Best World

[moneyspinner]

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

As investors of BWI or for that matter any other DS company operating in China this is a risk which one has to recognise as otherwise the company just can't compete with their peers doing similar businesses in China. Regulatory risk is always the greatest risk facing DS companies operating anywhere in the world!

Definition: Regulatory risk is the risk of a change in regulations and law that might affect an industry or a business. Such changes in regulations can make significant changes in the framework of an industry, changes in cost-structure, etc

http://economictimes.indiatimes.com/defi...atory-risk
 
Rules across different country could be different (multi-level-compensation is legal in Taiwan but not in China).
 
Rules within a country is the same.
 
The regulatory rules in China are the same for ALL DS players in China.
 
If there is a change of rules in one country, it affects all players in that country – It is an even playing field.
 
Rules are set or change by regulators over which businesses have no control.
 
Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
Some businesses resort to “cheating” in order to “survive”.
Some do it in order to make decent profit.
Some do it in order to make “LARGER profit”.
Some do it in order to make “ABNORMAL profit”
 
Where do you think BWI fits?
 
Does BWI have to do it?
 
Does BWI have a choice?
 
Your unfair advantage. (Or, cheating legally.)
by Kristin Swartzlander | Jul 10, 2014 | 
http://www.dirtymouthcommunications.com/...g-legally/
____________________________________________________________________________________________
 
Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
“Concealing” or “disguising” such “illegal activities from investors/shareholders is called “misleading” – another form of “cheating”  - the Company is subject itself to being sued by its shareholders.

Is it worth doing it?
 

Aiyoh! If one has a vested interest in the company, would you sue the company when its intention is to try to beat the competition especially when the ground is uneven and everybody else is doing it?  By so doing you are actually shooting your self in the foot!

[Boon]

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

As investors of BWI or for that matter any other DS company operating in China this is a risk which one has to recognise as otherwise the company just can't compete with their peers doing similar businesses in China. Regulatory risk is always the greatest risk facing DS companies operating anywhere in the world!

Definition: Regulatory risk is the risk of a change in regulations and law that might affect an industry or a business. Such changes in regulations can make significant changes in the framework of an industry, changes in cost-structure, etc

http://economictimes.indiatimes.com/defi...atory-risk
 
Rules across different country could be different (multi-level-compensation is legal in Taiwan but not in China).
 
Rules within a country is the same.
 
The regulatory rules in China are the same for ALL DS players in China.
 
If there is a change of rules in one country, it affects all players in that country – It is an even playing field.
 
Rules are set or change by regulators over which businesses have no control.
 
Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
Some businesses resort to “cheating” in order to “survive”.
Some do it in order to make decent profit.
Some do it in order to make “LARGER profit”.
Some do it in order to make “ABNORMAL profit”
 
Where do you think BWI fits?
 
Does BWI have to do it?
 
Does BWI have a choice?
 
Your unfair advantage. (Or, cheating legally.)
by Kristin Swartzlander | Jul 10, 2014 | 
http://www.dirtymouthcommunications.com/...g-legally/
____________________________________________________________________________________________
 
Gaining an unfair advantage by intentionally breaking the rules is called cheating………………
 
“Concealing” or “disguising” such “illegal activities from investors/shareholders is called “misleading” – another form of “cheating”  - the Company is subject itself to being sued by its shareholders.

Is it worth doing it?
 

Aiyoh! If one has a vested interest in the company, would you sue the company when its intention is to try to beat the competition especially when the ground is uneven and everybody else is doing it?  By so doing you are actually shooting your self in the foot!

Are you saying those investors who sued Nu Skin have no vested interest in the Company.

How do you substantiate your statement that everybody is doing it? Is Amyway China doing it?

The consequences of "cheating" could be many times worst than "shooting ones' own foot" - it could amount to killing the goose that lays the golden eggs.

[Boon]

Could someone please enlighten me on why is the exports model in China is experiencing such explosive growth? "Management foresee further increase in repeat consumption amongst existing users as well as the number of new users for DR’s Secret line of skincare solutions". But isn't the direct selling license only for 6 consumables health products from the China company that they took over? What's driving growth in the export model? Are distributors stockpiling to convert into the direct selling model later?

Hi Squirrel,

Here are my views.

Under the export model, BWI exports its BWL line of products to its China agent.
 
