1990165438+1October 14. China the State Council administration for industry and commerce signed a contract with Avon group, an American pyramid selling company, to allow Avon to conduct business in China in the form of pyramid selling. In this way, China began the operation of pyramid selling. So why introduce pyramid schemes? There is a simple reason. From 65438 to 0979, the China government began to reform and open up, and the early 1990s was the transitional period of reform. "Reform" means changing the old economic system, including various production and sales models and management models. Introduce and learn advanced models and business ideas from other countries. During this transitional period, China government not only introduced MLM, but also introduced some advanced economic operation modes from abroad, such as futures, real estate, insurance and stocks. In order to promote and make up for the shortcomings and gaps in the country's economic development, so as to achieve the goal of enriching Qiang Bing.
MLM was first introduced to China, only suitable for some middle class and upper class in society, but ordinary people were also in an uproar at that time.
On the other hand, the blind consciousness of following the trend makes people suffer greatly and complain a lot. We should know some harsh conditions of pyramid selling, such as performance pressure, circular investment, zero return system, hereditary system and so on. People who don't have a certain amount of money can't do it. To put it bluntly, ordinary people simply can't stand the impact of these harsh conditions and eventually lead to failure.
In addition, that is, the most important reason for the failure of pyramid schemes is mainly the mistake of state operation, which has formed the ultimate social adverse impact and failure. 1996, China the State Council administration for industry and commerce approved MLM company personally. At that time, the number of MLM companies approved by the state was 4 1. At that time, 4 1 MLM companies were simply not enough in the land of China with a population of over one billion. At that time, small and medium-sized enterprises in China "reported" to the State Council Administration for Industry and Commerce. At this time, the country's mistakes appeared. Under pressure, the state delegated the right of special approval from the central government to the provincial level. In this way, each province has the power of special approval. Therefore, pyramid schemes are everywhere in Chinese mainland, but few people are aware of the hidden dangers.
From14 MLM companies specially approved in 1996 to the beginning of 1998-the number of MLM companies soared to more than 5,000. During this period, the leather bag company had the opportunity to cheat people's money by various deceptive means. Even Guangzhou Xingtian Company, one of the 4 1 corporate companies specially approved by the state at that time, watched all kinds of leather bag companies earn a lot of money. In such a big environment, the confusion between true and false pyramid schemes made the people confused, and then they were deceived, which led to the tragic situation that the whole country cried and the family was ruined, resulting in all kinds of chaos in social security and economic order. Under this general trend, the country had to reluctantly give up what one favours, and the children spilled dirty water together. 1998 April 18, China Central State Administration for Industry and Commerce issued the Notice of the State Council on Prohibiting MLM Business Activities. On April 2 1, 1998, pyramid selling was completely banned, and it will no longer exist on the land of China ... What happened in the mainland of the motherland after 98 years is worth digging again and thinking deeply!