Before and after the Spring Festival in 2018, several agencies and media in the direct selling industry successively released the performance rankings of the direct selling industry in 2017. The statistical coverage is different. However, through several lists, direct selling companies can be roughly divided into several categories. The first category is stable. Sitting in the top few of the industry's oldest direct selling companies, they have long since begun to explore the path of model innovation, and now they have accumulated hundreds of billions of clubs. The companies of the second tier are basically following the introduction of the two regulations and are beginning to explore the operation of the direct sales model. , have had a decade of history, performance has also accumulated to a relatively stable level.

 

China Direct Marketing Development Insights

 

After the issuance of the “Direct Selling Management Regulations” and the “Prohibition of MLM Regulations”, the direct selling industry has developed steadily. Most companies can achieve innovation and diversification on the basis of legal compliance, but there are still a few companies that have problems. Recently visited a number of companies, sprouted their own views on the industry.

 

First, the product is sold to consumers through product sharing + word-of-mouth communication, and companies will share the benefits with sales personnel to mobilize their enthusiasm to form an automatic wave-type market. Under this business model, products gradually become props. Once "high value-added" health products were advertised. This bad influence has so far become one of the problems that the industry has concentrated on.

 

All along, the professional threshold of the industry has forced companies to hire professionals to manage operations. The quality of employees varies, and some industry professionals do their best. The model has been touted as a panacea. The result is not only unhelpful to the development of the company, but also has brought about many adverse effects on the healthy development of the industry.

 

Second, through culture and education and training to enable consumers to understand the company's products, increase confidence in the company, so as to better sales. However, some companies have become only keen to “brainwash” and “beating blood”. The systems and teams established in this way have a group of loyal followers on the way to dreams, and the effectiveness of the training phase Let this method and even some of the "three youngest axes" continue to this day, among which respected, gods, and riches are all accompanied by strong chronological characteristics. The "halo" and "one call and one hundred strokes" are still the goals pursued by this group of people.

 

Third, through the direct marketing method to activate the company, to quickly return funds and expand development has become a lot of choice for SMEs. In this process, companies are tempted to seduce and slacken their talents. Because professionalism is lacking in detours and falls, there are not many models that can no longer believe when the panacea fails to do so. It's not uncommon for you to wrap yourself up behind closed doors. Of course, we still have the habit of paying attention to the accomplishments. These and so on constitute an overview of the current industry.

 

Fourth, the current status of the industry is basically driven by the direct sales of “old cannons” that have entered the industry in the early stage. Professionals with years of experience in the industry have become hot and worthless as they increase their direct sales licenses. A sense of superiority may increase its reliance on experience in the development of the company. Therefore, in the face of the era of great changes, it is reflected that the overall innovation of China's direct selling industry is iteratively slower than other industries, and this slowness also means losing the development opportunities of this era and consumers belonging to this era.

China's direct sales development

 

In fact, China's direct selling industry has come along and cultivated many talents. It has activated many regional economies and promoted the upgrading of local industries. At the same time, it has also linked many upstream and downstream industries, increased taxation, fulfilled the social responsibilities of corporate citizens, and practiced. Public welfare has spread positive energy. However, the industry can not carry the inherent mode forward, and can not take advantage of the “opportunity” that is no longer superior after enjoying the opportunities of the age and the demographic dividend. The new era is not a warm water zone. The various problems and challenges faced by the industry and outside of China are forced to move forward. Chinese-style direct marketing has already reached a point of awakening and iterating.

 

Regarding products, they are no longer props. They must provide products with reasonable prices and high quality. Consumers' upgrades and iterations put forward higher requirements for the construction of enterprise product systems. At the same time, the product system also affects the performance structure of the company. For a long time, most of the direct sales companies' performance constitutes new performance (ie, the amount of new customers' spending, mandatory repeated consumption is almost negligible). Although some companies have made changes in recent years, the slower pace is still constraining the consumption potential of corporate members. Each member of the old direct selling company's member database represents a household consumption, but we did not meet this demand. We have less interaction and less service, which reduces the stickiness of our members and the loss is not unexpected. Now. We need to activate the membership database and activate the zombie powder to provide the products they need daily. The products must not only be of high quality but also have high face value.

 

With regard to education and training, the age of "asymmetric information" has passed. Now that information is unprecedentedly transparent, everyone is from the media. Everyone is a center. They are no longer willing to be indoctrinated and driven. The influence of previous “incentives” and other methods has gradually declined. We should create "examples" that can influence a group of people. They can identify and be attracted, and actively approach and follow in order to converge the values, which at the same time match the company's innovation and development "from the front to the whole "Turn" the trend of transformation.

 

With regard to the tool flow system, it may be related to the age structure of employees, but in the final analysis, the reason should be from the enterprise level. The popularity of mobile terminals has forced us to focus on online operations. However, team members cannot react immediately. Companies need to make necessary input and curriculum design for the basic operation methods and tools of direct sellers, and can gradually ensure marketing. Iterative promotion of human skills. There is also offline experience, do not let the shop become a big single thing, we must be ingenuity.

 

Finally, there is no best model for the development of the rhythm. Only the model that suits the enterprise itself is not to overestimate the enterprise's development goals because of a superstitious marketing model. There are many factors that can be used to assess a company. It is definitely not just about performance growth. We usually divide an enterprise's architecture into two parts: business systems and business support systems. The business system is developing too fast and the business support system can't keep up. It will expose a series of problems. Business development must match the corresponding business support system. This process requires companies to meet and match market and consumer changes in various aspects. Enterprises do not necessarily have to develop fast, and the key can continue to be benign. When the entire industry can accommodate more and more benign SMEs, the industry will be healthy and orderly. Therefore, companies must have long-term plans, set their own goals, achieve rapid innovation and accumulate milestones.