The Classification and History of Direct Selling Mode

Direct selling, also known as "non-fixed sales", means that products reach consumers directly through direct sellers.

In China, direct selling and sales promotion are both within the scope of direct selling, but they are two different forms of direct selling.

traditional sales promotion is a sales form in which a salesman comes directly to the door to sell goods to customers.

The popular direct selling in the world is a form of promoting sales by the direct seller to introduce products to customers and demonstrate the use of products by holding various product promotion activities. Direct sellers don't sell goods door to door.

However, since Amway, Avon and other foreign direct selling enterprises landed in China market, the popular form of attracting customers, explaining products and realizing sales by holding various activities abroad has been transformed by the direct sellers in China, forming several direct selling forms with China characteristics.

Its direct selling methods are as follows:

1. The direct selling methods that franchised stores specialize in selling products produced by themselves or manufacturers.

2. The direct selling form of exclusive store+direct seller.

3. The direct selling mode that takes the store as the sales center and the salesmen from all directions come to the door to promote their products.

4. Distributors recruit direct sellers through the direct selling methods of layer-by-layer promotion, layer-by-layer purchase and layer-by-layer sharing.

5. Telephone direct sales.

6. Direct mail.

7. TV direct selling.

8. Internet marketing.

9. Face-to-face direct selling.

1. A new model of interactive marketing, in which e-commerce network+horizontal alliances network+direct selling network are integrated.

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.

at the end of November, 21, Samuel Huang, general manager of Amway China in 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 195s.

Due to the rapid development of capitalism in the United States at that time, the gap between the rich and the poor became wider and wider, resulting in the following social phenomenon: about 8% of the wealth was held by about 2% of the rich. The poor people have no chance to change the status quo of poverty because of poverty. At this time, in the face of the social reality of extreme inequality between the rich and the poor, two graduate students from Harvard University in the United States have developed such a career in 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 to the society, it soon produced an unprecedented market effect: many enterprises found a market for their unsalable products. So that the depressed American market is gradually full of vitality. At the same time, many unemployed people found jobs. Many poor people have entered the ranks of the rich because they are engaged in direct selling. As a result, this new marketing method quickly spread and prevailed. Soon, it became a fresh and dynamic marketing model that swept the American market.

Direct selling in history is pyramid selling

In p>1945, the founders of Nutrilite Leniu Company, Lee Mattinger and William Carson Berry, created a unique direct selling plan in practice, which is the basic model of today's pyramid selling system. The way it works is that the direct seller can get a 35% discount on the purchase of goods from them. If the direct seller can absorb 25 people to join, 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 distributors can extract up to 25% of their sales. When the online and offline dealers accumulated 15 customers, he became the "agent" at the top of the "pyramid". If the offline dealers also become agents, at this time, the online dealers can draw 2% from their total sales. Examples of direct selling companies

The founders of Amway, Wen Ange and Di Weisi, used to be direct sellers of Nutrilite. In 1959, they left Nutrilite Company to set up Amway (A) Company, reformed Nutrilite's original pyramid scheme, and then sold self-made detergents, which achieved great success.

In p>196, Amway's sales in its first fiscal year exceeded 5, US dollars.

in p>1961, Amway held its first direct seller conference, and there were 2 direct sellers in that year.

In p>1963, Amway established its first foreign branch in Canada, which marked Amway becoming a multinational enterprise.

in p>1964, Amway established seven competent departments.

in p>1965, Amway set up a professional fleet of eight planes, which provided convenience for the company's top management to handle business around the world.

In that year, Amway convened the first overseas direct selling seminar. There are 14 excellent direct sellers attending the meeting.

In p>1969, Amway suffered a devastating fire, and its foundation for more than ten years was almost destroyed. However, six months later, a more complete and magnificent factory was born in Amway headquarters.

in p>197, Amway's revenue exceeded $1 million.

in p>1971, Amway has set up more than 5 branches around the world, and its business scope has spread to more than 8 countries and regions.

In p>1975, the US Federal Trade Commission accused Amway of illegally setting prices and exaggerating income, and suspected that Amway operated in a pyramid way, and began a comprehensive investigation into Amway.

In p>1979, the Federal Trade Commission of the United States made a final ruling, declaring that direct selling by Amway was a legal undertaking, and Amway's operation mode became the yardstick for judging legal direct selling and illegal pyramid fraud.

in p>198, Amway's sales exceeded 1 billion yuan.

in p>1981, Amway had 525 patents, and another 319 were still being applied.

in p>199, Amway's total revenue reached $2 billion.

in p>22, Amway's global turnover reached $4.5 billion.

Amway's direct selling model and benefit distribution system have been in operation in more than 8 countries all over the world for more than 4 years. Reader's Digest, the magazine with the largest circulation in the world, has reported and introduced Amway Company and its system for four times.

Caixun magazine, which has the largest circulation in Taiwan Province Province, once reported the development of Amway in Taiwan Province with the title of Charming Amway Career and Impeccable Amway System.

In 23, Economic Daily Publishing House published Mr. Wang Ciguan's Amway Career, which introduced Amway's situation in China from its marketing concept, corporate culture, product characteristics, marketing model and salary system.

China Radio and Television Publishing House, with the theme of "The Trend of Direct Selling", mainly introduced the basic situation of nine direct selling companies such as Amway.

Knowledge Economy magazine published a series on direct selling and wealth creation with the theme "Why Amway Won", which comprehensively introduced the corporate culture of Amway.

China attaches great importance to direct selling. At present, Luomai Technology Co., Ltd., a national enterprise, is praised as:

The only company in China that has won the most investment brand value award and the most consumer brand value award.

and it is the only company that has been designated to use products for the existing old Red Army in China, and has 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 in China

The development track of Amway in China is as follows.

In p>1992, Amway invested 1 million yuan to set up a factory in Guangzhou. In October of the same year, Amway's direct sales model was approved by the State Administration for Industry and Commerce.

In p>1995, Amway Company promoted Amway's "Store-free Direct Selling Model" in China.

In p>1997, Amway's sales in China reached 1.5 billion yuan.

in p>1998, Amway was restricted by the China government's policy of completely banning pyramid selling, and its sales still reached 32 million yuan.

In p>1999, Amway's sales in China were 64 million yuan.

In p>2, Amway's sales in China were RMB 2.4 billion.

In p>21, Amway's sales in China were RMB 4.8 billion.

In p>22, Amway's sales in China were 6 billion yuan.

in p>23, Amway's sales in China was 1.6 billion yuan.

Amway has an active marketing force of 13, and 4, employees in China. By the middle of 23, it had paid 5.8 billion yuan in taxes to the state.