Best World

[kelvesy]

E-commerce platform is rather big in China. Just look at how many customers flock to Taobao website? 100million, the word from Jack Ma himself.

Sometimes, I feel, buying online is rather dangerous. You don't consider and you just trigger-happy and purchase the goods. It might be a good thing for BWL.

I have done my research on the management personality and character, you can watch number of videos and try to deduct for yourself the type of character they are. Recently, they had their Jubliee. The management is VERY motivated to push the business performance forward. I stand together with Boon.

Getting late, good night.

[Boon]

5 years ago it was BWL's 20th anniversary - Bonus Warrants Issue was proposed by the Management to reward Shareholders in conjunction with the twentieth (20th) anniversary celebrations of the Company.

http://bestworld.listedcompany.com/newsr...F6E9.1.pdf

This year is the Silver Jubilee - wondering if Shareholders would be rewarded again in one way or another in conjunction with the celebrations - ha-ha !

(vested)

[Boon]

直销牌照大跃进祸兮福兮 助推双轨制违法行为？

中国经济网北京7月24日讯（记者 臧允浩）7月21日，商务部直销行业管理信息系统显示，金科伟业（中国）有限公司获得直销经营许可。这已是今年来第14家公示获得直销牌照的企业。而2014年、2013年，获牌企业分别为7家、9家。更早之前，2008～2012年的发牌总数为13张。

　　对此，有业内人士担忧牌照发放“大跃进”会加大监管难题，引发行业混乱。“新企业大量涌入，以更具诱惑力的"双轨制"等激励模式大行其道，导致鼓吹事业机会、拉人头现象，易引发违规甚至违法行为”。也有观点认为，大量发放直销牌照是市场需求使然，也会促进行业良性竞争，打破牌照垄断。除此之外，也有专家关注未来监管的力度：“政令一出，行业走向何方，还要看后续动作，监管部门能否做到"宽进严管"将是关键”。

　　直销牌照发放“大跃进”

　　中国经济网记者查询商务部直销行业管理信息系统发现，截至7月23日，获得直销牌照的企业已经达到62家。

　　值得注意的是，2015年1月至今，已经有14家企业获得牌照。包括金科伟业（中国）有限公司、吉林市新科奇保健食品有限公司、大连双迪科技股份有限公司、浙江康恩贝集团医疗保健品有限公司、北京东方红航天生物技术股份有限公司、大溪地诺丽饮料（中国）有限公司、圃美多（中国）有限公司、山东永春堂集团有限公司、河北华林酸碱平生物技术有限公司、山东东阿阿胶股份有限公司、山东福瑞达医药集团公司、山东卫康生物医药科技有限公司、内蒙古宇航人高技术产业有限责任公司、福维克家用电器制造（上海）有限公司

　　从直销行业2006年～2013年发牌数量可以看出，2007年曾出现过一次发牌的井喷现象，一下发出17张，创历史记录。不过，随后多年，申牌进入艰难跋涉期，符合要求并审核通过的企业越来越少，2008～2012年仅共发牌13张。而2013年，这种情况得到极大改变，一年发出9张牌照。相比之下，有媒体预测，按照这个趋势，近年的发牌数量有望超过过去，创下历史新高。

　　对于这一现象，有业内人士指出，过去，在直销牌照申请的过程中，申牌流程繁琐，且不少企业对审批流程不熟悉，递交的材料不完整，极大地影响了申牌的速度。从2005年到2015年，直销行业通过十年法制化的运行，已经达到了一定的规模。十年的运行，整个行业更加成熟，行业内涌现出一大批优秀的直销企业、企业高管、系统领导人和经销商。曾经一些在申牌的过程中贪大求全，想在短时间内申请全国获跨几个省的直企，也有了更多的借鉴，申牌企业所获得专业化指导更多，相关企业学会了借力，在申牌过程中采取了务实态度，牌照也更易获得。同时行业越来越成熟，政策也随之有所调整。随着改革的深入，市场活力和内生动力被激发，市场在资源配置中的决定性作用不断得到体现。

