Best World

[Boon]

China: Golden Opportunity for Multi-Level Marketing (MLM)
By Mark Schaub 
July 18, 2016

In a short time, China has moved from being the world’s workshop to its most lucrative consumer market. China is a market with 1.4 billion consumers and in 2013, Chinese consumers spent nearly half of their annual salary on consumer products. These consumers are increasingly spending big on health supplements, cosmetics, weight loss products, vitamins and other recurring, affordable luxury type products for better quality of life.

China does not only have the world’s biggest consumer market but this market is expected grow by USD 2.3 trillion from 2015 to 2020 – Over the course of five years this growth will roughly equal a market 1.3 times the size of Germany or the UK.

Even better news for MLM companies is that retail growth rates for their types of product are exploding – health supplements have grown by 25.2% in the years up to 2014, and cosmetics currently have a compound annual growth rate of 12%, weight loss products 5%, and vitamins 9.7%.

However, China is not just a massive market for MLM. In many ways, Chinese society makes for fertile ground for MLM with its close-knit communities of friends and family that dominate social interactions and life. As such, traditional advertising is much less effective in China than in the West as word of mouth and similar advertising through channels such as “friends’ circles” and popular social networking applications like Wechat are far more effective. This culture creates the perfect environment for MLM and network marketing which is primarily based on affiliates having a close network of friends and family.

Direct-selling in China is BIG and is continuing to grow at a rate 3 times the level of growth in the US, not accounting for the recent liberalization of direct-selling for international companies which will lead to even more accelerated growth. Hu Yuanjiang, secretary-general of the Direct Selling Expert Committee of the China Marketing Association has indicated that growth in the industry is predicted to keep increasing to hit RMB 1 trillion (USD165 billion) in less than 10 years.

International companies have a great opportunity to take a major slice of this market due to their cutting edge products, management experience, established brands and the trust that Chinese consumers have in direct sales products such as cosmetics, nutritional and supplement goods.

The question is how to take advantage of this opportunity......................................................

http://homebusinessmag.com/blog/direct-s...eting-mlm/
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[Boon]

BWI had achieved annual revenue of over SGD 100m twice in FY2007 and FY2015.

It is highly likely that revenue would surpass the USD 100 m mark (if not the SGD 200 m mark) for the first time in FY2016.

Could it become a USD billion (or SGD billion) revenue company one day? Only time will tell...........................................
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Growth Comes in All Shapes and Sizes for the Global 100
by Andrea Tortora
May 31, 2016

Over the past seven years, the Direct Selling News Global 100 has become the definitive ranking of the world’s largest companies distributing their products and services through a network of independent direct selling entrepreneurs. But the list is much more than a recitation of company names and revenue numbers.

A deeper dive into the list unveils a dynamic channel. Direct selling company home offices, in partnership with their salesforces, are generating economic opportunities that have lasting social impact. They are accomplishing this in virtually every consumer product segment and in nearly every market around the world.

One of the insights gained from the 2016 Global 100 list is that growth within direct selling today can be as varied as the companies themselves. The list points out some common characteristics of growing companies: a focus on products, customers, serving their salesforce and creating a culture that reinforces a sense of family. It also reveals the power direct selling has to help a company grow rapidly, with more companies surpassing the $1 billion revenue mark than ever before. And, while direct selling continues to expand internationally, this year’s list also shows that there are plenty of growth opportunities to be had in the U.S..................................................

[Image: 0616_roadtoabillion.jpg]


Expansion of the Billion Dollar Club

The ability to harness technology and data and execute on the insights those tools provide means companies can top revenue milestones at lightning speed. For some businesses, this puts the elusive $1 billion mark within reach in a matter years instead of decades. “The rate of speed at which firms are growing and hitting $1 billion is much faster,” says Bob Bass, a senior analyst at Amway’s world headquarters in Ada, Michigan. “Social media and digital commerce are combined to create an opportunity to share and tell the story while still leveraging friends and one’s network. We are just more connected, and we can see the opportunities available on a very quick time frame.”...............................

