 1,000 marketing agents . The first half of this year, the province only to investigate cases of a pyramid scheme, worth 160,000 yuan. Strike out, the state has also taken measures to regulate the direct sales market. Since 1998, the state special approval from the Avon, Amway, Mary Kay, Zhongshan perfect, the South Lee Kum Kee top ten direct selling companies such as the transformation of enterprises with foreign investment, a ?salesman store sales increase of employment? system sell. To this end, transformation of enterprises large shop, just opened the Avon on more than 6,300 stores and more than 1700 products counter, medium and small cities throughout the country. Transformation of enterprises eager to ?rectification of names? Notorious pyramid scheme people who held a grudge against direct marketing, some direct selling enterprises simply return to the traditional wholesale and retail or mixed business model, and some transformation of enterprises in the publicity as much as possible to evade the ?direct marketing? word. Conservative estimate, according to research agency, operating across the country to direct business model around 1000, only to Guangdong Province to over 600. The passage of the two cases, so many distributors sighed with relief. ?I hope Direct Method Regulations introduced earlier! ?Mary Kay Wuhan Branch Dealers Yang Limin smiling to say that legislation would direct the ?real legalization? to regain public trust, those who fish in the direct sales business will eventually be eliminated. Was also not optimistic. This year in April, Avon announced a pilot program, the Avon store salesman became the direct seller, getting goods directly from the company, resulting in sharp drop in performance of many stores, dealers caused a strong reaction. With black shops, online sales and Shopping , Supermarkets cheap shocks, how to balance the interests of salespeople and distributors disputes, as placed in direct selling business in front of a big problem. The Expert That the introduction of direct selling regulations not only means the gradual opening up the market, but also indicates that more stringent regulation. As two cases not yet been promulgated, a number of direct selling companies who are circumspect. Hubei branch outside Amway Services Head Yao Wenliang, said Amway transformation, has been taken to increase employment approved by the state store salesman?s sales model. Until after the implementation of the Ordinance, Amway will be ?implemented.? Avon (China) Co., Ltd. Media PR Assistant Manager Matej said: ?The specification Laws and regulations System will help crack down on illegal pyramid schemes, protect consumer interests, while safeguarding the legitimate business of direct selling in China, the interests of business. ? Industry generally believe that the enactment of two laws, on the one hand that the State?s determination to crack down on pyramid schemes; the other hand, direct sales by giving legal status to guide and regulate the market, direct selling is being ushered in ?a historic opportunity.? However, some direct marketing experts warned that those businesses not eligible for a license may be underground, how to monitor will be the biggest challenge facing regulators. Back to channel home hairdressing industry Back to News Home
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I am an expert from Components Electronic suppliers, usually analyzes all kind of industries situation, such as arm band holder , neoprene foam.
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