　　世界直销（中国）研究中心专家委员秦永楠对中国经济网记者表示：“十八大以后，中国进入经济体制改革，推进了工商登记与商事登记等一些列制度改革，这一大环境推动了直销牌照申请的进度。如果现阶段政策环境不变，预计未来获牌企业会突破200家”。

　　祸兮福兮？

　　直销牌照发放的井喷，也引发了业内对此的大讨论，有人认为这将是对直销行业大利好，会拉动经济增长、解决就业；有人则认为这是一把双刃剑，随着大量企业的进入，直销行业面临前所未有的监管难题，如果不能落实“宽进严管”，则将对行业带来不良影响。

　　中国保健协会直销工作委员会执行主任胡远江认为，直销牌照发放增多是一把双刃剑，有利好也有隐忧。

　　“直销牌照井喷说明政府对行业有信心。整个行业市场因素在起作用，市场需求决定更多的企业参与进去。因为直销牌照的发放，整个行业打破垄断经营的局面。垄断经营是无法用市场经济的杠杆来调节的，这种情况下会形成特权经济、牌照经济、不利于市场的公平竞争。未来如果监管行之有效，行业会形成一个越来越良性竞争的局面”，胡远江表示。

　　除此之外，胡远江也向记者强调要关注这把双刃剑的另一边。“牌照发放越来越多，对职能管理部门将是一个挑战。大量直销企业涌入，行业中会有变革有创新，也会形成不成熟、不合规的模式，监管部门需要密切关注才能消除。此外，牌照越发越多，监管层对直销企业申牌资质的把控也要与时俱进，这正是擦亮火眼金睛的时候，要保证每一个新进入行业的企业，不会破坏既有的公平性”。

　　胡远江还表示：“企业增多，相应的从业人员也会增多，但如何消除这些人员素质的良莠不齐，避免出现各种不规范的行业乱象，也是值得注意的”。

　　对于管理上的难题，知名直销理论研究专家王义也表达了类似的担忧，随着直销企业的增多，经销商队伍基础也倍增，管理困难随之而来。首先，直销的业务员和企业并不是直接的隶属关系，充其量只是一种合作关系，趋利性造成了一些业务员不合规经营、夸大产品功效甚至有涉及传销的嫌疑，而这些违规行为的曝光，对于直销企业的影响是极大的。

　　“同时，现代社会有些追求一夜暴富追名逐利的人，听闻直销行业能赚钱而加入进来，但实际没有得到预期的结构，就开始通过举报来泄愤或索取补偿，引发直销行业混乱，加剧外界对直销行业的不良印象”，王义还指出，一些直销企业为了吸引优秀经销商，会大幅提高待遇，不惜代价从别的企业挖人，也导致企业间出现恶性竞争的趋势。“奖金拨比越高，那么资金从何而来？总有资金来填补这个缺口，这有可能导致企业偷税漏税”。

　　一位不愿具名的业内人士则对中国经济网记者表示了担忧：“牌照大量发放，新企业为了吸引经销商加入，会抛出更有诱惑力、更激进的制度来，而尤以双轨制居多，双轨制的特性则导致拉人头现象普遍，触及违规红线”。

　　据悉，双轨直销制度（Binary Plan）俗称两条腿走路的制度。双轨直销制度的主要内容是：每个经销商只能开发两个销售市场，以A经销商为代表的A市场和以B经销商为代表的B市场。如此发展下去，形成一个销售网络体系；如果该经销商又开发了第三市场C经销商，那么第三市场C经销商只能放在A市场体系或B市场体系中，而不允许放在自己名下；这样一来既扩大了A的薄弱市场，同时又帮助了该市场中相关联的人。

　　“不过，这只是表面上的现象”，上述业内人士称：“实际上，双轨制不是以销售产品业绩来论功行赏，而是以"拉人头"数量为主的奖励制度。因此说双轨制是不健康的报酬制度；这是一种直销企业快速圈人、圈钱的生存手段”。

　　据其介绍，双轨制可以躲避聚会宣讲、教育培训发展营销团队。开始只要发展两个人的简便发展模式就能生存，可有效躲避监管。此外，因为双轨制度不是靠销售致富，不以推销产品为主，所以双轨制公司的产品假、冒、伪、劣多。大多数双轨制度规定营销人员在入职时，必须强迫新人自己先认购商品，甚至认购多份单，以满足公司和上线的快速敛财。