The Chinese Direct Selling Revolution

For the first time, China is likely to eclipse the United States as the world’s largest direct selling market in 2016 or 2017. As the country hurtles toward the No. 1 slot, many of direct selling’s largest companies are paying close attention to the Chinese economy and the regulatory environment within its borders.

China’s potential is huge.................................

http://directsellingnews.com/index.php/v...9DB7FdYl-U
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[Boon]

"But strangely, the company is refusing to let consumers buy online directly and insists that web orders must be routed through specific representatives, which adds to its products’ cost."

Online platform or E-commerce should be exploited to the extent of enabling DS companies and their distributors to be more efficient.

Strangely it may sounds to some, but this is consistent with the policy of "never get around your distributors and never compete with your distributors". 

Wondering if there is any other DS companies that use online platform to compete against their own distributors?
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[Image: logo.svg]
Direct selling in China
Rebirth of a sales firm
Lessons from Amway’s turnaround
Aug 27th 2016 , SHANGHAI 

“I AMWAY you this song!” So declared Tan Weiwei, a Chinese pop artist, during a performance in Shanghai on August 14th. Hers was the closing act in a gala celebration thrown by America’s Amway, the world’s largest direct-sales company, for its top sales representatives in China. When she used that odd expression, which in China is a way to say “strongly recommend”, the crowd of 11,000 diehards gathered in the stadium and another 1.5m Amway staff, distributors and customers watching via webcast went wild.

That Amway’s Mandarin name (“An Li”) has become a meme shows the strength of its comeback in China. It entered two decades ago, using its model of multi-level marketing (MLM), which rewards salesmen not only for selling products but also for sales made by people they recruit. After a run of pyramid scams—unrelated to Amway—led to a public backlash, in 1998 the Chinese government banned all direct sellers and its sales dwindled to nearly nothing. Now, however, the mainland is Amway’s biggest market. Its annual sales there, of products such as toothpaste and make-up, have exceeded $4 billion in recent years. How did it do it?

The firm’s leadership emphasises the virtues of patience and investment. Amway had floated bits of its Asian operations outside China, but disliked investors’ short-term focus. It took the divisions private again, which it says shows its long-term approach. Its philosophy helped it through the bleak years on the mainland.

Just as important was Amway’s ability to sell itself to officialdom. The firm’s senior managers got to know regulators and informed them about the differences between pyramid schemes and established direct sellers. It managed its after-sales process well: even after the t lifted the ban on direct selling ten years ago after China’s accession to the WTO, Amway sponsored a fellowship that sent rising stars of the Communist Party to Harvard’s Kennedy School of Government, with a handy stopover at Amway’s headquarters in Ada, Michigan.

Amway also had to be willing to change its MLM methods. China’s law permitted direct selling but forbade most forms of multi-level marketing. Firms had to have a physical presence, the government decreed. Amway’s China division devised clever, legal means to reward networkers who recruit other salespeople. It had to revise its sales model five times. It also opened branded outlets, Amway’s first.

So far it has been worth it. Amway is facing greater competition from local firms, but it is still raking in cash as the biggest direct seller in a market worth 112 billion yuan ($16.8 billion). Yet the firm’s choice of keynote speaker at its recent gala in Shanghai, Sir Tim Berners-Lee, inventor of the web, is a reminder of a different threat. China’s rapid embrace of e-commerce has already caught some Western giants, including Unilever and Nestlé, off-guard. Amway is menaced, too.

“E-commerce is hurting us very much, as it is changing the mentality of how people shop,” says Audie Wong, president of Amway China. Its digital efforts are getting results; from nothing a few years ago, e-commerce now makes up 45% of sales in China. But strangely, the company is refusing to let consumers buy online directly and insists that web orders must be routed through specific representatives, which adds to its products’ cost. It seems tied to its army of glad-handers. If it cannot go truly digital, its China business might eventually become an example of how not to do things.

http://www.economist.com/news/business/2...sales-firm
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[CityFarmer]

"But strangely, the company is refusing to let consumers buy online directly and insists that web orders must be routed through specific representatives, which adds to its products’ cost."

