Best World

[Boon]

The discussions on BWI China model are getting very complicated.

My GUESS is BWI is selling DR Secret products via :
Distributor*(company level) -> Distributor*(company level) .... -> Consumer(Individual) using 663 "concept" .

*salons, shops etc

It is not really considered DS because the tiers are companies(instead of individuals), e.g. Watsons/Guardian chains or Gong-Cha franchises, and these BWI distributors/companies are all over China. It is not commissions at individual level but "sales margins"/"profit bonuses" at company level, incurring company income tax etc. So, the top most level is DMJ(or Chao Yue Ti Xi i think); the PDs are owners whose companies are directly below her company, in other words, all of them have to be business owners. In addition, DMJ's company(salon/shop) may also sell to end users directly(but no tier commissions). All these made her the "top seller".

So, when the DS licence comes for both the various DR products + various China cities, then BWI will convert all the existing distributors/companies as individual members(persons) into the "normal" DS.

Now, the problem is this is treading the fine line of DS/MLM. While BWI wants to recognize its China distributors' achievements, it may warrant unwanted regulator's attention. So it is better to keep a low profile i.e. removing all the videos from the public domain.  

BTW, my Chinese is quite rusty so pardon me if the above is already invalidated by the Chinese passages in the earlier threads.

Of course, all these are just dreamybear's theory, pls DOD.

I believe there is a certain degree of non official practice, in business, sometime it is difficult to avoid. The company if choose to close both eyes, it is dangerous. Example OKP, already have prior warning, yet one of their structure collapsed. For BWI, it seems like after several shareholders questioned the IR, the company removed the videos to avoid further speculations. The truth whether the non official practice is conducted by individual agt/disty or encouraged by the company to do so, to me, is unknown. However, I think the company might have some knowledge on it. From the IR response, it appears that BWI is practicing what the competitors had done and still doing, and they ASSUMED it is safe.

Anyway, for those who has already cash out, it is money in the pocket--safe! No one know what is going to happen tomorrow. Besides company risk in BWI, there is still ongoing market risk that one has to bear all the time. Also, there is always opportunities in the market, hence end of the day, who knows who is the greatest winner.

For those who are still invested in BWI, be rational and not bias. Sometime I also tried to justify a risky/bad investment. Nowadays I tried to be more systematic with my strategy, still learning.

Please do your due diligence, above is just my view.

君子爱财，取之有道
 
Officially, they implied they could close both eyes on their export business.
 
Unofficially, being the possible mastermind behind it, both their eyes could be wide opened even during sleep.
 
It is illegal but many think they could get around the rules. 道高一尺，魔高一丈.
 
Difficult for many to avoid the temptation of reaping exceptional gains quickly – driven by greed.
 
Bottom line is does BWI have a choice?
 
If it is illegal – the right choice is obvious - simply don’t do it.
 
Is it a difficult choice?
 
For a company with the highest ethical standards – it should be a pretty straight- forward decision.
 
Does BWI has the freedom to choose its own ethical values ?
 
But looks what they have chosen.
 
The risk- reward dynamic of this stock has changed.

The high ethical standard of the company which it preaches is under threat.
 
As an investor, it is your right to choose to even close your third eye, if you do happen to have one extra - the choice is yours.
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[Boon]

This is an example of misuse and abuse by distributors in China:
 
全美世界皙之密 投资 1-5万元
15.12.13
·      加盟费：18300元
 
http://zaozhuang.58.com/shenghuojm/24320...402x.shtml
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[Boon]

Another case of misuse and abuse with Taiwanese connection.
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全美世界是直销公司，我们是直销人。直销人摆平“拒绝”的五条定律

2017-04-04 06:36

http://blog.sina.cn/dpool/blog/s/blog_69...fer=wbcard
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[Boon]

BoonSo some one has done some on ground check on BWL sales convention in WHERE?
1)  BWL holds most of its convention there.
2)  Company name, brand and systems are the subjects of the event.
3)  So, who is the actual organizer of this event? 
4)  Not BWI & companies of course as “All DR’s Secret service outlets/workshops in China are operationally independent and do not have any contractual agreement with Best World and any of its subsidiaries.”- according to reply from IR to moneyspinner and JanQuin.
5)  Must be BWI’s China Agents/Distributor, right? Who else could it be?
6)  Has approval or consent being granted by BWI for such an event?
7)  If yes. there must be a written consent – which is a form of agreement - but there is no agreement according to 3) above.
8)  If NO, the management is putting company’s reputation, systems, brand reputation at great risks of being misuse and abuse.
9)   Is his how BWI manage its “Export business” in China? 
10) What is the point of existing distributors recruiting more new distributors ? 
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Its interesting that the analyst Jonathon went down to the convention and had a look at everything that's going on and raised 0 concerns on regulations. His biggest concern is "weaker than expected sales in Taiwan or China" which he has addressed in his report as not really a worry.

Doesn't one wonder why in Changsha, which is not a licensed DS region and Dr Secret which is not a licensed product is being distributed by so many people there? What makes Jonathan so confident that there is no wrongdoing on the ground? Maybe someone can email him to ask him? jonathanwp.seow@cimb.com

I guess as long as they get the Changsha + Dr Secret approval as soon as possible, any prior business practices can be glossed over like how the convention videos are removed and there is not really much ground for debate.


