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We should have a correct ideological understanding of the promulgation of these two regulations, which will constrain our future actions. In the early days of China's direct selling industry legislation, the media and direct selling industry insiders were more or less exposed to a large amount of information. It should be said that the "Direct Selling Management Regulations" are one of the most critical regulations in China's direct selling industry. During the early formulation process of this regulation, quite a few people still had a bullish mentality. When the regulations were finally written, it suddenly became a negative thing. Why does this state occur? This is also a topic I want to talk about. The sudden shift from good to bad is fundamentally a matter of perspective. Therefore, in the face of the introduction of such a regulation, we should adjust our mentality from our own perspective. Polarized ideas such as negative complaints and positive optimism are not advisable. Whether it is good or bad, it is an unbalanced mentality. People in the direct selling industry must look at it calmly and from the front based on their own reality, so as to have a more accurate positioning for future actions.

□ From an operator’s perspective, any business activity requires an open mind, a long-term perspective, and a grasp of relevant policies and trends. Under favorable circumstances, it is necessary to remain sober but not to be too optimistic. In a bad situation, don't give up easily, don't be too pessimistic, do both.

□The policy strives to share this huge profit and spread the risks from the beginning, so this is a special industry.

□What factors are considered by the Ministry of Commerce when issuing a direct selling license? The first is public safety; the second is social public interest; and the third is the development needs of the direct selling industry.

□The implementation of the "Direct Selling Management Regulations" is beneficial to many factors: First, at least the direct selling business method should be raised to a certain height and paid attention to. Second, the Direct Selling Management Regulations technically define the management methods of direct selling.

□In order to liberalize the direct selling industry, we must consider how to unleash its true functions.

Expert profile: Sun Zhongzhong, dean and professor of the Business School of China University of Political Science and Law, has participated in many important seminars during the direct selling legislation process.

■Our reporter Wang Haikun

A few days ago, at an authoritative forum in China’s direct selling industry, Sun Zhongzhong, an important participant in China’s direct selling legislation process and dean of the Business School of China University of Political Science and Law, Made a detailed judicial interpretation of the recent "two regulations" on the direct selling industry, and analyzed the key points and difficulties in the regulations. Our reporter compiled the recording of the conversation as follows:

I would like to make it clear that my speech only represents my personal views and does not represent either the official government or China University of Political Science and Law. Mainly from a personal perspective, through my own observation and understanding, I talk about some of my own opinions.

First of all, we should have a correct ideological understanding of the promulgation of these two regulations, which will constrain our future actions. In the early days of China's direct selling industry legislation, the media and direct selling industry insiders were more or less exposed to a large amount of information. It should be said that the "Direct Selling Management Regulations" are one of the most critical regulations in China's direct selling industry. During the early formulation process of this regulation, quite a few people still had a bullish mentality. When the regulations were finally written, it suddenly became a negative thing. Why does this state occur? This is also a topic I want to talk about. The sudden shift from good to bad is fundamentally a matter of perspective. Therefore, in the face of the introduction of such a regulation, we should adjust our mentality from our own perspective. Polarized ideas such as negative complaints and positive optimism are not advisable. Whether it is good or bad, it is an unbalanced mentality. People in the direct selling industry must look at it calmly and from a positive perspective based on their own reality, so as to have a more accurate positioning for future actions.

Next, I will mainly talk about six issues:

Grasp the international and domestic backgrounds

Any behavior must be chosen in the context of the overall context. See clearly the general trend and background. This reduces blindness and short-sighted behavior. Looking at the overall background, the promulgation of China's "Direct Selling Management Regulations" is in line with the general trend of the world. At present, we have to see that there are two conformities, that is, conformity to the general background of the world and the general background of China.

First of all, from the perspective of the world, the introduction of China's "Direct Selling Management Regulations" must be viewed from the perspectives of internationalization, marketization, and informationization.

From an international perspective, China has integrated with the world. Especially after joining the WTO, it can be said that there is neither a domestic nor a foreign market. Our business process is already a typical international competition. . At present, many markets have been opened, including the circulation field and the direct selling industry, and there is no distinction between domestic and foreign capital. As long as the areas are liberalized, the Chinese can do it, and so can foreigners. This means that any of our choices and thinking must be placed in the context of internationalization. At present, even the products we use cannot be single-identified as to which country they are from, because the production line process, from raw material configuration to production technology, has become an international process.

