China’s Direct Selling Market is Growing

China is a complicated country with a complicated identity crisis that it’s currently facing. While the country waves the flag of communism and socialism at home and abroad, those who have been know that this isn’t truly the case on the ground. As it turns out, China is a country of consumers and consumption. It is easily one of the most capitalist countries in the world and because of this, it is perfect for direct selling and multi-level marketing. People in China are encountering wealth they’ve never experienced before and they want to buy things. Add to this that families are very close, and you have a country full of willing and able buyers and sellers.china-641112_640

Over the past decade, China has seen a boom in direct selling companies. Tax revenue from these companies has hit over 30 billion Yuan ($4.7 billion), according to the Ministry of Commerce, and it will simply continue to grow as more and more money flows into the country. As of now, China has 71 direct selling companies that are employing over 2.8 million people and both numbers are growing rapidly. Everything is being sold from cosmetics to medical supplies and as the economy and country continues to grow, it only makes sense that these sorts of direct selling companies will grow as well.

In 2014, direct selling alone paid 5.7 billion Yuan in taxes and had revenues reaching 25.1 billion Yuan. This speaks not only to the success of the network marketing plan and the Chinese desire to sell, but also to the Chinese desire to buy and better their own lives. Due to this explosion in direct selling and multi-level marketing, the Chinese Ministry of Commerce has announced that it is going to strengthen its supervision over this market so that consumption can be increased and more people can find employment in these companies. With the added safeguards of governmental supervision making sure practices aren’t corrupt and are following the law, it can only be assumed that network marketing and direct selling are simply going to continue to increase.

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