The China agent, sells the products to its clientele - traditional business owners of hair salons/beauty salons/nail salons/spas, across China.
 
The agent’s clientele sell the products to their customers through their hair salon chains, beaty salon chains, nail salon chains and spas
 
Development of clientele for its China agent is driven by BWI’s market support staff, product trainers together with a few selected leaders of Taiwan. Their involvement is mainly in terms of product trainings, sales techniques training and product presentation etc, on behalf of the agent.
 
Upon obtaining full DS operational approval in their respective city/area, all customers of the agent’s clientele  in that city/area, will be converted into their downlines – a condition which the agent’s clientele have to agree before being appointed
 
Why the exports model in China is experiencing such explosive growth?
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Are distributors stockpiling to convert into the direct selling model later?
 
So far, the DS license granted is only for the city of Hangzhou – and only for 6 Aurigen line of health products.
 
Once the BWL line of products has been approved and admitted into the DS permissible products list, Hangzhou would be ready to be converted into the DS mode for BWL line of products.
 
If they are stockpiling, it would be confined to “distributors” in Hangzhou only - provided there are potential profits to be made – this would be dependent on the “pricing” of the products to be set by BWI under the DS mode.
 
Hence, if the are, the scale and their impacts would not be significant, IMO.
_____________________________________________________________________________________________________________________

Why the exports model in China is experiencing such explosive growth?

Less than 3 months ago we were still discussing on the above question – a very good question posted by squirrel but a difficult one to answer.
 
I wasn’t sure then but did try to GUESS anyway–hence “POSSIBLE” is being used
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Stockpiling by China distributors was cited as one other possible reason- but illegal business practices never crosses our mind at all (not for me at least) at that stage.
 
Compliant with China rules by BWI was an HUGE assumption (implicit) which I took for granted in all my prior analysis.
 
Unfortunately, that didn’t seem to be the case as I have discovered later…………
 
If a KEY assumptions of one’s investment thesis/analysis in a company/stock is no longer valid, flawed or under threat  - then one has to relook at the whole situation to fully understand its potential implications – and if necessary adjust one’s investment accordingly.
 
The consequences of getting this assumption WRONG could potentially be devastating and is not inconsequential – it could have wide and far-reaching implications.
 
An analysis is only as good as its underlying assumptions.
 
Some views remain unchanged as the underlying assumptions remain unchanged.
 
Some views have to change as a consequence of change in the underlying assumptions.
 
After all investing is a dynamic process…………………….
  
So,
What has not changed?
What has changed?
Why it has changed?
How it has changed?
360 degree or 180 degree or 90 degree or zero degree change?
 
One has to make up one’s own mind.

[moneyspinner]

Could someone please enlighten me on why is the exports model in China is experiencing such explosive growth? "Management foresee further increase in repeat consumption amongst existing users as well as the number of new users for DR’s Secret line of skincare solutions". But isn't the direct selling license only for 6 consumables health products from the China company that they took over? What's driving growth in the export model? Are distributors stockpiling to convert into the direct selling model later?

Hi Squirrel,

Here are my views.

Under the export model, BWI exports its BWL line of products to its China agent.
 
The China agent, sells the products to its clientele - traditional business owners of hair salons/beauty salons/nail salons/spas, across China.
 
The agent’s clientele sell the products to their customers through their hair salon chains, beaty salon chains, nail salon chains and spas
 
Development of clientele for its China agent is driven by BWI’s market support staff, product trainers together with a few selected leaders of Taiwan. Their involvement is mainly in terms of product trainings, sales techniques training and product presentation etc, on behalf of the agent.
 
Upon obtaining full DS operational approval in their respective city/area, all customers of the agent’s clientele  in that city/area, will be converted into their downlines – a condition which the agent’s clientele have to agree before being appointed
 
Why the exports model in China is experiencing such explosive growth?
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Are distributors stockpiling to convert into the direct selling model later?
 
So far, the DS license granted is only for the city of Hangzhou – and only for 6 Aurigen line of health products.
 
Once the BWL line of products has been approved and admitted into the DS permissible products list, Hangzhou would be ready to be converted into the DS mode for BWL line of products.
 
If they are stockpiling, it would be confined to “distributors” in Hangzhou only - provided there are potential profits to be made – this would be dependent on the “pricing” of the products to be set by BWI under the DS mode.
 