From the perspective of marketization, marketization is a new term to the Chinese people. In 1992, China officially decided to pursue marketization, and people began to become familiar with this term. But from the perspective of the development of China as a whole, China's marketization still needs a process. To a certain extent, we are also exaggerating. But we have already integrated with international standards, and many international business activities are operated according to market orientation. Therefore, from an international background, marketization is inevitable. It can be said that if it had not been for marketization and if China had not joined the WTO, the direct selling industry would not have been able to open up so quickly. Therefore, since the entire world is trending toward marketization and our economic system is also a market economy with socialist characteristics, our country should also follow the path of marketization in line with international standards.

From the perspective of informatization, the so-called "informatization" refers to the use of various informatization means. The rapid development of informatization has accelerated the process of internationalization and marketization. We now also see that there are more and more information channels. In the past, the market was relatively closed and information was blocked to a certain extent. In the context of smooth information, everyone will have access to relevant resources. The process of market informatization provides everyone with many opportunities while reducing the risk of behavioral choices.

In the context of internationalization, marketization, and informatization, direct selling is a very common, popular, and popular marketing method in developed countries and regions. Simply put, it is a business method in the circulation field that is in line with international standards. Therefore, direct selling and internationalization are also intrinsically linked. If you want to be in line with international standards, your marketing and circulation methods must be in line with international standards. Direct selling is indeed incomparable to many operating methods in market operations. Because it is a marketing method where consumers and sellers meet directly. We say there are several marketing methods, but the marketing method that affects consumers is called direct group in sociology. Purchasing behavior may be caused by advertising or other channels, but in the marketing process, the biggest impact on consumers is direct consumption. From this point of view, direct selling is a very effective way to buy and trade. Therefore, from the perspective of market development, it is inevitable for companies to engage in direct sales and for consumers to choose direct sales. In addition, from an information point of view, people now choose products not by purchasing the product itself, but through various information channels such as advertising. In other words, during the purchasing process, he spends some money to buy it. this information. So, in market transactions, who can provide more and more direct market information? In theory, direct marketing can provide comprehensive and direct information. Therefore, from the perspective of internationalization, marketization, and informationization, direct selling is consistent with the development of the entire society.

Secondly, let’s take a look at China’s background. We must take an objective stance, maintain a peaceful mind, and make calm judgments. There is no doubt that China's overall background is the pursuit of development and economic construction as its central task. But we must pay attention to the fact that many of the policies and guidelines formulated by China must be consistent with the thinking of the country's leaders, and must be based on the basic policies and the model we choose. If we say that China's policy is "stable development, reform and opening up", it will be the same as before. We cannot underestimate this approach, which will affect a series of principles and policies.

At present, some of China’s direct sales are non-direct sales and non-economic fields. There are many marketing channels, and direct sales is also penetrating. Its business method is to penetrate into each user one-to-one. The great feature of direct selling is its interactivity. China really needs to follow the development of world marketization. In addition to considering Chinese characteristics, it must also consider integrating with international standards. Direct selling in China focuses on parameters other than direct selling. Of course, it is not impossible to consider factors other than direct selling. When and what context Consider more contextual factors in direct selling. In order to liberalize direct selling, we must consider how to exert its true function. This is a question worth exploring.

The balance between government supervision and market mechanisms

The establishment of a platform between government supervision and market mechanisms is another issue worthy of discussion and consideration. Since China has chosen marketization, it means recognizing that this market mechanism plays a positive role in our development process. In this development process, how do the government and the market interact and how do they achieve a relative balance? If the government's relative mechanisms and management are too heavy, it will be detrimental to the development of the market to a certain extent. Therefore, the country is currently adjusting this relationship in many fields during the entire reform process. In the field of direct selling, there are also such misunderstandings about how to increase the operation and implementation of direct selling on the entire market. If the market influences and restricts it, it means whether to choose direct selling is a major strategy for business operations. If you don't do well, you will be eliminated naturally. But today, this issue is indeed difficult to achieve the ideal balance. Because the mechanism in this regard has not yet been established. This issue must be considered for the normal development of the Chinese market. China's economic development all involves the balance between market mechanisms and supervision. Direct selling should be left to the market and regulated by the government. As far as the current situation is concerned, we may use less direct sales market mechanisms and more control from the government.

There is another issue. Government surveillance can be strengthened under certain circumstances, but the issue of regulatory capabilities is worth considering. How to regulate? Which ones should be managed? Which ones should be stronger are debatable.

