[Direct Report Network Beijing January 30th] (Huaxia Times) "After Quan Jian, we are all looking forward to Shang He being exposed and being investigated." Many people who have participated in the Shanghe beauty and health care project told the reporter of China Times .

 

In their view, this direct selling giant that has been brainwashed, paid for joining fees, and expanded by human heads is actually doing MLM. Just because Tianjin Shanghe's franchise stores are not named as Quan Jian, the business is mainly weight loss, beauty, and it is not easy to have a serious accident, so it is more secret.

 

However, this 2017 performance is as high as 10 billion yuan, ranking the fifth in the country's direct selling industry. In Tianjin, the health care products direct selling industry giants have not been able to get rid of the suspected pyramid schemes. In the search engine input "Shanghe", you can find many reports of "Shanghe suspected pyramid schemes", "false propaganda" and "cross-regional operations" and other media reports on the illegal operation of Tianjin Shanghe Health Products Co., Ltd.

 

The reporter joined a QQ group that revealed the alleged pyramid scheme of Shanghe. The administrator told the reporter that most of the nearly 600 members are joining themselves or their families to join Shanghe’s beauty and health care project, losing tens of thousands, hundreds of thousands or even hundreds of thousands. It is not uncommon for those with high debts and broken marriages.

 

After joining Shanghe, the superiors will even raise funds through credit card overdrafts and online loans to increase the level of agency, causing some members to owe huge debts. Some women will even support their families in divorce.

 

The secret of the hidden giants

 

Different from Quanjian, the “hot pot shop” with uniform names and decoration styles across the country makes it “big tree”, compared with Tianjin, the second-ranked Shanghe is more low-key and secret.

 

Although it has agents and franchisees in many places across the country, it does not use the same name, but adopts "Aishang", "Shangmei", "Aishang Beauty", "Meslan" and so on. It is not directly related to Shanghe. The name, but these beauty health stores have a common point is to use Shanghe's products, the so-called teachers are through different online contacts to Shanghe and its products, and paid a number of fees, become members.

 

Moreover, since the grassroots members pay the money and get the goods, they all pass the agent, and they do not directly have a relationship with Shanghe. In the Shanghe internal, from the lowest level members to the high-level ambassadors and Haoyu, there are 8 grades. It is difficult to prove their direct relationship with Shanghe if they mistakenly enter the membership of Shanghe MLM.

 

Li Qiang of Xi'an, the story sounds like some dog blood. In his 30s, he is still unmarried, and his friend took the initiative to introduce him to a girlfriend. Who knows that his girlfriend just came back from Shang He’s class, and asked him to join Shang He in the name of falling in love, even at his own expense, only for Develop the line. Li Qiang told reporters that after being invited to study, he explicitly refused to join the members, and the two broke up. The money that was borrowed before would not come back.

 

In Li Qiang's view, the so-called study is Shanghe's investment conference and brainwashing conference.

 

In the hotel grand ballroom with thousands of people, the teacher first introduced the beauty and health products of Shanghe Company, including fish oil for clearing blood vessels, special medicine for uterine fibroids, TBS for weight loss and cervical spondylosis, at the teacher. These products in the mouth have created a medical miracle, the effect is fascinating.

 

After the introduction of the product, it is a story of the rapid success of joining Shanghe. The former rural women, housewives, and even disabled people quickly attacked from the bottom of their lives and became the winners of life. They earned millions of dollars every year and liked the car.

 

The people on the stage performed hard and shed tears. The people under the stage were eager to join. However, in the view of Li Qiang, an outsider who has not been successfully brainwashed, this is actually a routine prepared by Shang He and his many franchisees.

 

Because to become a member of Shanghe, you need to pay an initial fee of 16,800, 48,000, 98,000, 138,000, 228,000 or even 888,000 different gears. After joining, you can get a variety of products. In the beauty salons opened by Shanghe members, you can carry out beauty services and sell products for customers. However, the service fee is not high, and the products are basically sold at the original price. Successful people must develop new downline members.