Hence, if the are, the scale and their impacts would not be significant, IMO.
_____________________________________________________________________________________________________________________

Why the exports model in China is experiencing such explosive growth?

Less than 3 months ago we were still discussing on the above question – a very good question posted by squirrel but a difficult one to answer.
 
I wasn’t sure then but did try to GUESS anyway–hence “POSSIBLE” is being used
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Stockpiling by China distributors was cited as one other possible reason- but illegal business practices never crosses our mind at all (not for me at least) at that stage.
 
Compliant with China rules by BWI was an HUGE assumption (implicit) which I took for granted in all my prior analysis.
 
Unfortunately, that didn’t seem to be the case as I have discovered later…………
 
If a KEY assumptions of one’s investment thesis/analysis in a company/stock is no longer valid, flawed or under threat  - then one has to relook at the whole situation to fully understand its potential implications – and if necessary adjust one’s investment accordingly.
 
The consequences of getting this assumption WRONG could potentially be devastating and is not inconsequential – it could have wide and far-reaching implications.
 
An analysis is only as good as its underlying assumptions.
 
Some views remain unchanged as the underlying assumptions remain unchanged.
 
Some views have to change as a consequence of change in the underlying assumptions.
 
After all investing is a dynamic process…………………….
  
So,
What has not changed?
What has changed?
Why it has changed?
How it has changed?
360 degree or 180 degree or 90 degree or zero degree change?
 
One has to make up one’s own mind.

As in all investment it's a calculated risk at the end of the day. It depends on one's risk appetite and risk mitigation strategies should disaster strikes.

[Boon]

The “BWL Convention 2017 Dora Speech 01” video is REAL.
 
Dora literally says she is telling a REAL story on CGL.
 
The passive income received by CGL in FY2016 is REAL.
 
“Passive income scheme” could not be supported and conceived under the “Export/Retail Model” – it could only be supported and conceived under the DS model with multi-level compensation structure.
 
It means “Export/Retail model” is NOT REAL – the outlets are physically REAL – but were set up to disguise or conceal the actual DS activities hidden behind them.
 
If it is not a REAL “Export/Retail Model”:
 
How meaningful would the term “Export Revenue” be?
 
How meaningful would the number (SGD 53 million) be?
 
How “fictitious” could this number be ?
 
SGD 53 m is “fictitious” if CGL’s income is derived from it.
 
If CGL’s income is NOT derived from it, where is the source of his income?
 
Is there a hidden set of account or book somewhere?

I am curious. How does so many DS companies manage to thrive in China having to comply with this  Single Level Commssion Rule?  Some made tonnes of money doing direct sales.  How do they do it?  Don't tell all of them are MLM sales and so are operating 'illegally' in China for so many years and yet  China hasn't stop them?  Why?  If so, why have the Single Commssion Rule and yet not enforcing it strictly?  Again, with MLM practices being so widely practised in China, is this now considered an accepted market practice despite having this rule?  Enforcement may only be done on a case by case basis when there are complaints or malpractices.

All in all, I have a feeling that operating in China is a big black box.  You can do anything so long so long as you don't get caught!

Try google/baidu “非法传销"。

Being investigated or reported as being investigated could sometimes be very damaging to share price and reputation which could in turn lead to lawsuits etc

Are you still vested, Boon?
From the initial excitement of sharing of the company past performance to now, questioning the BWI's business model in China.
You have a 360 degrees change of view on this company.
Why not state your position whether you are still vested, at least we know your position.

Applause to chialc88, at least he state his position.

Cheers!

Whether Chialc88 is still vested or not, it wouldn’t make any difference to Boon.
 
Whether Boon is still vested or not, it shouldn’t make any difference to anyone, should it?
 
If it should, what difference would it be ?

[Boon]

In Business, Risk Never Goes Away, It Simply Evolves
MAR 19, 2016
Chris Meyers


https://www.forbes.com/sites/chrismyers/...88bb035171

[Boon]

Could someone please enlighten me on why is the exports model in China is experiencing such explosive growth? "Management foresee further increase in repeat consumption amongst existing users as well as the number of new users for DR’s Secret line of skincare solutions". But isn't the direct selling license only for 6 consumables health products from the China company that they took over? What's driving growth in the export model? Are distributors stockpiling to convert into the direct selling model later?

