MLM model is questioned more and more people

Ribaolaifu performance while climbing, but its model was more and more people. In the early 90's of 20th century, Chinese people of the pyramid is known little Ribao rifle in order to establish marketing network on the mainland, the first station chose Guangzhou, and choose the college students, as the group of new things to accept.

But students do not have the money, to join the MLM network Ribao Laifu's need to buy 1.5 million yuan a high priced Ribao Laifu mattress, many college students under the temptation of the dream of getting rich even borrowed usury to participate in pyramid schemes. There are a dozen students in Guangzhou because the borrowed usury is Dun, finally even dare to return to school.

Never get Gongshang Ju recognized qualification in China MLM

In fact, ribaolaifu never Chinese made Gongshang recognized Ju MLM qualification. The in Shanghai Branch has achieved the qualification, but soon was repossessed by the relevant departments; when in Shenzhen City Administration of industry and Commerce Application Marketing qualification, is to consumers reflect Ribao Laifu too much on the grounds, refused to grant.

However, Japan life, the rapid development of let keen Guangdong businessmen see the MLM attractive prospect, so many direct sales companies such as Chunsun like development.

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Japan Life in the development of Chinese.

>>1996, the beginning of the landslide

From the beginning of the end of 1996, the state has increased the intensity of management of MLM, ribaolaifu business began to decline. Ribaolaifu in the country issued a notice that no longer do MLM distributors, system implementation. At that time, the national Gongshang Ju marketing management approach to marketing is defined through sales agents to consumers, while the salesman is a natural person.

So, Bora Fujiang a lot of marketing Shangdu became a corporate, the shipment give corporate pyramid schemes, as the following to make personal marketing not Ribao Laifu's thing. Ribaolaifu walking this way crossed the rectification, has now entered a stable period of development.

>>1997 in April, performance plummeted

In April 1997, China issued a "ban order", the prohibition of all marketing activities. Ribaolaifu and all MLM companies, lost.

>>1997 in September, "ribaolaifu Pudong return" event

In September 1997, the impact of the "ribaolaifu Pudong return" event in Shanghai. The cause of the incident is a MLM business because engage in illegal pyramid selling was fined hundreds of thousands of yuan, the subordinates of the MLM know this matter, gathered two or three hundred to Ribao Laifu near the Bund of Shanghai Branch for return.

At that time, the scene was very chaotic, some people break something, there are people who sleep in front of the company. Ribaolaifu to avoid trouble, put the distributors in more than 300 mattresses and about 1000000 yuan of money back. In addition because Ribao rifle to take improper means not only tax evasion, arrears countries tariff, tax and land tax, is also engaged in smuggling activities, therefore Ribao rifle in Xi'an was fined 100 million yuan, in Shenyang were detained in the 50 million yuan of goods, goods of 100 million yuan at the Lanzhou detained, also the other branch more or less have to be punished.

"Many factors make on the gradual decline of Bora Furi

Policy factors and standardized operation for ribaolaifu gradually decline. Under the pressure of business, Ribao rifle in May 1998 with Shenzhen Baoheng group guarantees from China Merchants Bank Baoan branch loan of 500 million, but the delay is unable to repaid in full, in November 1999 by China Merchants Bank charges.

The Baoan branch and ribaolaifu company to court, attracted the attention of the customs. Customs investigation discovered that Ribao rifle did not actively think of ways to pay customs duties, or transfer of property, the smuggling of raw materials, so far, already owe duties amounted to 2500 million yuan. On January 13, 2000, Shenzhen Nantou customs to take decisive measures, seized Ribao Laifu's property; and on January 21, Ribao rifle 41 Chinese senior managers also resigned, and the company in Baoan people's court court, request the court ordered the company pay arrears of wages and other costs a total of 411 million yuan. In fact, ribaolaifu 1998 loss of about 38000000 yuan loss in 1999 amounted to about 33000000 yuan more.