Retailing, Franchising, and Consumerism Business Intelligence in China

Amway Envisions China Losses

Amway will probably see a lower sales revenue in China this year as it is still restructuring its sales network to comply with new regulations on direct selling.

China Daily reports that Amway's senior company officials said the firm still had to make some slight changes to keep in line with the rules which took effect in December last year.

Those rules say direct selling must adopt a single-level billing system instead of the previous team-billing scheme.

Amway operates in more than 80 countries and territories, selling a range of items including nutritional supplements, cosmetics and cleaning products.

Direct selling was banned in China in 1998 as many people found it hard to differentiate between it and pyramid schemes. But the government was committed to re-introducing a form of direct selling after it joined the World Trade Organization in 2001.

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