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Home > News > Market Flash > Direct sales of health products in '100 Days Action' have been cut by 40%.

Direct sales of health products in '100 Days Action' have been cut by 40%.

ECHEMI 2019-05-09

Direct-sales-of-health-products-in-100-Days-Action-have-been-cut-by-40%

After the 100-day operation, the direct selling industry may face more stringent supervision. Recently, the Nandu Health Products Compliance Research Center noticed that 13 departments, such as the State Administration of Market Supervision, have reported the results of the 100-day campaign to rectify the disorder in the "health care" market. The Ministry of Commerce said that during the 100-day campaign, direct-selling products, direct-selling trainers and direct-selling personnel in the direct-selling industry have been centrally cleaned up.

Although the number of direct-selling products and practitioners that have been cleaned up has not yet been published, what is the proportion of direct-selling health products in the total batch? What is the number of direct sales trainers? In addition, how many direct selling enterprises were inspected by the Joint Supervisory Group during the 100-day operation? Nandu reporters present the data through sorting out.

Amway has the largest number of approval documents for direct marketing of health food

According to the relevant person in charge of the Ministry of Commerce, during the 100-day operation period, it has suspended the examination and approval of direct marketing licenses, products and service outlets for filing, conducted a comprehensive investigation of direct marketing enterprises, sorted out illegal business clues, organized the re-registration of direct selling products, direct marketing trainers and direct sellers, and centralized cleaning up. Direct products and practitioners that do not conform to the actual situation. According to preliminary statistics, more than 40% of direct selling products have been reduced, 15% of direct selling trainers and 15% of direct selling trainers have been reduced.

So far as the open data are concerned, who is the "approval brother" of health food in domestic direct-selling enterprises, and which direct-selling enterprises have the highest dependence on health food? In this regard, Nandu reporters recently based on the Ministry of Commerce direct marketing industry management system, the approval data of the direct marketing industry for large data analysis.

Through the database, Nandu reporters found that the three giants in the domestic direct selling industry, namely infinite pole, Amway and perfect, did not depend heavily on health food in terms of the proportion of approvals. The proportion of health food allowed to carry out direct selling among all approved products was about 15%, 9% and 15%, respectively. This proportion is much lower than that of Tianshi, Tianshi, which is currently widely concerned. According to the latest data, the proportion of Quanjian in this area is also below the industry average, which is 15%.

The companies with the highest proportion in this area are Sun Shen, East Asian Gum, Compaolai, Jiuji Biology, Kangli Medicine and Kangmei Pharmaceutical Industry. All the direct-selling products of the above-mentioned companies are health food, accounting for 100%. Among them, 28, 18 and 16 health food products were approved by Sun Shen, Donga Jiao and Compaolai respectively. In contrast, the lowest proportion is Mary Kay, because there is only one health food in the direct marketing approval, and a large number of cosmetics direct marketing approval, the proportion of Mary Kay in this respect is only 0.4%.

and if only look at the absolute number of health food approved for direct marketing, the traditional three giants are still outstanding in this respect. The data show that as a former "brother" in China, Amway currently has 42 authorizations for direct marketing of health food; Tianshi ranks second with Sun God in the 24 direct marketing companies analyzed by Nandu reporters; Perfect and San In the above-mentioned circular data of the State Administration of Market Supervision, direct sales trainers and direct sales personnel are also reduced by 15%. According to Nandu's reporters, only direct sales trainers can be checked in the data published by the Ministry of Commerce at present. Which direct sales enterprise has the largest number of direct sales personnel?

Nandu reporters combed the data to understand that "direct sales brother" Amway currently ranks first with 461 direct sales trainers, followed by Perfect (407 people), Infinite Pole (362 people), Mary Kay (292 people) and Ruxin (228 people), and according to the statistics of Nandu reporters, more than 100 direct sales trainers registered by Compaolai and the New Age. From the data of cancelled direct-selling trainers, Nandu reporters noticed that the number of newly cancelled direct-selling trainers was 327, which was more than the number of existing direct-selling trainers. The number of direct-selling trainers cancelled by Amway was 407, almost equal to the number of registered trainers. In addition, 106 direct sales trainers and 91 direct sales trainers with unlimited poles and perfect cancellation were trained respectively. In addition, the number of direct-selling trainers in Sun Shen, Kangmei Pharmaceutical Industry and Jiuji Biology, which are all direct-selling enterprises of health products, basically does not exceed 20. Among them, Kangmei Pharmaceutical Industry currently has only one direct-selling trainer, two of whom have been cancelled before. After 23 direct selling enterprises were inspected in the "100-day Action", the relevant departments checked the products and personnel of direct selling enterprises. According to Nandu reporters, in fact, in the "100-day Action", direct selling enterprises have become the focus of inspection by the supervising group.

Nandu reporters learned from the information statistics of "100-day Action" supervision of 24 provinces, municipalities and autonomous regions published by the State Administration of Market Supervision that 23 direct-selling enterprises, except Shanxi, Gansu, Fujian and Hubei, did not publish the list of inspected direct-selling enterprises, encountered on-site inspections and inspections by the "100-day Action" supervision group, of which Ann was the most frequently "visited" by the supervision group. Li, a total of 11 times were checked; followed by infinite poles, 6 times; perfect three times were checked; Mei Linkai and Tongrentang met two checks respectively.

During the period when the relevant enterprises were strictly investigated, some direct selling enterprises were also concerned by the society because of some incidents.

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.
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