MLM In China - Comment On New Regulations
China earlier this month finalized long-awaited rules governing direct sales, eliciting a lukewarm reaction from industry heavyweights like Amway Corp. and Nu Skin Enterprises Corp.
?The administrative intervention goes too far into the micro facet of business operations,? said an Amway official, who declined to be named. In China, Amway sells skin-care and nutritional products as well as a range of home items, such as laundry detergent.
The new rules require companies that engage in direct sales?the practice of selling goods or services through salespeople rather than in retail stores?to have registered capital of 80 million yuan ($10 million) in a China unit. In other industries, the capital requirement is only five million yuan.
?The administrative intervention goes too far into the micro facet of business operations,? said an Amway official, who declined to be named. In China, Amway sells skin-care and nutritional products as well as a range of home items, such as laundry detergent.
The new rules require companies that engage in direct sales?the practice of selling goods or services through salespeople rather than in retail stores?to have registered capital of 80 million yuan ($10 million) in a China unit. In other industries, the capital requirement is only five million yuan.
posted by the MLM News Desk at
8:33 AM
