2014-12-22 14:42

 

See how Avon was only 10000000 of the buyout 8 years development of an industry

 

CNDSN December 21st news [] (first issue) Avon China Company acknowledged Wednesday, during the period from 2004 to 2008, senior and staff had to Avon China can help them to get Chinese officials direct selling license, avoid fines and pressing state negative reports a total of 9600 pens bribery, bribery amount to $1650000 (about 6.2199 yuan (Note:, 0.0054, 0.09%) 10250000 yuan), therefore agreed to pay $135000000 (about 838000000 yuan) is related to civil and criminal charges of reconciliation.

Reconciliation is Avon behind, only a mere 10000000 yuan, to buy out the development China direct selling industry for eight years, and the consequences of not yet ended.

The direct selling industry Avon China once big sister, impact on the Chinese direct sales market is very profound. Direct marketing experts, the famous nine Fangma communication agency chairman Wang Wanjun pointed out, "although there is no news that Avon bribery whether directly affect direct legislation, but" Avon mode "was adopted in the law, brought a hit but to Chinese direct selling market.

Because the single level direct selling Avon mode is the direct selling regulations adopted, and the multi-level direct sales model above Amway 95% was characterized as illegal pyramid selling, causes the entire Chinese direct selling industry in addition to Avon, had to "dancing with shackles", brought a variety of hold back end, seriously hindered the development of the direct selling industry China. Many direct selling enterprises therefore lead to fine a year more than 10000000 yuan."

In early 2010 April, Wang Wanjun had written asking "who asked for Avon bribery bill", but so far no who therefore bear the responsibility. Sadly, Avon fine, only to cope with USA territory of the sanctions, and China damaged direct selling enterprises semi wool have no relationship. When Avon bribe one of three generals, and even entered the vice president is appointed to a draw direct selling enterprises.

In the direct selling legislation early, appeared Avon mode and Amway model debate. The former represents a single level, the latter represents the multi-level international sales accounted for more than 95% of the direct selling legislation Chinese mainstream, direct selling enterprises expect is multi-level open, but the single level direct selling has become Avon China direct open template.

Direct the legislative process, regarded as the first meeting of the Xiamen direct selling legislation initiated by the Ministry of Commerce, led by the then foreign secretary, deputy director of the Ministry of Commerce Deng Zhan has been walking in the direct selling legislation stage, and is seen as a key figure. In addition, Department of treaty and Law Department of commerce plays a more important role (Department of treaty and law is the responsibility of the Shi Ming formulation of laws and regulations and law application standard), at that time was called "economic traitor" Guo Jingyi has been appointed deputy director of the division of a law. "The Guo Jingyi Deng Zhanwo case" after the incident, people found that part of the Multi-National Corporation through the people to grasp the regulations of bribery to obtain the competitive power, from the legal protection on the convenience, even at the expense of the original market demands.

Direct selling regulations to the market orientation, bring direct selling enterprises embarrassing situation, but also brought big challenge to law enforcement. Because of the multi-level direct selling market is an irreversible development way, and in the process of law enforcement in view of this way is irreversible and resulted in law enforcement can not strictly in accordance with the direct selling regulations to purge the market. To obtain a direct selling license only by way of direct selling enterprises, in fact used a multi-level direct sales model. But the direct selling regulations as hanging in the head of the sword, to a certain extent and become local profit management tool. As a result of direct selling regulations and market deviates from the actual demand, leading to regulations difficult to implement, but after all the existing legal texts, which makes a number of local management department to get a very large degree of freedom in supervision enterprises. No matter the brand enterprises and non licensed enterprises often encounter this kind of embarrassment: "you are selling you are direct, even the MLM (multi level in fact direct) is direct; say you are MLM you is a pyramid scheme, even if is direct (single level direct selling is in fact the MLM)." The awkward consequences, is the need to pay a high cost of enterprise public relations.

More seriously, because the conflict rules and the market, constrained the development of enterprises, serious sacrifice of whole industry development speed. It can be said that the 10000000 yuan fine AVON, bought out the full 8 years of the development of China's direct selling industry.

The market a little relief, recently, insiders said, the Ministry of commerce is a meeting to discuss about the legal laws and regulations direct modification opinion in focus, although the main is to modify the regulations about service outlets, but this means that the relevant departments to finally realize that the conflict rules and the market, and began to solve.

Although China's direct selling market for a AVON and experienced pain, but the industry still believe, will China's direct selling market and explore a line with China's national conditions, and the law of the development of road industry. In the advocacy of law society today, will have to meet the needs of market rules out. After all, the rule of law, rule of law can the premise must be. *

(original title: see how AVON was only 10000000 of the buyout 8 years development of an industry)

Editor: small Shen