　　不过，王义告诉中国经济网记者：“双轨制归根究底只是直销企业的一种奖励制度，本身无可厚非”。

　　胡远江则更关注接下来行业对上述隐忧的规避问题。“这需要企业与监管部门的共同努力。直销企业要以销售为基础，产品为核心，进行资源的合理分配，建立一个规范的制度。监管层则要做到"规直与打传"双管齐下，既要规范直销企业的行为，也要打击一部分披着合法外衣做传销的不法分子”。

作者：臧允浩

http://business.sohu.com/20150724/n417420354.shtml

[Boon]

2Q2015 results:
 
2Q Revenue (SGD million):
2Q2009 = 20.755
2Q2010 =   9.874
2Q2011 =   9.702
2Q2012 = 13.593
2Q2013 =   8.819
2Q2014 = 18.278
2Q2015 = 21.029 (Highest 2Q revenue in the last 7 years)
 
Comments:
1) 2Q2015 revenue was the highest 2Q revenue in the last 7 years.
 
Revenue (SGD Million)
1Q2014 = 12.802
2Q2014 = 18.278   (1H2014 = 31.079)
3Q2014 = 19.229
4Q2014 = 24.957   (2H2014 = 44.176 ; FY2014 = 75.265)
1Q2015 = 13.507
2Q2015 = 21.029 (1H2015 = 34.536 = 46% of FY2014 revenue)
 
Comments:
2) 2Q2015 revenue of 21.029 m was 15.1% higher than that of 2Q2014 (of 18.278 m) and 56% higher than that of 1Q2015 (of 13.507 m).
3) On half-yearly basis, 1H2015 revenue of 34.536 m was 11% higher than that of 1H2014 (of 31.079 m).
4) 1H2015 revenue was equivalent to 46% of FY2014 revenue. For FY2015 revenue to equal that of FY2014, 2H2015 revenue would have to equal 40.729 m (or 92% of 2H2014 revenue)  
 
NPAT
1Q2014 = 0.121 million
2Q2014 = 0.758 million (1H2014 = 0.879 m)
3Q2014 = 1.123 million  
4Q2014 = 2.052 million (2H2014 = 3.175 ; FY2014 = 4.054 m)
1Q2015 = 0.249 million
2Q2015 = 2.106 million (1H2015 = 2.335 m = 58% of  FY2014 NPAT)
 
Comments:
5) 2Q2015 NPAT of 2.106 m was 177% higher than that of 2Q2014 (of 0.758 m) and 745 % higher that that of 1Q2015 (of 0.249 m).
6) On half-yearly basis, 1H2015 NPAT of 2.335m was 165% higher than that of 1H2014 (of 0.879 m).
7) 1H2015 NPAT was equivalent to 58% of FY2014 NPAT. For FY2015 NPAT to equal that of FY2014, 2H2015 NPAT would have to equal 1.719 m (or 54% of 2H2014 NPAT) 
 
EPS
1Q2014 = 0.06 cent
2Q2014 = 0.34 cent  (1H2014 = 0.41 cent)
3Q2014 = 0.51 cent
4Q2014 = 0.93 cent  (2H2014 = 1.45 ; FY2014 =1.86 cents)
1Q2015 = 0.11 cent
2Q2015 = 0.96 cent  (1H2015 = 1.07 cents = 58% of FY2014)
 
Comments:
8) On half-yearly basis, 1H2015 EPS of 1.07 cent was 165% higher than that of 1H2014 (of 0.41 cent).
9) 1H2015 EPS was equivalent to 58% of FY2014 EPS. For FY2015 EPS to equal that of FY2014, 2H2015 EPS would have to equal 0.79 cent (or 54% of 2H2014 EPS)
 
GPM:
1Q2014 = 74.0%
2Q2014 = 69.8% (1H2014 = 71.5%)
3Q2014 = 75.5%
4Q2014 = 77.1% (FY2014 = 74.4%)
1Q2015 = 74.9%
2Q2015 = 75.8% (1H2015 = 75.4%)
 
Comments:
10) 1H2015 GPM 0f 75.4% was better than that of 1H2014 (71.5%) and FY2014 (74.4%).
 
