The management of MLM business in Taiwan.pptVIP

The management of MLM business in Taiwan 1945: Nutrilite Corporation 1997: direct selling industry = US$80.47 billion → 2.06% growth compared with 1996 31 million employees → +25% competition issues Political, economic and social Fraudulent pyramid schemes (since 1960) April 1998: China suspended all MLM activities bad image - europe: snow ball system - japan: silver rat, money rat, rat club 1997: government regulatory agencies, MLM practitioners and media joined effort to change the image of MLM Taiwan total sale turnover: NT$40.1 billion → - 1.8% (1996) Taiwan average sale volume: NT$167.16 million → + 5.3% (1996) Taiwan total number of distributors: 2.72 million → 12.56% of total population → N°3 in the world Taiwan MLM industry in 1997 Competition from both local and foreign firms Eroded consumer loyalty Changing consumer needs - 3.36% in the number of new DS distributors - 4.38% and – 2.52% decrease of orders and bonuses received by DS distributors N°3 but the productivity of distributors decreased Opportunities: domestic market liberation measures, globalization Threats: more pressure ? Innovative and flexible management approach Research objective and method The aim of this research is to provide information about the current management of DS distributors in Taiwan MLM industry. Issues: education and training the incentive communication turnover application of computer public relation. Method used: personal interview executives from 8 foreign and local MLM companies Challenge: to develop an attractive package to cater all the needs of the DS distributor ?CEO of Nutri-Metrics International view: Strong leadership in MLM business management Effective management needs: reward recognition ability to duplicate the company’s success formula good relationship between distributors and the management Constant training program Network Marketing Magazine survey (1998): 60% of the respondents stayed less