 

According to him, Shanghe has a comprehensive ABC model to help members develop new members to join. Members who join the new paying list should list the details of their friends, classmates, and relatives, and submit them to the superiors, including age, occupation, city, relationship, resume, demand, characteristics, and status. Then, the superior helps to analyze the situation of these people and develop a plan to entice these people to join. The person on the list is called, the new member is B, and the online is A. "I was submitted as C." Li Qiang said.

 

After B submits the information, A will help B to analyze the situation of C in detail, and then find a way to let him enter the store. At this time, A will lead a large group of subordinates to pretend to be customers to shop, let C see the customer. Yingmen, easy to make money scenes, and inadvertently revealed some people to join the information that earned a lot of money in a few months, then C will be heart-warming, then take it to the China Merchants Association to brainwash and pay to join.

 

Li Qiang said that according to his understanding, the so-called inspection projects and the busy conditions in the shops are all fake. They are arranged in advance and are for the people who inspected. There are not many real customers. Even if they do, they can’t earn customers. To the money.

 

The aforementioned exposes the basic "routines" of Shanghe, which is sorted out by Shanghe Group. The first step: to the health museum experience, you will find a lot of customers, simply not busy; the second step: let you open a shop to say that business is very good, do physical stores or grafting Shanghe project, earn tens of thousands, hundreds of thousands a year No problem; the third step: spend thousands of tens of thousands to join, you learn to learn, and then through a few times you will become a Chinese medicine, nutrition experts, while learning to talk about the development of the line, or additional investment will More profitable; the fourth step: will tell you, you can pull people while opening a store, make money at both ends; the fifth step: meeting learning (that is, brainwashing) will tell you that if you want to make big money, you must develop the line. The sixth step: brainwashing (many hundreds of thousands of years, millions of successful Shanghe success), let you add more (this time you are in a dilemma), and then in the brainwashing, you will start to develop in order to upgrade Downline, or additional investment, the physical store has become the nephew of your development.

 

Yang Ling, whose family was caught, told reporters that she knew that as long as she was targeted and pulled to a meeting, 80% of her participation would be possible. Because after you are eyeing, many people will analyze you, see what kind of routine you are suitable for, make different plans for different people, and then take you to the store to let you see how hot the business is. The discussion is good underneath, and the customers are all played by their own people.

 

When the reporter called Shanghe's official website to get a telephone consultation, the reply was that to become a member of Shanghe, there must be an old member to introduce the product of the corresponding level. As for the new member after the member joins, how to participate in the calculation of the performance sharing problem, the other party Said that these are responsible for the calculation of the corresponding salon director, did not tell the reporter, the company is not allowed to develop offline.

 

In fact, by requiring participants to pay “occupation fees” in various names, and doing everything possible to let the entrants develop the downline “pull the head” and develop the downline, the “team plan” to deceive the formal pyramid scheme of wealth through the layered commission. The most obvious feature.

 

However, since most of these activities are realized by local distributors, those who enter the pits often have difficulty in defending their rights, and the responsibility for violations is often pushed down by dealers.

Franchisees

 

After a full set of routines, many people have "entered into the pit."

 

In 2017, Liu Hangyu, who had resigned and ventured into the business, thought he had entered a big pit. "The only thing that makes money in Shanghe is to lie to your friends, even parents, and put their hard-earned money in your wallet," he said.

 

He himself was preparing to resign and start his own business in 2017. He was sent a small “flicker” to vote for 132,000. He joined a so-called “shared beauty salon” in Beijing. The franchisees shared the rent and water and electricity costs together, using the products of Shanghe. Beauty services make money. Later, I found that doing beauty can't make money at all, and often need to have a meeting to brainwash, and I am asked to pull people to develop the line, because only in this way can we make money.

 

He did not pull people, insisted that he would bid farewell to Shanghe in April 2018, and he would owe 250,000 yuan. He knew that there were about 50 people who had contacted Shanghe and did not do it. When he came out, the debt was between 150,000 and 250,000. .

