Just past 2007, on the direct selling industry, although no longer the beginning of 2006, direct selling regulations to implement the landmark significance, but the actual operation of the level, whether it is government regulation or business operations, are gradually setting a relatively sophisticated model. With the threshold into the direct marketing business increased, the performance also replaced the license to become the most watched topics.

Initial establishment of direct regulatory system

“Direct Management Ordinance “was formally implemented in 2006. If that was the industry’s interpretation of the regulations remain in how to meet the additional qualification granted a license, then officially launched in 2007 in the number of direct sales companies to gradually increase the situation, “direct selling regulations,” and the subsequent series of auxiliary system introduced, making the direct supervision of the market forming the system.

In market access, the State Administration for Industry and Business Department for approval to establish a communication mechanism. Currently, the approved 22 direct selling companies, of which Avon, Amway , As new, Ningbo sells, Bao Jian, a new era, fudi, Kim Shi-li good friends, Nanjing pulse, Oriflame, Guangdong, Hong power, Herbalife, perfect, the South with Lee Kum Kee, Mary Kay, Beijing Luomai, Guangdong Sun God, Melaleuca, such as Tianjin, yet He has adopted 19 Service Network verification, to be permitted to conduct direct business activities.

Daily monitoring, following the “direct supervision on the good work notice” issued, the State Administration for Industry has issued a “direct supervision and management work on the strengthening of view”, on the direct selling business registration, to strengthen direct Key areas of regulatory activities, to strengthen supervision and management of the Internet, establish and perfect the mechanism of direct supervision, investigate acts of engaging in direct sales, business regulation governing bodies, strengthening of law enforcement to make provisions such as 7. SAIC clear requirements, industry and commerce authorities at all levels of supervision to direct sales company focused on the recruitment, Train And payment terms, strictly investigated engaging in direct marketing and direct sales banner banner in MLM activities. Meanwhile, China’s rapid response mechanism to combat pyramid schemes are to be initially established last year, public security, federations of industry began to mature and I work mechanism, prevention and control of community supervision against pyramid schemes Network Has been basically formed. At present, all industry and commerce have been working against pyramid schemes into comprehensive management of local areas and will act against pyramid selling by the department up to government action. Performance into the hottest topic of last year

To mature legal environment as the background, the operation of direct selling companies have truly entered a normal. In 2007, received many cards are still waiting at the door of the business concern, but the industry point of view, a considerable part of the largest direct foreign investment enterprises in the legal threshold of reality into the situation, the company’s operating performance should more attention, and most can directly reflect the performance of this situation than the target.

Based on current information already in the public, because the beginning of 2006, the implementation of direct selling regulations and industry have a certain fluctuation phenomena caused by declines in 2007, is easing. The pioneers of direct selling license from the Avon company early last year, formally entered the second phase of the new direct sales model. Relevant information, Avon sales in China last year the first three quarters year on year revenue grew 44%, 36% and 23%, three quarters of the number of direct sellers Avon active up 44% over last year; while another direct selling company Amway industry benchmarking companies are also starting on August 1 last year, officially launched the direct sales business in China. Eva Cheng, chairman of Amway China, in an interview late last year that 2007 results will be achieved double-digit growth.

At the same time, there are still trapped in the direct selling business performance issues. Last year in September, the European direct marketing industry boss Oriflame (China), head of easy to master. According to reports, replace the president’s immediate cause of Oriflame’s sales in China less than a month to 500 million, far below the expectations of the headquarters in Sweden, who has made major contributions toward the license Oriflame’s Chen Hailin also Thus a direct result of Jieshou a separation performance and management executives in China. In fact, in addition to Chen Hailin, including such new Qiu Jinyun, Herbalife money to Hong Kong-based and other foreign direct selling companies, including several high-level changes, more or less a reflection of these companies were licensed in the future development in China after the road again deployment.

I am an expert from Cheap On Sales, usually analyzes all kind of industries situation, such as psa nitrogen , inert gas generator.