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How were the once-bright direct selling brands Amway, Avon, Nuxin?

Release date: 2019/12/9 13:32:09 Browse:

Source time: 2018-10-15

Original title: How are the once-bright direct selling brands Amway, Avon, and Nuxin going? McKinsey survey report shows that with urbanization

Original title: How are the once-bright direct selling brands Amway, Avon, and Nuxin going?

McKinsey's survey report shows that with the development of urbanization, the proportion of China's urban population will reach 65 in 2020, the middle class will increase by 94 million, and consumption upgrades will drive the entire society from the service economy to the era of experience economy. Consumers are no longer satisfied with quality and cheap products, and the pursuit of quality, brand, personalization and high-quality experience has become the advanced needs of consumers.

Especially in the post-80s and post-90s consumer groups, their consumption of cosmetics is by no means soft, and they will spend thousands of yuan to buy a bottle of CPB cream and the essence of the sea blue mystery. It always has something to do with MLM. Will emerging groups recognize them? How are these direct selling cosmetics brands doing today?

Mary Kay: Negative Rumors Winning Through Experience Disappointed

When it comes to China's direct cosmetics market, Mary Kay is a well-deserved giant. In 1995, Mary Kay entered China and started profitable seven years later. In 2015, Mary Kay's direct sales in the Chinese market was second only to Amway, accounting for 26.08 of the total direct sales of direct sales companies in China. Today, Mary Kay's sales in China have surpassed the United States, and China has become Mary Kay's largest market in the world.

Euromonitor International Consulting, an internationally renowned independent market research organization, has released an annual ranking of global skincare brands. In this survey, which covers more than 160 world-renowned brands, the Mary Kay brand is among the top five.

Mary Kay's success, in addition to high-tech content, high security products, service experience is also a key factor to enhance the brand ’s goodwill and reputation. Mary Kay brings a new and beautiful experience to Chinese women with personalized and quality services. Maybe you spend thousands of dollars in the counter to buy the products of the mystery of the sea blue, in exchange for just the disdain of the clerk. Through the "face-to-face beauty class", Mary Kay's 3.5 million beauty consultants around the world provide consumers with personalized services and product trials and explanations of skin care knowledge, so that every consumer can master and maintain when leaving the beauty class. Methods for healthy skin, and tips for using cosmetics to increase natural beauty.

It is undeniable that Mary Kay's achievements in women's awakening, but Mary Kay's compensation system was once questioned by MLM.

Previous reports have stated that, among Mary Kay's various compensation methods, in addition to personal performance, all are calculated based on departments (groups). Mary Kay's multi-level bonus compensation (or team pay) and the direct sales industry of the Ministry of Commerce The management specifications are inconsistent, forming three main characteristics that are in compliance with the Regulations on Prohibition of MLM, paying or disguising entry fees, pulling people to develop offline relationships, and forming a multi-level paid MLM.

According to the Regulations on Prohibition of MLM, those who conduct pyramid schemes and organize pyramid schemes shall be confiscated by the administrative department of industry and commerce for illegal property, confiscate illegal gains, and be fined from 500,000 to 2 million yuan; if a crime is constituted, criminal responsibility shall be investigated .

Even if Mary Kay provides consumers with the best service and experience, the emergence of MLM news will still take time to restore consumers' hearts.

Avon: Downturn in Performance Retargets Young People

After 60, after 70 should be no stranger to Avon. In 1990, Avon entered the Chinese market through direct sales. During its heyday, many product lines covered young and middle-class consumers at the time.

In 1997, Avon China had 350,000 direct sales staff and annual revenue of more than 1 billion yuan. It is a brand with excellent product quality and image in the skin care market. Brand stores have also become the most common chain brands in each city.

Today, 131-year-old Avon is no longer brilliant in the Chinese market, and Avon, which once had 350,000 direct sales staff, has only 709 people left. After changing the head several times, the strategy was indecisive, and became the core of criticism.

After a number of channel strategy adjustments, Avon is currently practicing the concept of “where consumers go, Avon goes there” and promotes the omni-channel layout of “beauty specialty stores, e-commerce cosmetics specialty stores / supermarkets”. On this basis, Avon uses Tmall's flagship store and WeChat public account as its core base to realize the closed loop of new retail.

Thousands of physical stores across the country are still Avon's core channel, where Avon has launched a full range of products. At present, Avon Warm Flower Room 6.0 image stores, which have the same value as "experience" and "experience", have been completed in 138 nationwide, and more than 100 stores are in the process of upgrading.

As a direct selling brand, member resources have always been Avon's core asset. Through refined maintenance, Avon's membership in 2017 increased from 2.5 million at the beginning of the year to more than 3 million at present. The sales contribution ratio of members in Avon stores is as high as 75, and loyalty is high. In the next step, along with the high-end products, the VVIP high-end membership plan will become the direction of upgrade management.

One interesting piece of information is that among Avon's millions of WeChat members, the proportion of consumers between the ages of 18-35 is as high as 70, which surprised the industry.