Hi Squirrel,

Here are my views.

Under the export model, BWI exports its BWL line of products to its China agent.
 
The China agent, sells the products to its clientele - traditional business owners of hair salons/beauty salons/nail salons/spas, across China.
 
The agent’s clientele sell the products to their customers through their hair salon chains, beaty salon chains, nail salon chains and spas
 
Development of clientele for its China agent is driven by BWI’s market support staff, product trainers together with a few selected leaders of Taiwan. Their involvement is mainly in terms of product trainings, sales techniques training and product presentation etc, on behalf of the agent.
 
Upon obtaining full DS operational approval in their respective city/area, all customers of the agent’s clientele  in that city/area, will be converted into their downlines – a condition which the agent’s clientele have to agree before being appointed
 
Why the exports model in China is experiencing such explosive growth?
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Are distributors stockpiling to convert into the direct selling model later?
 
So far, the DS license granted is only for the city of Hangzhou – and only for 6 Aurigen line of health products.
 
Once the BWL line of products has been approved and admitted into the DS permissible products list, Hangzhou would be ready to be converted into the DS mode for BWL line of products.
 
If they are stockpiling, it would be confined to “distributors” in Hangzhou only - provided there are potential profits to be made – this would be dependent on the “pricing” of the products to be set by BWI under the DS mode.
 
Hence, if the are, the scale and their impacts would not be significant, IMO.
_____________________________________________________________________________________________________________________

Why the exports model in China is experiencing such explosive growth?

Less than 3 months ago we were still discussing on the above question – a very good question posted by squirrel but a difficult one to answer.
 
I wasn’t sure then but did try to GUESS anyway–hence “POSSIBLE” is being used
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Stockpiling by China distributors was cited as one other possible reason- but illegal business practices never crosses our mind at all (not for me at least) at that stage.
 
Compliant with China rules by BWI was an HUGE assumption (implicit) which I took for granted in all my prior analysis.
 
Unfortunately, that didn’t seem to be the case as I have discovered later…………
 
If a KEY assumptions of one’s investment thesis/analysis in a company/stock is no longer valid, flawed or under threat  - then one has to relook at the whole situation to fully understand its potential implications – and if necessary adjust one’s investment accordingly.
 
The consequences of getting this assumption WRONG could potentially be devastating and is not inconsequential – it could have wide and far-reaching implications.
 
An analysis is only as good as its underlying assumptions.
 
Some views remain unchanged as the underlying assumptions remain unchanged.
 
Some views have to change as a consequence of change in the underlying assumptions.
 
After all investing is a dynamic process…………………….
  
So,
What has not changed?
What has changed?
Why it has changed?
How it has changed?
360 degree or 180 degree or 90 degree or zero degree change?
 
One has to make up one’s own mind.

As in all investment it's a calculated risk at the end of the day. It depends on one's risk appetite and risk mitigation strategies should disaster strikes.

The consequences of "cheating" illegally to gain comparative advantage could be permanent shut down of China operation/revoke of DS license/ No revenue from China...

If that happens,
Revenue/profit would drop
Share price would drop
Investors suffered losses
Investors could sue the Company for misleading them
Company could go bankrupt........

What's your risk mitigation strategies for that?

[Temperament]

Anything to do with money/investment, how can there be no risk?

Are G's bonds or CPF money risk free (aka zero risk i mean)?

Only invest if you understand the risks of the product.

Not vested.

[moneyspinner]

Best World 1H2017 profit surges 62.7%; 

Increases dividend payout policy to 40.0%


Singapore, 7 August 2017 – Mainboard-listed Best World International Limited (“Best World” or the “Group”) announced today a 62.7% surge year-on-year (“YoY”) in Net Profit Attributable to Owners of the Parent Company of $21.7 million for the six months ended 30 June 2017 (“1H2017”), bolstered by strong performance in its largest and fastest growing market – China.

