As predicted by observers before the meeting, the access principle of the Direct Selling Law has become the core topic of this meeting.
Due to the sensitive period before the promulgation of the Direct Selling Law, the Ministry of Commerce and the representatives of the participating direct selling enterprises kept a low profile.
Nevertheless, there are still some new news after the meeting, and the "building" of direct selling law looms.
Judging from the news that China will formulate the Direct Selling Law at the beginning of the year, what kind of entry threshold will be set by the Direct Selling Law has become a topic of concern to all sectors of society. Before the Xiamen Conference, it was a common saying that foreign capital came first and domestic capital came later. This is mainly because there is still a big gap between domestic direct selling enterprises and foreign-funded enterprises in terms of capital scale and standardization.
However, at the Xiamen meeting, the principle of "internal and external differences" in direct selling legislation was replaced by the principle of "internal and external consistency" for the first time. This news is great good news for many domestic direct selling enterprises. However, these enterprises soon found that although there is no difference between inside and outside, this does not mean that the entry threshold is lowered.
Jia Yaguang, deputy secretary-general of china health care association, said: "Although the direct selling legislation adopts the principle of internal and external consistency, judging from the contents of the draft, domestic enterprises may not usher in the spring of direct selling."
It is reported that the enterprises approved for direct sales must have the following hard indicators: the registered capital is not less than100000 USD; Foreign-funded enterprises must have at least 3 years of overseas direct sales management experience and be members of the World Direct Selling Alliance; At the time of application, the cumulative turnover of the enterprise in the first three years (continuous) must exceed 500 million yuan; Enterprises must pay a deposit of 20-30 million yuan; Enterprises should have shops and factories and only sell their own products.
Zhang Hua, chairman of Guanana, Wuhan, told the media after the meeting: "At present, apart from Tiens' transformation into foreign capital, no domestic enterprise has accumulated sales of 500 million yuan for three consecutive years. According to this draft, no domestic enterprise will meet the requirements. "
Insiders pointed out that although "internal and external consistency" is affirmed in principle, direct selling legislation will be more severe than originally expected for fear of lowering the threshold too low and triggering a new round of pyramid selling fever. Under this premise, foreign-funded enterprises will definitely take the lead. However, what is worrying is that if this standard is used as a measure, how will domestic direct selling enterprises make a living before obtaining direct selling rights?
Because Avon, Amway, Mary Kay and other large foreign direct selling enterprises are all born in the daily chemical industry, people usually classify cosmetics as the main products of direct selling. However, it is worth noting that one of the main purposes of Avon President Ms. Andrea Jung's recent visit to China is to promote Avon's health care products to the China market.
Another giant, Amway, has given people the impression that it pays more attention to health care products than daily chemical products in China in recent years. It is an indisputable fact that the health care industry is gradually popularized.
At the Xiamen Direct Selling Seminar, four domestic-funded enterprises mainly sell health food, and several newly-added enterprises with foreign direct selling background also mainly sell health food. Recently, many domestic cosmetics enterprises, whether influenced by Avon or Amway, have begun to set foot in the field of health care products. It is believed that with the promotion of direct selling legislation, health food enterprises will become an increasingly active new force.
In fact, the direct selling market is about to open, and the products that are considered to be the most suitable for choosing direct selling mode mainly include: health food, health equipment, daily necessities, beauty cosmetics and so on.
Some observers believe that the direct selling model is not suitable for all products. As one of the retail formats, it will only be valued in some industries, especially the growing industries such as health food and biological products, which have not yet reached a large scale in marketing.
Comparatively speaking, after the promulgation of the Direct Selling Law, it seems that the impact on the cosmetics market is not great.
Although many cosmetic companies are very concerned about the progress of direct selling legislation, including Avon, Amway, Mary Kay and other cosmetic companies, as far as the current situation is concerned, even after the promulgation of the Direct Selling Law, it will not have much impact on the domestic cosmetic market.
According to the analysis of marketing experts, in the cosmetics market, traditional enterprises such as Procter & Gamble, Unilever and other multinational giants have occupied half of the country in China, and the marketing means and channels are becoming more and more mature.
In addition, more and more professional beauty salons have entered the field of daily chemical products to carve up market share. In this case, there is not much room for cosmetics companies to expand direct sales.
P&G's sales in China have exceeded 654.38+0.5 billion yuan, and its dominance is very stable, which is unmatched by Avon and Amway for a long time. Even before the introduction of the Direct Selling Law, Avon has developed a new marketing model by opening a wide range of monopoly points, and it is unlikely to invest more energy in direct selling. It is also hard to imagine that Amway will reduce their attention in the field of health care products and fully develop the cosmetics business.
Although Ruxin, Mary Kay and some domestic enterprises have joined in, the cosmetics market will still maintain its inherent pattern for some time.