Online platform or E-commerce should be exploited to the extent of enabling DS companies and their distributors to be more efficient.

Strangely it may sounds to some, but this is consistent with the policy of "never get around your distributors and never compete with your distributors". 

Wondering if there is any other DS companies that use online platform to compete against their own distributors?

E-commerce for Direct Seller, comes with a risk. A risk of losing the high touch/personalized service of DS model between distributors to end-users. The largest selling cost, is the commission. The e-commerce cost reduction is marginal.

E-commerce should be the facility between distributors to company, more of B2B, rather than B2C model, IMO. Otherwise, the company might become just another e-commerce website, rather than a DS company.

It might be the reason, that no obvious selling cost reduction seen, in most DS companies, after years of e-commerce deployment.

(not vested)

[brattzz]

also meant that the products needs the sale person and their %% commission to be sold at the "right" price!

standardized items sold at mass market prices does not work here...

[Boon]

[Image: 2jbuzcg.jpg]

The Taiwan revenue trend has been such that:
 
4Q2014 > 3Q2014 > 2Q2014 > 1Q2014 
                                   
4Q2015 > 3Q2015 > 2Q2015 > 1Q2015 
                                   
2Q2016  > 1Q2016             
 
So far so good, but would this trend continue ?
                       
Question# 1:  Is it realistic to expect 3Q2016 revenue > 2Q2016 revenue (of SGD 35.056 m)?     
                                   
Question# 2: If 3Q2016 revenue is > 2Q2016 revenue, is it realistic to expect 4Q2016 revenue > 3Q2016 revenue ?  
 
Bear in mind that the original FY2016 Taiwan revenue target was set at TWD 1,800 m (~SGD 75m).
 
1H2016 Taiwan revenue came in at SGD 55.277 m (~ TWD 1,300 m).
 
FY2016 revenue target has now been revised to TWD 3,000 m, meaning 2H2016 target is set at about TWD 1,700 m ( ~ SGD 70.8 m)
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[Boon]

Best World seems to be on its second wind, but it is not clear how long this can last. This may not be a concern to short-term investors looking to trade on news, but the long-term investor would do well to be cautious. Taiwan is the current star market for Best World, but if Taiwan peaks soon and China doesn't take off, it's game over. It is true that the Chinese market is enormous. But it is also intensely competitive for both the principals and their distributors. It is not clear whether Best World will be able to maintain prices or commissions in China.

2. "CF wrote (not vested, why? price not right  [Image: tongue.gif] )"
Personally, I think that IF BWL can execute its strategies and manage to grow its China markets for next few years, then the current price is not expensive.

Interesting contrast : "Short-term focus" vs "long-term approach"
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[Boon]

A step closer in establishing BWI's in-house capability in the manufacturing of its own brand of skin care products.

COMPLETION OF THE ACQUISITION OF FACTORY FACILITY 
http://bestworld.listedcompany.com/newsr...BNYQ.1.pdf
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[Boon]

More awards.
 
Membership is still growing in Taiwan ( > 4,000 new members added in August, which is pretty good ).
 
https://www.facebook.com/bwlbvyc/posts/971712639604448
 
全美世界得獎不斷😱
在2016第一屆亞太直銷高峰會中，
又得到了兩個獎項，🎊
亞太優質名牌產品獎
🎉亞太風雲品牌直銷企業獎
8月會加入會員超過4,000人，
就有超過70%是35歲以下，
正式邁入年輕化，這樣子公司，值得您投入
歡迎更多有夢想的年輕人!🤗
跨時代創業家&夢想從改變開始
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[Boon]

PROPOSED BONUS ISSUE - LISTING AND QUATATION OF BONUS SHARES

http://bestworld.listedcompany.com/newsr...ADO8.1.pdf
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