NPM:
1Q2014 = 0.9%
2Q2014 = 4.1%   (1H2014 = 2.8%)
3Q2014 = 5.8%
4Q2014 = 8.2%   (FY2014 = 5.4%)
1Q2015 = 1.8%
2Q2015 = 10.0% (1H2015 = 6.8%)
 
Comments:
11) 1H2015 NPM 0f 6.8 % was better than that of 1H2014 (2.8%) and FY2014 (5.4%).
 
Cash & Cash Equivalent (SGD, million)
1H2015 = 34.543 (Debt = 1.5) => net cash per share = 15 cents.
 
NAV:
1H2015 = 26.29 cents
 
Interim Dividend:
1H2014 = SGD 0.3 cent per share
1H2015 = SGD 0.5 cent per share (67% increase)
 
Taiwan Revenue (SGD million)
1Q2014 =  2.418
2Q2014 =  4.157   (1H2014 =  6.575)
3Q2014 =  4.940
4Q2014 = 11.196  (2H2014 = 16.106)
1Q2015 =  4.465
2Q2015 = 10.244  (1H2015 = 14.709)
 
China Revenue (SGD million)
1Q2014 = 2.195
2Q2014 = 3.296   (1H2014 = 5.491)
3Q2014 = 3.117
4Q2014 = 4.372   (2H2014 =7.489)
1Q2015 = 3.088
2Q2015 = 5.366   (1H2015 = 8.454)
 
Comments:
12) In terms of revenue, NPAT, EPS, GPM and NPM, 2Q2015 was a better set of results compared to 2Q2014/1Q2015 (on quarterly basis) and 1H2015 was better than 1H2014 (on half-yearly basis).
13) The increase in revenue was primarily attributable to the consistent growth in Taiwan and China markets.
14) Improvement in NPM had contributed to higher NPAT/EPS as at 1H2015.
15) Interim DPS had been increased from 0.3 cent to 0.5 cent
16) Management is cautiously optimistic that the Group will perform positively for the remaining periods of FY2015, due to continual growth in key markets like Taiwan and China as well as the launch of new products in the next few quarters.
17) The Group’s application for direct selling license in China is in progress. 


18) PE Valuation:
Share price = 21.5 cents
EPS (FY2014) = 1.86 cent
PE (historical) = 21.5/1.86 = 11.6
Projected EPS (assuming FY2015 = 2 x 1H2015 = annualized 1H2015 earnings) = 2 x 1.07 cent = 2.14 cents
Forward PE (2 x 1H2015) = 21.5/2.14 = 10.0
=> Valuation as measured by PE is inexpensive.
 
19) Dividend yield:
Share price = 21.5 cents
DPS (FY2014) = 0.8 cent
=> Historical Dividend yield = 0.8 / 21.5 = 3.7 %
Projected DPS (assuming FY2015 = 2 x 1H2015 = annualized 1H2015 DPS) = 2 x 0.5 cent = 1.0 cent
=> Projected Forward Dividend yield = 1.0 /21.5 = 4.7%
=> Near term share price should be well supported by increase in DPS.
DPS/EPS payout ratio for FY2014 = 0.8/1.86 = 43%
DPS/EPS payout ratio for 1H2015 = 0.5/1.07 = 47%
 
With its strong balance sheet, honestly, I don’t see why BWL could not further increase its DPS payout to 80% of EPS.
 
1H2015 interim DPS has been raised from 0.3 cent (1H2014) to 0.5 cent. If 2H2015 DPS could be raised from 0.5 cent (2H2014) to 0.8 cent, that would raise the FY2015 DPS to 1.3 cent => projected Dividend yield = 1.3 / 21.5 = 6%
 
20) Growth Markets : FY2015 and beyond
Growth potential and momentum in the China and Taiwan markets remain strong. Taiwan had achieved 1H2015 revenue of SGD 14.709 m – against a FY2015 target of about SGD 32 m – revenue of SGD 17.3 m would need to be accomplished in 2H2015 to attain the yearly target - which seems achievable, IMO.
 
