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Direct Selling in China

China direct selling market: Amway the leading player during 2012

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2014-03-11 04:37:01 - Direct Selling in China - a new market research report on

Amway (China) Co Ltd held a clear lead in the China direct selling market in 2012, with over one third of total value sales. Amway has established high brand awareness among consumers through years of market cultivation. Its consistent product quality is also in line with consumers´ rising demand for better healthcare products, amid the rising pursuit of personal well-being among Chinese consumers with growing disposable incomes.

Direct selling represented only 1% of total retailing value in China in 2012, the third smallest among all channel, only bigger than vending and homeshopping in value terms. The government´s determination to standardise the direct selling market by issuing direct selling licences has now provided a sound operational environment for industry players, and direct



sellers have also endeavoured to develop the business, in view of its great potential. These positive factors contributed to the robust current value growth of direct selling in China in 2012, of 20%.

Direct selling is expected to grow with a strong value CAGR of 9% in the forecast period, driven by a number of factors. Firstly, Ministry of Commerce of China is likely to accelerate the direct selling licence approval process, which may help corporations obtain a licence more quickly. Only around 30 enterprises have been granted a licence since 2006. Secondly, many leading players increased their investment in 2011 and 2012, including Nu Skin and Mary Kay, indicating their confidence in the direct selling channel in China. Their follow-up market movements in the forecast period are likely to make substantial contributions to the healthy growth of the direct selling market as a whole.

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Mike King
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