2016-10-10 16:13

 

Success or failure is the direct selling market in China, the size of the future can be up to 500 billion?

 

[news] October 10th Beijing report (twenty-first Century economic report) from AVON Chinese, has been rumored. But reporters found in nearly half a month's interview, AVON abuse me thousands of times, I still need to be AVON, such as first love, AVON's dealers are still looking forward to the 130 year old AVON can glow with a new luster.
Reporters found in the survey, AVON dealers on their own recognition of their products are relatively high, that their quality is not lost to other multinational cosmetics brands, AVON R & D, technology and other industries ranked in the front. "Will continue to do", which is the majority of dealers still adhere to the sound.
But years of follow AVON dealers also does not care about AVON's years of marketing problems, and realize that this is the main reason for the slow development of the AVON Chinese in recent years.
Success or failure are all direct sales?
Direct selling has dual attributes, on the one hand it can use a very valuable in marketing innovation and marketing breakthrough in the field of enterprise, compared with the traditional business mode for shortening the process, the traditional "manufacturers - agent - agent - agent - wholesalers - shop - consumer" mode change "factory - distributor - Consumer", in terms of the three party is a win-win situation.
Research institutions predict that by 2020, is expected to China direct selling market size in about 500 billion yuan, if the prediction is reliable, so the direct market is far from saturated industry, five years, 300 billion yuan incremental space. Commerce department direct marketing industry management information system, as of press time reporter, the domestic market a total of 78 direct selling companies.
But another aspect of direct marketing is a high risk industry and model. According to the China direct public opinion research center data show that negative complaints of direct selling industry in 2013 showed a rapid growth trend, an increase of up to more than 30%, and in some areas such as Shandong, Hunan, Anhui and other negative complaints surge.
In fact, even the public image of good Amway, unlimited, perfect, new age, stage of negative frenzy in 2013, especially the leading enterprises of Amway, the greater the influence, the higher the degree of concern, the 7 consecutive month of negative news complaints. So far, all of the direct selling is mixed.
Has been engaged in direct sales category of industry experts Wen Jiuhong pointed out that the distribution structure of the five categories of 2012-2015 years of direct selling products, cosmetics and other categories have been faced with excessive competition problems. And from the development process of AVON, in recent years, its direct sales model because of its swing strategy is greatly affected.
AVON in 1990 to enter the Chinese is going into the direct model of the United States, reached a climax in 1997 this pattern, also may be AVON direct sales in the largest China period, public data show that when AVON Chinese direct sales reached 350 thousand, turnover of 1 billion yuan. But because of China's national conditions, in 1998 to crack down on pyramid schemes, AVON and other enterprises of the direct sales model has also been listed as the forbidden area". Since then, AVON has four changes in China's marketing model.
From the four changes can be seen in AVON, hovering in the retail and direct sales, but more inclined to direct the "line", in the 2015 annual report, AVON still vigorously affirmed the direct sales model, the future is based on change.
And the above to get a direct selling license Amway, no limit, etc., have been quietly change. Such as Amway in the store channel after years of implementation, and now the experience of the facility as a store 2 to re upgrade, and in the global promotion. A Amway executive said that Amway currently has 40 stores and experience the museum, it is estimated that in 2019 will complete the layout of the country, to reach 260 stores and experience the museum.