While application for a Direct Selling License in China is still in progress, revenue from China has been growing via the “Export” and “Manufacturing/Wholesale” channels.
 
It remains to be seen if the China online platform could be launched in 2H2015 and how successful would it be - but ultimately, the “accelerator” of growth still lies in the ability of BWL in obtaining a DS license in China as earlier as possible.    

While, a great deal of efforts have been put in on the "growth" markets. If at the same time, BWL could "revive" any of its "mature" markets like Malaysia, Indonesia, Thailand and the  Philippines - it would be an added bonus - ha-ha!
 
(vested) 
 

[greengiraffe]

Is BW - Singapore's Blackmores? Or a mini version?

Vitamins to China a trade bonanza

• REBECCA URBAN, SCOTT MURDOCH
  
• THE AUSTRALIAN
  
• AUGUST 29, 2015 12:00AM
  

1

Scott Murdoch
[Image: scott_murdoch.png]
China Correspondent
Beijing

[Image: 526952-13b41a98-4d74-11e5-b80b-e6817984bcd4.jpg]
Healthy business. Source: TheAustralian

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••

[b]Chinese expatriates and tourists are fuelling a boom in vitamins and health supplement sales as China’s soaring demand for safe Australian-made products is ­exploited by businesses competing in the $17 billion market.[/b]
Thousands of savvy entrepreneurs are also securing a slice of the action, snapping up box-loads of vitamins from local pharmacies, discount chemists and supermarkets and either shipping them to China or selling online.
Industry analysts estimate the trade is worth $230 million a year, and rising. The price of market leader Blackmores has burst through the $100-a-share mark and yesterday closed at almost $110 a share, higher than market darlings Commonwealth Bank and bio-pharamaceutical company CSL.
The company’s annual profit has jumped 83 per cent to a record $46.6m on the back of exports to Asia, where sales rose 26 per cent.
Demand for health supplements in Australian shops is such that it is not unusual to see customers queuing up to buy several large boxes filled with vitamins for shipment to China.
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Airport duty-free stores are dedicating significant shelf space to health-related products, targeting Chinese tourist arrivals.
Large bottles of Krill Oil, Colostrum pills and Deep Ocean Shark Squalene tablets are frequently displayed prominently alongside other high turnover product lines such as perfumes, cosmetics and alcohol.
Trade and Investment Minister Andrew Robb, who was in ­Beijing this week to promote the China free-trade deal, has ­embraced the emerging success of local companies, such as Blackmores, predicting a tenfold ­increase in its sales to Chinese consumers.
“Our free-trade agreements are helping to give us a comp­etitive advantage in markets like Korea, Japan and China,’’ the minister said. “In China for example, tariffs of up to 10 per cent will be eliminated across a range of pharmaceuticals, vitamins and health products once our FTA comes into force hopefully before the end of this year.
“Companies like Blackmores are extremely well placed to capitalise and are employing ­additional people in anticipation of continued growth in markets like China.’’
Blackmores, whose officials accompanied Mr Robb in Beijing, has formalised a strategic partnership with Chinese e-retailing giant JD.com.
What began with tourists buying Australian-made vitamins to send home to family and friends has taken on an entrepreneurial slant, with business-savvy expats and students buying products to sell online in China.
“It’s a very real dynamic,” said Patrick Davies, chief executive of healthcare business Ebos Group, which has a multi-billion-dollar pharmaceutical wholesale business and owns the franchise for the Chemmart retail chain
“If you hop on any e-commerce site in China, and type in Blackmores or Swisse, you’ll ­easily find them.”
For example, popular Chinese e-commerce site Taobao.com is stocking Blackmores natural ­vitamin E for 245 yuan ($53.45).
The Australian found the same 150-capsule pack in an Australian discount chain for $21.99. The same site is also selling Swisse ­calcium and vitamin D tablets for 150 yuan, more than double the discount price on a local online chemist site.
Joshua Ross, a Sydney-based investment analyst who was one of the first to notice the potential for Australian vitamin manufacturers, said getting products into China had become significantly easier thanks to the recent opening up of free-trade zones.
“It’s unleashed Chinese ­demand for Western supplements, and they are buying local brands because they don’t trust the local product,” he said.
