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China Direct Selling Industry Operational Mode and Investment Risk Analysis Report, 2013-2017

China Direct Selling Industry Operational Mode and Investment Risk Analysis Report, 2013-2017

Last Update:2014-04-28

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Preface

Table of Content

Since the announcement of "Direct Selling Management Regulation" in 2005, China's government has made steady progress in opening direct selling industry. As of the end of 2010, Chinese Ministry of Commerce issued direct licenses to 26 enterprises, including 18 foreign-owned enterprises, among which there were 10 American-owned enterprises. As of the March, 2011, there are 27 enterprises gaining licenses, and there were 12 enterprises waiting for being approved.

In 2009, the total size of China's 25 enterprises with direct licenses reached over 7 billion US dollars (approximately 46 billion Yuan). Due to the strict requirements for gaining direct licenses, many enterprises give up to apply for direct license. Under the circumstances of without restraints by the "Direct Selling Management Regulation", if the enterprises operate in the form similar to direct selling, it will hurt the health development of direct selling industry. In 2010, The Ministry of Commerce issued some related policies, transferring the direct selling product examination and approval authority to its provincial (lower) commerce departments, which will be beneficial for enterprises to accelerate the speed of introducing and upgrading products, then will provide richer products for customers. Since 2011, under the policy guide of government accelerating the transformation of the economic development methods, the enterprises of China direct selling industry have adjusted their goals at the end of 2010 and defined new development goals in 2011, and then applied in every direct selling market. Except for Avon, other foreign direct selling enterprises have almost improved their growth. According to incompletely statistics, the marketing performance of the direct selling enterprises with direct selling licenses reached up to 78 billion Yuan in 2011, with an increase of around 35%. Perfect, Infinitus, Herbalife, Nu Skin, Pro Health, Melaleuca, and Shaklee are all direct selling enterprises. Their growth of direct selling performance in 2011 are all over 30%. Moreover, the domestic direct selling enterprises increase faster than foreign direct selling enterprises. The growth of Yofoto, Tiens, New Era Group, Longliqi, Apollo Group, Joymain, Alphay and Resgreen Group all exceed 35%, while the growth of some enterprises, such as Rolmex reached up to 500%.

After direct selling mode enters China's market, it ushers in a fast development period and grows rapidly, especially China's government promote the direct selling industry develops steadily and continuously under the guidance of policies in recent years. On one hand, the state keeps banning and cracking down illegal pyramid selling all the time, and avoiding to disturb the market order; on the other hand, according to broadcasting knowledge of direct selling as well as promoting the recognition for direct selling, the state greatly stimulates the direct selling employees enthusiasm.

In the future, the market size of China direct selling industry will keep enlarging. Firstly, from the global GDP, China is the second largest economic entity, just following USA. As to the development size and speed, there is huge total market capacity and space for the development direct selling industry. Secondly, in the national "Twelfth Five-year" Plan, it raises to transform the economic growth way, from the way of investment and export-oriented way to consumption and enlarging domestic demand-oriented way, which will definitely bring bright development space to the direct selling industry.

With Forward’s long-term tracking and collecting market data of direct selling industry, we roundly and accurately analyze the industry structure system for you from the view of mastering the whole industry. This report mainly focuses on analyzing China direct selling industry’s market size, development speed and competitive landscape, depending on macro-prosperity of current direct selling industry and relying on its production and marketing condition as well as the demand trend. The report mainly focuses on analyzing the development environment of direct selling industry; the competitive situation of direct selling industry; the market situation of direct selling industry; the leading corporations' operational condition in direct selling industry; as well as the development trend and prospects forecast of direct selling industry. Meanwhile, with comprehensive and specific first-hand market data, Forward helps you to grasp the market and development trends of direct selling industry, so as to win advantages from competition!

The most distinctive characteristics of this report is forward-looking and timeliness. Through analyzing forward-looking characteristic of abundant first-hand market data, we deeply and objectively dissect China direct selling industry’s market capacity, market size, competitive landscape and characteristics of market demand. Furthermore, based on future development tracks and years' practice experience of direct selling industry, we conduct prudent analysis and forecast for direct selling industry's future development trend. This report helps direct selling industry enterprises to precisely grasp current latest developments of the industry. Afterwards, they can make wise operating decisions and define enterprises' development directions.

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, China Customs, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Notice: All the market data, especially corporations' ranking data in the report, only for business reference. Please do not take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Direct Selling Industry

 


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