A Castle Built on Sand: Challenges and Opportunities for Network Marketing in China

作者/编者:Mark Schaub, Atticus Zhao and David Hong
作者单位:金杜律师事务所
创作年代:2017
出处/来源:金杜律师事务所
学科分类:商法学
所属机构:金杜律师事务所
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摘要

China is the promised land for many international Network Marketing companies, and China has what Network Marketing companies thrive on. Over 40% of Chinese customers favor international health brands and 9 out of the top 10 cosmetics companies in China are international. However, it is very important to note that despite this opportunity network marketers do face real and serious challenges in China. The Network Marketing companies that insist upon using their traditional business models have the choice of operating non-compliantly in China and face great risk or wait outside and possibly miss out on a great opportunity. The Network Marketing companies that have seized the opportunity and operate non-compliantly within China may be building a large, profitable company but this company may be built upon sand and will collapse in an instant. These Network Marketing companies should consider whether they can legitimize their operations by obtaining a Direct Sales License or by restructuring its business operations so as to be compliant with PRC laws.

关键词: Network Marketing; Regulatory Challenges; Compliance Challenge; Technological Challenges

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