He estimates the trade is worth up to $230 million a year.
As China’s population grows wealthier and increasingly health-conscious, Western-style health food supplements have joined meat and dairy products on the shopping lists of middle-class families. The value of vitamin sales on the mainland has more than doubled during the past decade to more than $17bn.
Demands for “safe’’ food from Australia and New Zealand has grown since the 2008 melamine scandal in China, during which several babies died after consuming infant formula tainted with the industrial chemical.
While Blackmores has been in Asia for more than 20 years, it only launched in China in 2012.
Chief executive Christine ­Holgate said the opening of the latest free-trade zone in China last November had created a substantial opportunity for the group, which was one of the few companies in the vitamin and health supplement space to secure a licence to trade directly into that zone.
It can now sell its own Blackmores-labelled and locally formulated products without having to obtain special regulatory ­approvals.
The emerging entrepreneurial activity by local Chinese expats and tourists had opened a whole new sales channel for the company, adding an estimated $65m to Asia-destined sales.
While the Chinese market is dominated by large American players such as Pfizer and Amway, Ms Holgate believes there are substantial opportunities for Australian manufacturers. Rival companies such as Swisse Wellness and Vitaco are also looking to China for growth.
“We have a fabulous reputation for being clean and green and for our government being supportive. There’s a very warm feeling towards Australians in China,” Ms Holgate said.
“Our business is about wellness and preventive health and part of the Chinese DNA is all about that too, having grown up with Chinese traditional medicine. So it’s just a really good fit.”
Chinese-Australian businessman Tony Lu spotted the opportunity to market Australian-made healthcare products to Chinese visitors when visitors to his gift shops around Melbourne began asking whether he sold vitamins and supplements.
He decided to develop his own range of products specifically ­targeted to the Chinese consumer.
Called Nurse 357, the brand has its own flagship store on the edge of Melbourne’s Chinatown, where the customers are almost exclusively Chinese tourists.
Top-selling products on the shelves include Kangaroo ­Essence and Pure Bioactive Squalene capsules, derived from shark liver oil and popular with Chinese people because of the association with Australia.
The average customer purchase is about $650, and sales of the three-year-old brand topped $1m last year.
Mr Lu said the brand traded heavily off being Australian-made and products were designed specifically for Chinese consumers and their healthcare needs.
“Chinese people are increasingly eating sugary and fatty foods, they spend time indoors, lots of time sitting down, and they are getting sicker with diseases like heart disease and diabetes,” Mr Lu said. “All our products are designed with that in mind.”
At a Beijing pharmacy yesterday, Lei Shaojun said he preferred to buy foreign-produced vitamins because of their better reputation.
“I usually take healthcare products from the US, I don’t ­really trust Chinese-made medi­cines because the pollution here is severe,” he said.
“I am not sure of the quality of the products and the technical and security standards of the vitamins are questionable. If there are good Australian vitamins, then I will give them a try.”
Australian Food and Grocery Council chief executive Gary Dawson said there had been a sharp rise in the number of mainland tourists and residents buying vitamins in Australia to take to China, as part of the growing trend of Chinese people becoming more health conscious.
In a Beijing pharmacy yesterday, Australian-made fish oil tablets were selling for 188 yuan, only marginally more expensive than Chinese-manufactured products.
“We have seen an increase,” Mr Dawson said in Beijing. “We think it’s part of the explosion that there has been in the health and wellness market in China, that is being led by the middle-class looking to take health supplements,” he said. “It’s a similar case for dairy and milk products and organic products as well.”
ADDITIONAL REPORTING: WANG YUANYAN

[kelvesy]

GG,

Thanks for the informative article shared.

Blackmores no doubt has a strong brand, do you think likewise for Best World's products? I find them quite normal only.

[greengiraffe]

GG,

Thanks for the informative article shared.

Blackmores no doubt has a strong brand, do you think likewise for Best World's products? I find them quite normal only.