The share price reaction today is definitely shouting at Boon and me saying "You are wrong in your questions!". And perhaps the stock might go up by another ten fold in the next 5 years. Its a risk one has to take i suppose with a juicy reward painted by analysts.

Please do your own due diligence. (Btw, how do you adad a signature?! I am tired of typing this with every post. )

Convention videos are time bomb that could explode anytime or may not explode at all - depending on who has got hold of them and intend to do with them

Play by the rules NOW - it is not worth the risks, I reckon.
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"Strong company culture. All the distributors we interacted with spoke very
highly of Best World and its corporate culture. This alleviated some of our
concerns about top-ranked distributors leaving Best World to join a
competitor. Distributors also appeared to work closely with one another,
forming small communities and circles to organise activities/sharing sessions
to recruit new sales/distributors. "

Question:
Do these distributors have sufficient exposure to “real” BWL company culture to speak so highly about it - since all downstream activities in China seem to be operated independently by the distributors themselves?

What aspects of the company culture they spoke so highly of ? 

Multi-Level-Commission or freedom to do as they like ?

If current practice is multi-level-commission - what would motivate these top-ranked distributors to remain, when single-level-commission system is being implemented?

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[Boon]

http://www.ibwlgroup.com/plan/

See if you can spot what is "wrong" with this article ?
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[Boon]

https://hk.bwlgroup.com/pdf/RhapWinter06_eng.pdf

Page 7 & 8

It's all about uplines/downlines.

Would the systems work under the single-level commission model? Not IMO.

Is the practice of 663 in China legal? Not IMO, as developing downlines are considered illegal in China.


If the systems don't work under a single-level-commission settings, how did DMJ managed to develop so many downlines using the systems?

Dora’s Realm of Thoughts  
663 Systems

Have you considered the questions below? 
Many people have joined the direct selling business, but few have achieved success. This is because many people enter the business with big dreams but lack the ability to systematically execute their plans. 
There are many excellent leaders, but because they are unable to duplicate similarly strong downlines, they fall into a “bottle-neck” situation. 
Uplines and downlines do not see eye to eye, unhappiness festers, sometimes leading to head-on confrontations. This negative influence inevitably affects morale and productivity. 
 

These situations arise because certain distributorship networks lack systematic and
standardized processes. In other words, a System’s complete execution flow plays a critical
role in determining how a distributorship network develops and grows.

Direct selling can bring about multiple growths. The secret lies in the ability of the direct
selling System to duplicate leaders effectively and nurturing downlines to become
independent leaders. The level of success at duplicating leaders depends very much on the
execution of the System.


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[ftaalee]

Every risk and threat raised is real and probable but there is no point to keep dwelling on just the negative factors because every company in this business is doing the same thing and bearing the same risk. For the kind of business they are in, it is not a stock meant for the faint hearted – just look at the recent 20% price correction. In the future there will be even more heart stopping moments with news of product controversy or breaches of rules. That notwithstanding, is it still a worthy company in ascendant? With their experience and market knowledge gained in Taiwan one has to make a judgement whether in China they can navigate the choppy waters and make inroads in a potentially enormous but challenging and perilous environment.
Have been a stake holder since 2005 and I keep my faith.

[Millionfaith]

Just some possible risks pulling down 2Q result:

a. Taiwan numbers continue to decline due to high profile negative publicity of 2 other direct selling companies reported in late 4Q2016.

b. Over stocked in 4Q2016, due to promotional activities in Taiwan

c. Over optimism caused by China craze phenomenon led to over stock for China export agents on DRs Secret product. Export sales for DRs Secret was 20.7 million in 1Q2017 (up 110% yoy). According to BW, this larger shipment is to build up sufficient inventory for current (1Q 2017) and FOLLOWING QUARTER (i.e. 2Q 2017 and beyond)

The list is not exhaustive. I do not want to go into positive notes despite there are (as reported by CIMB), as I am aware of the risk going forward for BW. I do not want to mislead others. I planned for the worst scenario on her next result (7th Aug) but hope for the best. It is up to individuals to do your due diligence. Everyone risk aptitude is different.

Above is just my opinion. I do not consider myself as skilled investor so take it with a pinch of salt.

All the best!

Vested

[Boon]

Every risk and threat raised is real and probable but there is no point to keep dwelling on just the negative factors because every company in this business is doing the same thing and bearing the same risk. For the kind of business they are in, it is not a stock meant for the faint hearted – just look at the recent 20% price correction. In the future there will be even more heart stopping moments with news of product controversy or breaches of rules. That notwithstanding, is it still a worthy company in ascendant? With their experience and market knowledge gained in Taiwan one has to make a judgement whether in China they can navigate the choppy waters and make inroads in a potentially enormous but challenging and perilous environment.
Have been a stake holder since 2005 and I keep my faith.

Every company in this business is doing the same thing  - therefore BWI has to do it even though it is unlawful - is this what you are implying?

[ftaalee]

After refinancing my loan, the back sent me a letter promising reward for client reference. Is this unlawful?