Determination of single or multi-layer remuneration

Another most sensitive issue is whether the remuneration should be single or multi-layered. The "Direct Selling Management Regulations" clearly stipulate that there is a single level, direct sales are sold directly by direct sellers, and so-called offline sales are not allowed. On the one hand, this kind of direct sales facilitates supervision, and on the other hand, it can control the intensity. The "Direct Selling Management Regulations" reduce the development offline and reduce the so-called head-pulling and other phenomena that no one wants to see. In fact, as long as we set up an exit mechanism, this phenomenon that we did not want to see in the past can be alleviated to a certain extent and some invisible risks can be alleviated. Therefore, in the process of direct sales, its function and permeability must be reflected. As long as an exit mechanism is set up, his risks will be mitigated to a certain extent. The business charm and function of direct selling lies in penetration. But how to reduce the functions and risks of direct sales penetration? This is also a headache for the government. I personally believe that as long as an exit mechanism is set up, it is possible to mitigate its risks to some extent. The content and functions of direct selling operations may be permeating. If it is not allowed to permeate, it will lose certain aspects of its functions. The key is to directly reduce the instability it brings to society and the risks it brings to individuals. We must actively think of ways to not only bring into play the true functions of direct selling, but also reduce its negative functions. Relying on cancellation and control alone, there may be no safety risks in the short term because it is mandatory and there is no room for negotiation. But in the long run, it won't work. Direct selling has such a unique effect. I also believe that direct selling will also affect the concepts of decision-makers in the development process, which will inevitably cause high-level decision-makers to make conceptual explanations on this issue to a certain extent.

In addition, the issue of remuneration and multi-level issues also involve the issue of whether direct selling has a positive effect on direct sellers, and whether it can play the role of direct selling in penetrating the market. This should be explained in the context of the specific implementation of the regulations.

Generally speaking, the information disclosed in the regulations sets higher thresholds: credibility threshold-five years of experience without any violation; economic threshold-that is, a capital threshold of 100 million.

At the Xiamen Conference last year, it was proposed that companies should take responsibility for self-recommendations, so a credibility threshold was added. The company's reputation and brand must bear its own responsibility for whether to choose direct selling, because I believe that if a company wants to do direct selling, it will cherish its reputation and brand. Because in the sales process, there is information asymmetry between the salesperson and the consumer. Information asymmetry means consumers and shoppers often rely on brands as a guarantee. Therefore, a good direct selling company will value its credibility. Judging from the regulations, whether the high threshold is beneficial or detrimental to China's current development will depend on a period of trial operation and whether the market can be cultivated.

In addition, the current basic starting point of legislation is to consider limited direct selling. This limit includes restrictions on the issuance of direct selling licenses; including the levels and limited control of direct selling; including the allocation of remuneration. control. Now, I also know that there are many opinions and suggestions on this direct selling regulation from all walks of life, and there is even a high-end discussion by the government. Because everyone thinks this regulation needs to be discussed. Therefore, we should not immediately think that it has turned negative again. We should note that a country and a policymaker still want this country to develop and become rich. But because of its specific context, its specific history, he had to consider the balance of the entire relationship. From an expert's perspective, there is still room for discussion on direct selling legislation. But while the discussion is still going on at the top, people at the bottom remove the basis for discussion, and it becomes more difficult. Therefore, we should look at the problem with a calm mind. An operator with achievements and business wisdom can find opportunities when no one sees them; he can turn risks into safety when everyone considers them to be the greatest risks. In my opinion, since there is a general trend here, we should be able to take advantage of it. This is the challenge for us. If everyone thinks it is an opportunity, there will be a problem. I don’t want China’s direct selling to be involved and concerned by decision-makers at the beginning, and lose the opportunity for discussion. Therefore, direct selling companies must take a long-term view. There will be short-term difficulties, but in the long-term, the opportunities will outweigh the risks. In the short term, I believe that it will be beneficial to everyone to cultivate this market through everyone's cooperation. Everyone is willing to get what they want in such a viable market. The government is also willing to see this situation. Therefore, direct selling has an effect on the opening up of China's entire market economy. And the entire legislation on direct selling will still go through some processes. But I believe that since direct selling is a business method with special business functions, it is very welcome from the perspective of the country and scholars, because after all, it is a new thing in China. After all, there are still many wise people in China, and I believe they will come up with many good methods.

Personally, the key lies in the mentality and point of view from which everyone looks at the problem. This is what we are going to discuss.

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