BW cannot lah... To me its a falling darling after 2G disappeared from the register post GFC.

As for Blackmores, I seriously missed out on the stock after discovered a slightly earlier article on the impact of kiasi Chinese on Blackmores...

[Boon]

China's Boom in Old-Fashioned Business
5 JUN 8, 2015 6:00 
By Adam Minter

Last weekend, 90 buses, filled with 4,500 Chinese tourists, roamed the Netherlands courtesy of Perfect (China) Co. Ltd., a direct sales firm specializing in household and beauty products. It was an ostentatious trip, but nothing compared to the early May tour of France that Tiens, another Chinese direct sales firm specializing in health and beauty sponsored for 6,400 of its representatives. And that was smaller still than the 110 flights chartered in mid-May to take 12,700 Chinese tourists to Thailand, all of whom -- that’s right -- work for another Chinese direct sales company, Infinitus, specializing in health and beauty products.

Welcome to China’s booming direct sales sector, where revenues have gone from zero to $18 billion in the past decade. It might seem surprising that such an old-fashioned business model -- which revolves around people hawking wares to people they already know -- is succeeding despite facing competition from the world's largest e-commerce sector. But there's a reason direct sales have found fertile ground in China: Trust is still a relatively scarce commodity in the country's business world.

The modern direct sales industry began in the West in the late 19thcentury, when companies began handing out commissions to people who agreed to work their personal social networks for sales. Nearly a century passed before Avon (the direct sales company famous for its Avon ladies) tried expanding to China in 1990. Amway followed in 1995.

By 1998, Amway was bringing in revenues of $200 million per year. The direct sales model proved ideal for China's many would-be entrepreneurs who were eager to get into business, but who lacked the capital (or political connections) to start something on their own. The industry also happened to fit seamlessly with China’s business culture, which places a premium on working with people whom you already trust, such as family members, classmates, and people from the same village.

Why is personal trust at such a premium in China? Part of the reason is that consumer rights in China, even when they have a basis in law, are weak, since the country's court system is mostly inaccessible for people of modest means. As a result, some manufacturers cut corners because they know Chinese consumers have few ways to hold them accountable for selling shoddy products. The public has learned they have good reason to be wary of counterfeits and contamination when shopping at their local markets.

Many consumers find direct sales transactions more reassuring -- especially for health and beauty products, like diet supplements -- because they typically come with the endorsement of friends, relatives or someone else they know. Nonetheless, direct sales companies initially faced some resistance from the Chinese government. The country's growing mid-1990s direct sales networks, supported by foreign companies, were viewed with official suspicionby the Communist Party, which has a history of treating organized social networks -- whether for the purpose of participating in politics or selling makeup -- as potential rivals. In 1998 the government banned direct sales businesses outright.
In truth, the sector could have used more government oversight in its earliest years. Some unscrupulous entrepreneurs learned to leverage the trusting relationships that are the foundation of any successful direct sales networks to prop up scams. There have been thousands of cases in China where salespeople were persuaded to invest their savings in worthless inventory (including a notorious ant breeding pyramid scheme that cost investors $385 million, and the organizer his life).

In 2005, under heavy lobbying pressure from U.S. and Chinese direct selling firms, the government legalized the business under a new law that ensured that salespeople don’t have to pre-purchase inventory, among other provisions designed to prevent Tupperware parties from becoming criminal enterprises. Today, China is Amway’s leading market (with more than $4 billion in annual sales), and four Chinese companies are ranked in the top 20 direct sales companies in the world. In the next few years China will almost certainly surpass the U.S. to become the world’s biggest direct sales market.

That's not to suggest that China's direct sales successes should be treated as the foundation for the country's economy. China’s world-beating e-commerce marketplace, which racked up $440 billion in 2014 sales, has a much more promising future. But it's worth remembering that there are many Chinese consumers who prefer to buy from somebody they know, even if they carry a smartphone in their pockets. At the very least, it's a reminder that China's future economy won't easily leave its past behind. 