[color=#222222]Group’s Co-Chairman and President, Dr. Doreen Tan commented, “Against macroeconomic headwinds, we have continued to deliver strong growth momentum and are extremely heartened to see our endeavours in the China market paying off. This validates the confidence in our ability to penetrate deeper into our fastest growing market. With a proven business model, which is both sustainable and profitable for the long-term, we believe that this is only the beginning of a new growth era.”[/

Group CEO, Dr. Dora Hoan added, “We remain cautiously optimistic of our performance for FY2017 as we head into the seasonally stronger second half. While we maintain our growth trajectory, maximisation of shareholders’ value remains a high priority. Towards this end, the Board of Directors has revised the Company’s dividend policy by increasing our payout ratio, underscoring our commitment to achieve good Corporate Governance and to maximise shareholders’ return.”


[Image: thumbsup.gif]

[moneyspinner]

Could someone please enlighten me on why is the exports model in China is experiencing such explosive growth? "Management foresee further increase in repeat consumption amongst existing users as well as the number of new users for DR’s Secret line of skincare solutions". But isn't the direct selling license only for 6 consumables health products from the China company that they took over? What's driving growth in the export model? Are distributors stockpiling to convert into the direct selling model later?

Hi Squirrel,

Here are my views.

Under the export model, BWI exports its BWL line of products to its China agent.
 
The China agent, sells the products to its clientele - traditional business owners of hair salons/beauty salons/nail salons/spas, across China.
 
The agent’s clientele sell the products to their customers through their hair salon chains, beaty salon chains, nail salon chains and spas
 
Development of clientele for its China agent is driven by BWI’s market support staff, product trainers together with a few selected leaders of Taiwan. Their involvement is mainly in terms of product trainings, sales techniques training and product presentation etc, on behalf of the agent.
 
Upon obtaining full DS operational approval in their respective city/area, all customers of the agent’s clientele  in that city/area, will be converted into their downlines – a condition which the agent’s clientele have to agree before being appointed
 
Why the exports model in China is experiencing such explosive growth?
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Are distributors stockpiling to convert into the direct selling model later?
 
So far, the DS license granted is only for the city of Hangzhou – and only for 6 Aurigen line of health products.
 
Once the BWL line of products has been approved and admitted into the DS permissible products list, Hangzhou would be ready to be converted into the DS mode for BWL line of products.
 
If they are stockpiling, it would be confined to “distributors” in Hangzhou only - provided there are potential profits to be made – this would be dependent on the “pricing” of the products to be set by BWI under the DS mode.
 
Hence, if the are, the scale and their impacts would not be significant, IMO.
_____________________________________________________________________________________________________________________

Why the exports model in China is experiencing such explosive growth?

Less than 3 months ago we were still discussing on the above question – a very good question posted by squirrel but a difficult one to answer.
 
I wasn’t sure then but did try to GUESS anyway–hence “POSSIBLE” is being used
 
Possible reasons:
-      Good and safe quality products.
-      Value for money
-      Good development support in developing the agent’s clientele
-      Scalability of the export model – though not as scalable as the DS model.
-   China is a huge consumers market  
 
Stockpiling by China distributors was cited as one other possible reason- but illegal business practices never crosses our mind at all (not for me at least) at that stage.
 
Compliant with China rules by BWI was an HUGE assumption (implicit) which I took for granted in all my prior analysis.
 
Unfortunately, that didn’t seem to be the case as I have discovered later…………
 
If a KEY assumptions of one’s investment thesis/analysis in a company/stock is no longer valid, flawed or under threat  - then one has to relook at the whole situation to fully understand its potential implications – and if necessary adjust one’s investment accordingly.
 
The consequences of getting this assumption WRONG could potentially be devastating and is not inconsequential – it could have wide and far-reaching implications.
 
An analysis is only as good as its underlying assumptions.
 
Some views remain unchanged as the underlying assumptions remain unchanged.
 
Some views have to change as a consequence of change in the underlying assumptions.
 
After all investing is a dynamic process…………………….
  
So,
What has not changed?
What has changed?
Why it has changed?
How it has changed?
360 degree or 180 degree or 90 degree or zero degree change?
 
One has to make up one’s own mind.

As in all investment it's a calculated risk at the end of the day. It depends on one's risk appetite and risk mitigation strategies should disaster strikes.

The consequences of "cheating" illegally to gain comparative advantage could be permanent shut down of China operation/revoke of DS license/ No revenue from China...

If that happens,
Revenue/profit would drop
Share price would drop
Investors suffered losses
Investors could sue the Company for misleading them
Company could go bankrupt........

What's your risk mitigation strategies for that?

Aiyoh!  If not comfortable just sell.