2014-12-19 08:51
South Korea multi-level marketing present situation investigation
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CNDSN network December 19th news (Institute of world direct selling research) on the century 70's, direct selling was officially settled in South korea. At the time of the Republic of Korea, direct marketing as a new thing amazing and unpopular, and even be regarded as heterogeneous. Therefore, the South Korean direct selling is after the chaos, trough, turningseveral stages was finally on the right track, this point is exactly the same with the direct selling in china. With the development of direct marketing and perfect, South Korea directevolved two direct sales model: single level marketing and multi level marketing (MLM). Nowadays, global direct selling conditions mature, South Korea, direct selling enterprises aremustering the enthusiasm, to take the leeward boat, go up. They not only is the common people income, more prosperous South Korea economic development has injected new vitality and new ideas. At present, South Korea approximately 106 multi-level direct sellingenterprises. Every July, the Korea Fair Trade Commission (KFTC) will publish annual reportsof these companies from the. So, how to South Korea MLM company after all the development, let us explore. South Korea's MLM enterprise opened the veil of performance According to statistics, in 2012 South Korea MLM Corporation has set the record of about 20860000000 yuan (RMB, the same below) performance, in 2013 reached 22670000000 yuan, up 8.7%. From Figure 1 and Figure 2, we can see clearly that the ten leading enterprise (TOP 10) of about 80% to firmly hold the MLM industry market share; while TOP10in foreign MLM enterprises.
According to the study, since the 90's, many South Korean direct marketing experts began to constantly explore, learn from the advanced large-scale direct sales enterprises journey, after 2000, Korean MLM company has achieved perfect reversal, market share gradually catch up with foreign MLM companies. But with the continuous influx of foreign enterprises and increase investment, market share is rising, re occupy the market high. This game invisible inspiredSouth Korea MLM and the whole of the direct selling industry vitality, make South Korea once by direct power image appeared on the world stage. According to the World Bank statistics, the total population of South Korea in 2013 50220000,among them the economic activity accounted for 50% of the population, excluding the 3.1%unemployment, employment for 24330000. To the best of our knowledge, a total of 106 MLM enterprises direct sales for 5723689 people, accounted for 23.5% of the total population of employment. Such high popularity, is amazing. South Korea MLM industry bright Is it right?Completely by its huge sales team to do support? Based on determining the sales staff andturnover with correlation, the authors use SPSS19.0 software, through regression analysis showed that, the number of the sales staff to explain the performance change of degree56.4%. This also shows that the number of sales staff, how many does affect performance. As everyone knows, the per capita performance to some extent can reflect the enterprisemarketing team's overall competitiveness and operational efficiency, low per capitaperformance of enterprises should be in the enterprise internal management, factors such asorganization structure, business process, enterprise employees, corporate culture, to carry out proper investigation and adjustment, in order to break through the bottleneck, to seek development. The study found that 106 South Korean MLM company's per capita revenue of 3960 yuan, more than the average number of MLM enterprises have 52 (49%). In the MLM industry, per capita volume between the larger gap (see Table 1).
Uncover the veil of Korea MLM enterprise two bonus In 2013, the total amount of bonus MLM Korea enterprise appropriated amounts to 7400000000 yuan, of which TOP10 set aside awards amounting to 6000000000 yuan,accounting for more than 81%. The whole MLM industry per capita bonus for 5900 yuan,higher than the average number of enterprises accounted for 40% bonus. Overview of theMLM industry, enterprise between per capita amount of prize levels not neat, as shown in table 2:
Uncover the veil of Korea MLM enterprise three bonus allocate rate Bonus allocate rate (shifting ratio, the same below) is a matter of direct sellers interests. In the selection of MLM enterprise, shifting than it will become the key factor affecting thechoice. Once the salespeople selected a company, the company's shifting than will become abenchmark, has a sustained effect "anchor", anchored in the future than the acceptable range dial. According to the relevant provisions of KFTC, MLM, dial the ratio should not exceed 35%, otherwise will be punished. In general, the higher the shifting than sales, staffenthusiasm would be more high, therefore, some enterprises even will dial than used to attract and motivate employees as a means of. According to statistics, South Korea MLM enterprise bonus allocate rate mode was 34.37%(with an average dial TOP 10 MLM enterprises more than 33.5% similar), said South Korea'sdirect enterprise bonus dial ratio significantly concentrated in 34.37% nearby (Figure 3). TheCMNG, EVERMER, Life Pharm Globa, K-Selling and ENS respectively, take 54.52%, 37.09%,49.44%, 35.03%, 60.95% higher than Altwell, and dial; IONE, ACN, Motive Biz, Artist MSS,NHTK, Wine, and other Duoterui Zhe and Wanna Happy to dial is relatively low, respectively is 18.65%, 16.57%, 18.09% and 14.88%, 4.16%, 12.55%, 18.76%, 8.12%, 19.71%, 19.01%.
Uncover the Korean MLM corporate veil of four of net income The shopping center smoke, winning or losing is really difficult to avoid, and this is thecommercial norm. There are 45 losses 106 MLM enterprises statistics, in 2, the zero profit. The temporary defeat of the enterprises, the need to find the reason in itself or other aspects,continue to aim high. To this end, the hospital according to the existing data analysis found that the net income and the total number of active sales staff, sales staff there exists strong relationship (see Table 3). Therefore, the negative earnings MLM enterprises can considerthese two factors as the breakthrough point, the Minutemen, profitability. "Bridge Hallyu" and "Chinese wind" add radiance and beauty to each other. Long term since, China and South Korea has always maintained a good neighborly and friendly relations, political, business and civil interaction source, like a surging river, never dry up. The government level, the two sides frequent exchanges of visit to South Korea in July 3, 2014, Xi Jinping, said relations between the two countries are standing at a new starting point,facing a great developing opportunities to the development of bilateral relations, inject new impetus is a common problem facing the two sides. The friendly interaction between the government and humanitarian level, has become a living force promoted substantive development of bilateral economic and trade relations. Data show that in 2013 the bilateral trade volume exceeded US $270000000000, quite and Han Mei, the Korea Japan trade total amount. In China, if the mention of South Korea, people's mind will have to emerge all kinds of beautiful style, mixed comedy elements of Korean dramas andpackaging of Korean cosmetics, resulting in the "Korean wave" swept over, everyone pursuedspectacle. At present, China and South Korea in the field of direct marketing is a small intersection.Korea amore direct selling enterprises only in the card, and Chinese firms are only long,Longliqi and a new era of three home in Han Kaizhi leaf. In the increasingly fierce competition in the homogenization of products, the exotic South Korea direct product and the majority offans cluster, no doubt for the paved a way. China's direct selling enterprises will also relies on the regional, product quality and other advantages, so that "Chinese wind" swept South korea. The direct selling industry will become "a bridge Korean" and "Chinese wind" each other. With the two national value differences continue to eliminate, tends to fusion and twodirect sales policy of continuous improvement, we firmly believe that bilateral trade will continue to release the potential of parallel trade environment, where in each market stage,leaving the most heavy heavy color of a pen. * (of the original title: South Korea multi-level direct sales) Editor: Dream culvert
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