Amway Avon is in a different mood during the one-year direct marketing transition period

The Ministry of Commerce and the State Administration for Industry and Commerce issued an announcement yesterday, stating that all relevant regulations for foreign-invested enterprises that were previously announced will be abolished from December 1 this year.

The Ministry of Commerce stated that the “Regulations on Direct Selling Management” promulgated by the State Council was formally implemented on December 1, 2005. After research, it decided to repeal the previously announced regulations on foreign-invested enterprises in transition on December 1, 2006.

The Ministry of Commerce and the State Administration for Industry and Commerce also stated that, as of December 1, 2006, those who had not obtained a direct sales license in accordance with the law and engaged in business activities with stores and merchandising sales personnel were mutatis mutandis to Article 39 of the Direct Marketing Regulations. The provisions of the approval of direct marketing activities investigated and dealt with. The salesperson here refers to a non-corporate official employee who obtains labor compensation by selling products for the company.

The publication of this announcement did not cause too much reaction in the industry. Amway said that this means that the Ministry of Commerce has given a year of "transitional period" to 10 foreign-invested transformation enterprises in the year. The transitional direct selling company must obtain a formal direct sales license within one year, otherwise it will be unable to continue direct selling business after one year. . Therefore, Amway will strive to obtain direct sales licenses as soon as possible. It is understood that the first batch of direct sales licenses are expected to be officially released before March 1 this year. At present, major direct selling companies are in full swing.

Avon said that this rule has no effect on Avon. Since 1998, Avon has fully transformed itself into a traditional wholesale and retail model and opened more than 6,300 retail outlets nationwide. At the same time, Avon won the first and only direct sales pilot license in April last year, allowing it to be launched in some provinces and cities. Single-level direct sales.

On April 18, 1998, the State Council issued the "Notice on the Complete Prohibition of MLM Business Activities", which completely prohibited direct sales. On June 18, 1998, the Ministry of Foreign Trade, the National Bureau of Internal Trade, and the State Administration for Industry and Commerce jointly issued the “Notice Concerning Issues Concerning the Transformation of Sales Modes by Foreign-invested MLM Enterprises” (Foreign Trade and Economic Cooperation Paper No. 455), which stipulates foreign-invested MLM companies Must be converted to store operations to promote business transformation. In the same year in June of the same year, 10 foreign-funded enterprises were approved to use the “shop + salesman” approach to transform their business, namely: Amway, Avon, Mary Kay, Rifai, Forte, Naris, Schall, Perfect, Baimei, Tupperware. .