1990165438+10, the first company in China to formally apply for registration as a direct selling company-the Sino-US joint venture Guangzhou Avon Co., Ltd. was established, marking the formal entry of the direct selling model into the China mainland market. The way that direct sellers come to explain and sell goods has aroused the concern of the society about this new marketing method.

Avon's entry and the success of its initial operation have played a strong demonstration role. Facing the huge China market, other foreign direct selling companies followed closely, and entered China in the form of sole proprietorship and joint venture from 1992. Some domestic enterprises have followed suit.

2. Secondly, chaotic operation has reached the initial normative stage (1994-1997).

With the entry of direct selling, direct selling is used by some lawless elements to engage in illegal pyramid selling and pyramid selling under the banner of direct selling. According to the statistics of relevant departments, by the end of 1995, most enterprises engaged in pyramid selling in China were operating illegally.

These enterprises have neither registered nor standardized marketing methods. Most of them "pull people's heads" to varying degrees, or force their products to be sold at outrageous prices. Some even use direct selling to engage in fraud, cliques, superstitious gatherings and other activities, which seriously affect social stability and public safety.

Some illegal pyramid schemes use "get rich quickly" as bait to let people who don't know the truth join, which seriously damages the interests of consumers, disrupts market order and affects social stability. In this regard, the relevant authorities of our government have successively issued a series of laws and departmental rules to regulate the chaos in direct selling. Despite this, the chaos of pyramid schemes and a large number of illegal fraud activities have not been fundamentally curbed.

3. Third, pyramid selling is prohibited and some foreign direct selling enterprises are transformed into operational stages (after 1998).

At that time, China's market development was still relatively low, the supervision means were not perfect, the residents' consumption psychology was immature, and they didn't know much about direct selling. In addition, some people are eager to get rich quickly, which leads to many people being cheated and gives illegal direct selling operators an opportunity.

Facing the increasingly serious harm of illegal pyramid selling activities to social stability and consumers' rights and interests, the government of China resolutely took severe measures to ban pyramid selling, and issued the Notice of the State Council on Prohibiting MLM Business Activities with 1998.

4. Fourth, the opening of direct selling market and the formal promulgation of direct selling laws and regulations (September 2005)

According to the economic growth of China, the development of diversified circulation mode and the fulfillment of WTO commitments, China has accelerated the process of direct selling legislation.

In September 2005, the State Council promulgated the Regulations on Direct Selling Management (Order No.443 of the State Council) and the Regulations on Prohibiting MLM (Order No.444 of the State Council), which came into effect on June 5438+0/KLOC-0 and June 5438+0, 2005 respectively. The promulgation of these two laws and regulations marks the opening of the direct selling market in China, and the legislative process of direct selling has entered a new stage.

Extended data:

Advantages:

In China, direct selling has solved the development problem of a large number of employed people and eased the current severe employment situation. Therefore, direct selling has received strong support from the state and the government.

For direct selling practitioners, direct selling is a low threshold and self-made entrepreneurial model; On a global scale, there is no entrepreneurial model that can attract tens of millions of people from different races, backgrounds and environments around the world, and no industry can be so fascinating and grow rapidly.

As an entrepreneurial model, direct selling meets people's needs to realize the value of life. For enterprises, direct selling can quickly achieve profit targets. For direct selling entrepreneurs, joining the ranks of direct selling entrepreneurship can realize the entrepreneurial dream of low threshold (no education, no experience and no qualifications).

The huge market space of direct selling in China depends on three factors: first, the regional scale; The second is the number of people; The third is the strength of consumption purchasing power.

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