It Works! recently opened its first Asian affiliate here, confident that the U.S.-based direct sales company can overcome difficulties in operating such a businesses in Korea.
It Works, founded in 2001, posted $686 million in sales in 2016. It has offices in 22 countries in Europe and Oceania.
For years, the nation’s direct sales market has been regarded as a fierce battlefield.
Fifty companies are registered as members of Mutual Aid Cooperative & Consumer, a mutual aid society of multi-level marketing companies. Some Korean consumers have shown their dislike of such businesses on an online forum named Anti-Amway.
The Fair Trade Commission’s data on the payment gap between the top and bottom layers of recruits has also caused doubts about the revenue model.
But It Works global chief sales officer Mike Potillo, who visited Korea last week to promote the company, was confident the company would be competitive.
He cited the Ultimate Body Applicator, which is exclusively available at It Works, as an example.
Potillo said the non-woven cloth wrap tightened, toned and firmed users’ skin, if they wear the wrap for just 45 minutes.
“Our rivals may market vitamins or skincare products, but they do not have the product like the wrap,” he stated in Seoul last week.