In China, although both direct selling and promotion belong to the category of direct selling, they are different forms of direct selling.
Traditional sales promotion is a sales form in which a salesman sells goods directly to customers.
The popular direct selling in the world is a promotion form in which direct sellers introduce products to customers and show their uses by holding various product promotion activities. Direct sellers don't come to sell goods.
However, since Amway, Avon and other foreign direct selling enterprises landed in China market, the popular forms of attracting customers, explaining products and realizing sales by holding various activities abroad have been transformed by the direct sellers in China, and several direct selling forms with China characteristics have been formed.
Its direct selling methods are:
1. Franchisees specialize in direct selling products produced by themselves or manufacturers.
2. Up-and-down direct selling form of specialty store+direct seller.
3. The direct selling method with shops as the sales center and salesmen from all directions selling at home.
4. Distributors recruit direct sellers, sell at different levels, purchase at different levels, and divide them at different levels.
5. Direct telephone sales.
6. Direct mail.
7. TV direct sales.
8. Internet marketing.
9. Face-to-face direct sales.
10, e-commerce network+horizontal alliance network+direct sales network, a brand-new interactive marketing model.
Direct selling must have "two elements" and "three conditions"
Direct selling must have two elements: high-quality products and high-quality services. If the direct selling industry wants to proceed smoothly, it must have corresponding conditions.
20011Samuel Huang, general manager of Amway East China, said: overseas, the success of direct selling enterprises requires three conditions: strict legal norms. Industry self-discipline, that is, the self-discipline and norms of direct sellers. Consumers and the public's understanding of direct selling. Direct selling originated in the United States in the 1950s.
Due to the rapid development of American capitalism at that time, the gap between the rich and the poor became wider and wider, resulting in the following social phenomena: about 80% of the wealth was held by about 20% of the rich. Because the poor are poor, they have no chance to change the status quo of poverty. At this time, facing the social reality of extreme inequality between the rich and the poor, two graduate students of Harvard University in the United States have developed such a career in the field of commodity marketing: it can make the poor change their destiny. Let the rich consume goods. Let the wealth of practitioners multiply. This ideal professional marketing model, which is permeated with solving the problem of the rich and the poor in society, is the direct selling model.
After this sales model was introduced into the society, it soon produced an unprecedented market effect: many enterprises found a market for unsalable products. Make the depressed American market gradually full of vitality. Meanwhile, many unemployed people have found jobs. Many poor people have joined the ranks of the rich because they are engaged in direct selling. As a result, this new marketing method spread rapidly and prevailed. Soon, it became a fresh and dynamic marketing model, sweeping the American market.
Direct selling in history is pyramid selling.
During the period of 1945, the founders of Nutrilite Niu Le Company, Lee Martinger and William Carson Berry, created a unique direct marketing plan in practice, which is the basic model of pyramid selling now. The way it works is that direct sellers can get a 35% discount when they buy goods from them. If the direct seller can recruit 25 people and each franchisee can buy a month's supply, then the direct seller can become a sponsor. At this point, his own customers and his dealers can place orders directly with him. Direct sellers can get 35% profit from the sales they sell to customers. Offline dealers can draw up to 25% of sales. When the online dealer and his offline dealer accumulated 150 customers, he became the "agent" at the top of the pyramid. If offline dealers also become agents, online dealers can extract 20% from their total sales. Examples of direct selling enterprises
The founders of Amway, Wen Ange Ge and Devise, used to be direct sellers of Nutrilite. 1959, they left Nutrilite Company to set up Amway (A) Company, reformed Nutrilite's original pyramid scheme, and then sold self-made detergent, which achieved great success.
From 65438 to 0960, Amway's first fiscal year sales exceeded $500,000.
196 1 year, Amway held the first direct seller conference, and there were 200 direct sellers that year.
1963, Amway established its first foreign branch in Canada, which marked Amway becoming a multinational enterprise.
1964 Amway has established seven competent departments.
During the period of 1965, Amway set up a professional fleet of eight aircraft, which provided convenience for the company's top management to handle global business.
That year, Amway held its first overseas direct selling seminar. There are 14 excellent direct sellers attending the meeting.
From 65438 to 0969, Amway suffered a devastating fire, and its foundation for more than ten years was almost destroyed. However, half a year later, a more complete and magnificent factory was born in Amway headquarters.
From 65438 to 0970, Amway's revenue exceeded 1 billion dollars.
197 1 Amway has set up more than 50 branches around the world, covering more than 80 countries and regions.
1975, the U.S. Federal Trade Commission accused Amway of illegally pricing and exaggerating its income, and suspected that Amway operated in a pyramid way, and began to conduct a comprehensive investigation on Amway.
1979, the U.S. Federal Trade Commission made a final ruling, declaring that Amway's direct selling is a legitimate business, and Amway's operating model has become the yardstick for judging legal direct selling and illegal pyramid selling.
From 65438 to 0980, Amway's sales exceeded 1 100 million yuan.
198 1 year, Amway has 525 patents, and another 3 19 patents are still being applied.
From 65438 to 0990, Amway's total revenue reached $2 billion.
In 2002, Amway's global turnover reached $4.5 billion.
Amway's direct selling model and benefit distribution system have been in operation in more than 80 countries around the world for more than 40 years. Reader's Digest, the magazine with the largest circulation in the world, has reported and introduced Amway and its system four times.
Caixun, the magazine with the largest circulation in Taiwan Province Province, once reported the development of Amway in Taiwan Province Province with the title "Charming Amway Career, Impeccable Amway System".
In 2003, Economic Daily Press published Mr. Wang Ciguan's Amway Career, which introduced the situation of Amway in China from the aspects of marketing concept, corporate culture, product characteristics, marketing model and salary system.
On the other hand, China Radio and Television Publishing House focuses on the basic situation of nine direct selling enterprises, including Amway, with the theme of "The Trend of Direct Selling".
"Knowledge Economy" magazine published a series of articles on how to create wealth by direct selling with the title "Why does Amway win", which comprehensively introduced Amway's corporate culture.
China attaches great importance to direct selling. At present, Luo Mai Science and Technology Co., Ltd. is a state-owned enterprise, which is called:
The only company in China that won the most investment brand value award and the most consumer brand value award.
And it is the only company in China that has designated products for the existing old Red Army and obtained five national certifications.
At present, the only company in China has a direct selling license and an e-commerce license issued by the Ministry of Commerce.
Amway is in China
The development track of Amway's entry into China is as follows.
1992, Amway invested 1 100 million yuan to set up a factory in Guangzhou. In the same year, 10, Amway's direct selling model was approved by the State Administration for Industry and Commerce.
From 65438 to 0995, Amway Company promoted Amway's "Store-free Direct Selling Model" in China.
From 65438 to 0997, Amway's sales in China reached/kloc-0.5 billion yuan.
From 65438 to 0998, Amway was restricted by the China government's total ban on pyramid selling, and its sales still reached 320 million yuan.
From 65438 to 0999, Amway's sales in China amounted to 640 million yuan.
In 2000, Amway's sales in China amounted to RMB 2.4 billion.
In 200 1 year, Amway's sales in China amounted to RMB 4.8 billion.
In 2002, Amway's sales in China were RMB 6 billion.
In 2003, Amway's sales in China amounted to RMB 654.38+RMB 006 million.
Amway has an active marketing force of 6.5438+0.3 million and 4,000 employees in China. By the middle of 2003, it had paid 5.8 billion yuan in taxes to the state.