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The Amway business in China has been
completely reconsituted following a government ban on all direct
selling. InterNET spinmeisters have been busy tyring to turn
this into a "positive." On the InterNET web site, they
announced,
With the full approval of the Chinese
Central Government in Beijing, Amway China re-launched on July
21, 1998 with a new, modified business plan. Negotiators from
Amway and China are to be congratulated on their diligence, creativity,
flexibility and tenacity in successfully developing an operational
plan that satisfies the requirements of the Chinese government
as well as the expectations of Amway. This was no small feat!
Here's a summary of what Yager's AMO,
InterNET Services Corp., has to say about doing business in China
under the new rules.
- Amway is not viewed as a
"special business opportunity" with "independent
business distributors" building a personal business.
- Amway will conduct retail
sales to anyone that enters an Amway shop and asks to purchase
product.
- Amway no longer uses distributors.
Amway now has employees and customers.
- There are different kinds
of customers: retail, "priviliged," and "sales
representative." Details of requirements for "sales
manager" will be announced.
- A "privileged"
customer can buy products at a 15% discount, after purchasing
an "Amway Discount Card". He must be introduced by
an Amway employee.
- A "sales representative"
is a "privileged customer" who has at some time received
a bonus.
- It will no longer be necessary
to purchase an Amway Starter Kit - 700 RMB ($85.00 USD) to join
the Amway business in China.
- Former distributors will
be receiving letters from Amway, establishing them as "privileged
customer," "sales representative" or "sales
manager."
- There will be recognition
of new Silver Pin Representatives,. Gold Pin Representative and
Direct Representatives but little or no recognition from the
company for higher pin success.
So if Amway doesn't need distributors
in China, why do they need distributors anywhere else?
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