 

Yang Ling told reporters that her relatives, after being introduced to contact Shanghe, joined the store and bought a car at the lower level. In the place of Shaoshan, Shaanxi, they had to pay more than 8,000 loans a month. Now this family of friends and relatives is full of information about joining the business. Frequent meetings and study of family relationships are also very stiff. After divorce, I can only rely on the East Wall to make up for the Western Wall to borrow debts, but I don’t know my own problems.

 

In the above-mentioned disclosure, many people told reporters that once they joined Shanghe, their superiors would guide and even let members invest in credit cards and online loans. Constantly instilling women to do their own business, to change their destiny through hard work, family members must support their cause, and some even threaten divorce without even support.

 

Liu Hangyu said that part of his investment of 132,000 yuan is the money in the credit card, including the late stage of the continuous demand for replenishment, all of which are solved by borrowing.

 

Zhou Wei of Wuhan told reporters that a friend of hers had lost hundreds of thousands of Shanghe, and the entire back of the cupping was red and swollen, saying that it was detoxification. An ordinary water purifier turned into a magical product in their mouth. Can cure all diseases.

 

In fact, in Shanghe's official website, its Shanghe I type water purifier belongs to the category of small kitchen utensils.

 

In Shanghe's official website, there are 11 products including health products such as chitin capsules, water purifiers, protein powder, cordyceps capsules and essential oils, small kitchen utensils, health care equipment and cosmetics. "They are about a theme of MLM, men are afraid of poverty, women are afraid of ugliness, old people are afraid of death, children are afraid of stupidity, and they are deceiving around them." Zhou said.

 

In Yangling's view, the beauty instrument that sells for 5680 is actually something that is about to be eliminated in the market, but it is blown by the gods and can cure more than 50 diseases. "When you go to do it, the people around you will cooperate, say that there is effect, others say that there is effect, you will doubt your own judgment. It will also be effective. My loved one is cheated like this." Say.

 

Ten billion giants questioned constantly

 

The full set of roads and alleged pyramid schemes did not seem to be marketing to Shanghe’s rapid growth.

 

According to the data of the World Direct Marketing (China) Research Center, in 2017, Shanghe's performance increased by more than 30%, its sales performance reached 10 billion yuan, and it successfully entered the 10 billion performance club, ranking fifth in the country and second in Tianjin, second only to the giant Quanjian.

 

From 2.16 billion yuan in 2015 to 7.8 billion yuan in 2016 and 10 billion yuan in 2017, Shanghe’s performance has nearly five times in just three years, and it has successfully entered the 10 billion yuan performance club and became China’s number one. Five major direct selling companies.

 

According to its official website, in 1993, Shanghe entered the Chinese market. In 2007, Shanghe was awarded the Direct Selling Business License issued by the Ministry of Commerce of the People's Republic of China and became a direct selling company.

 

In 2017, Shanghe signed an investment cooperation agreement with Tianjin Xiqing Economic and Technological Development Zone. Shanghe invested 5 billion yuan and selected the project of the construction headquarters of Xida Health Industry Park in Xiqing Economic and Technological Development Zone, covering a total area of ​​408 acres. After entering the operation, it is expected to achieve an annual sales income of more than 20 billion yuan. This will be an important step for Shanghe Company to focus on the development of big health business and invest in China.

 

In 2017, Shanghe has won more than a dozen awards such as “China's Direct Selling Stars”, “2017's Most Popular Consumer Products”, “Consumer Golden Words Product Award” and “2017 China's Most Respected Brands”. At the same time, Shanghe Company is also enthusiastic about public welfare, and has established the Shanghe Public Welfare Foundation to participate in public welfare activities such as education and poverty alleviation.

 

However, contrary to the official website propaganda, Tianjin Shanghe has violated laws and regulations in many places across the country. Liaoning, Hunan, Guangxi and other places have repeatedly been questioned by the media for allegedly collecting “entry fees” in disguise, exaggerating product efficacy, high-temptation temptation, multi-level compensation and cross-regional operations. (At the request of the respondents, Li Qiang, Yang Ling, Liu Hangyu and Zhou Wei are the pseudonyms.)