The Revised Look of Direct Selling in China:
Three Short Cases
Ben Judd
Cheng Lu Wang
Introduction
After the 1998 government crackdown on direct selling activities in the People’s Republic of China, some expected a continuing decline in the businesses primarily focused on that distribution model. The reality is different; the companies are expanding. Government requires that direct selling be integrated with retail outlets but does not end key activities. This paper reviews the experience of three U.S. firms (Amway, Avon, Mary Kay) in this process. Their experience is related to China’s cultural, demographic, economic and political environment. Managerial implications are suggested for firms entering the emerging China market.
Key words
direct selling, multilevel marketing, People’s Republic of China, Amway, Avon, Mary Kay, entry strategies