This column does not necessarily reflect the opinion of Bloomberg View's editorial board or Bloomberg LP, its owners and investors.

http://www.bloombergview.com/articles/20...d-business
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[Boon]

BWL Taiwan did TWD530million for FY14. (about SGD22.5M). Taking out Q1, 2 & 3, Q4 revenue approaches SGD10.5m for Taiwan? Next year target is TWD750M (SGD32M).

FY13 Target was TWD300M (met), FY14 Target was TWD500M (met), FY15 Target is TWD750M (achievable?)

https://www.facebook.com/pages/BWL-Taiwa...81?fref=nf

Thanks “namralk” for the more up to date link on the BWL Taiwanese market.

I am certainly impressed with the 4Q2014 and FY2014 sales figures of the Taiwanese market – which would contribute positively to Best World’s overall FY2014 results, to be released next month.

The FY2015 target of TWD 750 million, which is a 50% increment to the FY2014 target of TWD 500 million, certainly looks to be a tall order – but I would not be surprised at all if they could meet the target again. Honestly, for FY2015, I would be equally pleased if they could just maintain the FY2014 sales figure.

(vested)

The growth momentum of the Taiwanese market for BWL seems to be going strong.
 
Revenue achieved in the first eight months of FY2015 for BWL Taiwan was at TWD 540 million (about SGD 23 million) - this had surpassed that of the entire year for FY2014 (of TWD 530 million).    
 
Revenue achieved in the first two months (July & August) of 3Q2015 could be implied to be around SGD 8.291 million (= 23.000 – 1H2015 revenue of 14.709).
 
Taiwan Revenue (SGD million)
1Q2014 =  2.418
2Q2014 =  4.157   
3Q2014 =  4.940
4Q2014 = 11.196  (FY2014 = 22.711)
1Q2015 =  4.465
2Q2015 = 10.244  (1H2015 = 14.709)
3Q2015 =  8.291 + September revenue
4Q2015 = ?????
 
FY2015 revenue target for the Taiwanese market had been set at TWD 750 million (or about SGD 32 million). To achieve this, revenue for the remaining four months of FY2015 (September + 4Q2015) would have to come in at around SGD 9 million – which seems achievable.
 
In view of the strong momentum, the management seems to have revised a new target of TWD 1,000 million (about SGD 41 million) for FY2015…………"the order has become taller"..............…..ha-ha !

(vested)
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親愛的全美世界會員們大家好：
秋天是收穫的季節，金黃的稻穗，艷紅的果實，點綴這一切的美好。
今年，到八月為止，我們的業績已達到5.4億，超過了去年一整年。
感恩您的努力，更敬佩您帶領團隊勇於突破，敢於超越的堅定意志。
在中秋佳節的前夕，獻上集團創辦人及台灣分公司所有同仁的祝福，祝您闔家安康，歡慶團圓，也預祝今年力拼10億，搶進15大成功。
全美世界國際集團台灣分公司
總經理 葉國淡 敬賀
 
https://www.facebook.com/pages/BWL-Taiwa...81?sk=wall
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[Boon]

Growth momentum is still going strong in Taiwan................

Sales from "BWL Taiwan 9th Anniversary activities" launched since 6 October 2015 has reached TWD 200 million

With the TWD 540 million sales achieved in the first 8 months of 2015, the original 2015 revenue target of TWD 750 million should have been surpassed.

Would the revised new target of TWD 1,000 million be achieved for FY2015 ? Only time will tell...........................should be close I reckon.

_____________________________________________________________________________________________________________________________________

BWL Taiwan added 53 new photos to the album: 20151006高階領導擴大會議.
October 8 at 2:21am ·
全美世界9週年慶祝活動正式起跑嚕～
感謝近200位全美高階領導一同熱情參與『2015第四季高階領導擴大會議』與『台中服務中心全新改裝啟用儀式』，
榮譽晉升、瘋狂下單、吃開喝嗨閃光燈不斷….
10/06當天開紅盤，收單業績直飆800萬…
因為你們的投入，創造了發光發熱的全美世界…
感謝你們的參與，豐富了溫暖四溢的全美文化…
嶄新出發衝衝衝～
預祝全美世界今年力拼10億，搶進15大成功！！


https://www.facebook.com/BWL-Taiwan-151508721599781/
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