« Upgraded Blog to Mt 3.14 | Main | Santa's Bringing New Servers »
December 28, 2004
China Stalls Direct Sales
By QBlog in
Chinese officials have once again delayed the opening of "direct-selling" in their country. CHINAdaily reports that despite promising to remove the ban on direct selling as a condition of its entry into the World Trade Organization, government officials are effectively maintaining the ban amid concerns over "direct selling's potential for causing social unrest."
Apparently China has had a real problem with pyramid schemes and "widespread fraud." During the last 12 months (from Sept. '03 - Oct. '04) the State Administration of Industry and Commerce has cracked down on pyramid sales 2,797 times and "smashed 11,000 pyramid gangs." Wow. That's a lot of scamming.
So, companies like Amway and Avon will be forced to wait a little longer before they can begin direct selling. Until then, they'll continue to sell products in a store with trained sales representatives. What an amazing concept. And did you know that Amway pulled in over $1.2 billion dollars in China last year, 20% of Alticor's total earnings, by selling products in Chinese stores. Yeah, go figure.
The most interesting part of the entire article happens to be the very end which states:
The government will also require direct selling companies to have no records of severe law-breaking in the past two years and overseas firms to have at least three years' management experience in direct selling.
The commission paid to the salespersons should not exceed 25 per cent of the product price and the companies should be responsible for the illegal activity of salespersons.
Very interesting.
Comments
Or maybe an Amway version of Sam's Club? I think there is a difference but I claim ignorance on this one so I'm probably wrong. Thanks for the info Jen.
Wow. Looks like China is requiring the company who is moving the products to actually be accountable for the people who are responsible for moving their product line.
I don't think that particular concept would translate well here in North America.
Very Interesting indeed.
do you want to know a big part of the success in china? this guy here Leonard and ester kim.
http://kim.wwdb.biz/
200 diamonds ?? I thought that Quixtar hasn't made ONE diamond since inception.
To quote the Chinese , "I doon-t siink soooo".
Mike, I hope you can clue in on the scam in the new year....
No Diamonds since quixtars inception huh? that means I'll be the first!! I started quixtar in Nov of 1999 without ever joining amway prior. I'll clue in bigtime this year!
Uh-oh, Mikey likes it.....
Too bad that the same propagand Mike posted about your Korean friend is all BS. No Quix diamonds, yet that dude claims 'breaking 200 diamonds'.
So, Mike, do you really think you are going to be first to succeed in a system that blatantly lies? (not to mention inherently flawed).?
I don't siii-iink sooo.....
The "sell products in a store with trained sales representatives" doesn't means jack since the only persons who can shop at the store are IBO's. In other words, it's just a glorified product pickup.
Posted by: jen | December 28, 2004 11:50 PM