In order to have more new opportunities for communication with young people, in addition to the social communication methods that have been tried to fit the hotspots, scene-based emotional communication and other social communication methods, Avon will soon join hands with the popular traffic niche as the star series "Little Black Dress" Endorsements, creating topics, and detonating social platforms.

Amway: In-depth youthful strategy is full of confidence in the future

Amway achieved total revenue of $ 8.8 billion in 2016, which was $ 9.5 billion in 2015, and the decline in the Chinese market is considered to be an important reason for this result. Although the direct sales performance has continued to decline in the past two years, Amway President De Divis is still confident in Amway China's business in China.

In order to boost performance, Amway China has also entered a business adjustment period in the past two years, including reorganizing the organizational structure. In 2016, Amway opened an online mobile studio for marketers. Amway marketers can interact with customers through a new online platform to enhance customer recognition of Amway products and businesses.

After the group entered the transition period, Amway began to try to move closer to youth from both strategy and products.

On October 10, 2017, ARTISTRY's skincare brand ARTISTRY launched a new product that focuses on the concept of ampoule-hyaluronic acid vitamin C double-effect essence, which is different from the previous target of middle-aged and elderly female consumers, this time it is aimed at young consumers The new product essence introduced by the author is a breakthrough for ARTISTRY who has always shown the image of mother-level skin care products. As a high-end product of Amway and also one of the world's top five high-end skin care brands, ARTISTRY, the launch of new products will undoubtedly open up the market for young white-collar workers. At present, new products can be purchased at Amway stores, Amway Easy Connect and App Amway Cyberport.

From an in-depth understanding of young people's preferences and values, to the launch of products that meet the individual needs of young people, to the creation of entrepreneurial platforms that can attract young people to fully display their talents, Amway believes that the "youngization strategy" is launched because of the growth of young people now. The process is different from any previous generation. They have formed their own unique lifestyle, and this lifestyle is exactly the mainstream of the future. What Amway has done is to find a way to communicate with young people.

As new: involved in "MLM storm brand development efforts to recover

The entry into the Chinese mainland market in 2003 was as new, and the road of development seemed to have not been smooth. In the first few years, I encountered some difficulties and problems because I was not sure about the market environment. From 2005 to 2006, after a few years of market cultivation, Nuxin's brand has gradually been widely recognized in the Chinese market. Since then, it has experienced continuous adjustment and exploration of the market structure. Nuxin finally has operations that meet the needs of the Chinese market. Conception—composite experiential marketing combining physical stores and direct sales.

However, in early 2014, the People's Daily published three articles in succession, bombarding Nuoxin Group for alleged illegal operations, pointing directly at its MLM activities in China. As soon as the news came out, as the new stock price dived immediately, one day fell to 26. Under a series of public condemnations, such as the new apology, it announced a suspension of recruitment of distributors in China.

After the "three batches of as new" incident gradually subsided, in recent years, public direct selling companies have implemented a "younger" strategy. Nu Skin has released a new brand proposition-foreseeing a better self, launching new products in a timely manner during the hot sales season, and targeting Olympic hotspots. Olympic star Ning Zetao's role as Nuxin's image ambassador has also greatly increased the enthusiasm of dealers. .

According to Nuxin's latest financial report, as of the end of March 2017, the Group's revenue increased by 5.8% year-on-year, and the fixed exchange rate increased by 6 to reach 499.1 million US dollars. The largest market, Greater China, is gradually recovering.

Although the development of direct selling brands is not as hot as in the 1990s. But with the development of diversified channels, local cosmetics brands are also eager to try direct sales channels. Earlier, relevant departments announced that Po Laiya Cosmetics Co., Ltd. and Guangdong Yaqian Cosmetics Co., Ltd. had submitted application reports to the Ministry of Commerce. Many daily chemical companies and cosmetics companies have begun to pay attention to direct selling a few years ago and discussed the feasibility of enterprises entering direct selling.

When enterprises are eager to test the direct selling industry, the state's regulation of the direct selling industry is also increasing. After the establishment of the State Administration of Market Supervision and Administration, it has continued to make great efforts to fight against the spread of regulations. Following the release of the "Opinions of the State Administration of Market Administration on Further Strengthening the Fight against MLM" on April 3, 11 cities including Langfang and Beihai were listed as After rectifying the key MLM cities in 2018, it released the Opinions of the State Administration of Market Supervision and Administration on Further Strengthening Supervision and Administration of Direct Selling (hereinafter referred to as the Opinions) on April 8. This time, the Municipal Administration of Supervision will regulate the key points Direct distributors: "If there is evidence to prove that the MLM behavior of the distributor is in accordance with the agreement with the direct selling company or supported and instigated by the direct selling company, the industry and commerce and market supervision authorities shall punish them in accordance with the relevant provisions of the" No MLM Regulations " Dealers also punish direct selling companies. "

(Responsible editor: Sun Penghao)

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