2017-09-07 16:52

 

Guo Huihua: factor analysis of the performance growth of Chinese direct selling enterprises

 

[news] September 7th report of Beijing (International Business Daily reporter Guo Huihua) in recent one or two years, the situation is a direct selling company Rainbow Night, the positive effect of a policy gradually, gradually increase the degree of social recognition, conducive to the development of the enterprise; on the other hand, licensed enterprises more and more fierce competition, coupled with the rapid rise of social business; the force of direct selling enterprises at a crucial crossroads. Thus, the development of some enterprises encountered a bottleneck, which led to some of the performance of enterprises has declined. The reporter was studied through the analysis of the direct selling industry in new and old enterprise licensed enterprises, enterprises that are at different stages of development, its concept of development will be different, to promote the market performance of the business strategies adopted will be not the same. On the whole, the current growth of direct sales industry behind the main driving factors are the following:
Direct selling system
Promote the sustained and steady development of enterprise performance
In many domestic and foreign direct selling enterprises have some excellent system: Enron Huaqi system, Wei Kang system, Anhui dragon Jianghai system etc.. The system itself has become the company's development model, including products, cultural ideas, the profit mode, marketing mode and channel establishment, operation and management of the content, help direct selling enterprises to expand the market rapidly. In fact, the system team is a double-edged sword. Because in the promotion of enterprise performance continued to grow, but also can make some enterprises suffer losses, or even crisis. Before, insiders pointed out that most of the public relations crisis happened in direct selling enterprises came from dealers and their system team. Therefore, only direct marketing enterprises to set up efficient marketing system team, and maintain the united front of the system team and enterprise, in order to better help enterprises bigger and stronger, and achieve sustainable development.
system
Short term performance explosion growth, but there are operational risks
According to the 2005 enactment of the "direct selling regulations" in direct sellers sell products directly to end consumers and to get paid for the standard, but in fact, the establishment of direct selling enterprise payment system, is usually generated by products in the sales process profits as a basis to develop a multi-level distribution system to profit direct sales incentive to give full play to their potential, the bonus system is the largest power enterprises to absorb direct sellers, promote sales and direct sales in the development of enterprise. In general, enterprises in the first set of salary system will allocate ratio. Dial out rate is high, it is more attractive for the market, but at the same time, business risk is greater, less attributable to the interests of the enterprise.
The personage inside course of study points out: at present already developed, stable, direct selling enterprise set out rate is not higher than 60%. But there are also some enterprises will adopt some radical incentives to promote the market such as normal from the market to allocate ratio to stimulate the market, the reward system is called the dual track system, also called two-way system, usually the bonus return ratio is above 60%, and some even in 80%, it will directly lead to explosive enterprises growth in the short term, but not sustainable, so as to cause a variety of social and legal issues, and change radically business performance, such cases have occurred.