China has seen a growing number of direct selling companies in the past decade with their tax revenue hitting over 300 billion yuan ($4.7 billion), the Ministry of Commerce (MOC) said on Wednesday.
China now has 71 direct selling companies emplying over 2.8 million people with products ranging from cosmetics to health care equipment according to an MOC statement.
In 2014 alone these companies paid taxes of 5.7 billion yuan and their sales revenue reached 25.1 billion yuan.
The MOC said it will strengthen supervision to help consumption and increase employment.
China issued two regulations on direct selling in 2005 and announced amendments in March 2014 to step up supervision of the business.
In China, companies that sell their own products to consumers (i.e. without going through a distributor or wholesaler) need to obtain the Direct Sales License with the
Tag Archive for China Direct Selling
Hot Business News Today
NHTC Reports Strong Q3 Results
by Ramya Chandrasekaran • • 0 Comments
Natural Health Trends Corp., a direct-selling company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced its financial results for the quarter ended September 30, 2015.
Third Quarter 2015 Financial Highlights
Total revenue increased 154% to $80.8 million, compared to $31.8 million in the third quarter of 2014.
Revenue from the Company’s Hong Kong operations, which represents 94% of total revenue, increased 168% to $75.9 million, compared to $28.3 million in the third quarter of 2014.
Revenue outside of Hong Kong increased 38% to $4.9 million, compared to $3.5 million in the third quarter of 2014.
Operating income increased 171% to $14.8 million, compared to $5.5 million in the third quarter of 2014.
Net income available to common stockholders was $14.5 million, or $1.18 per diluted share, compared
Hot Business News Today
China’s Direct Selling Boom Fuels European Tourism
by Ramya Chandrasekaran • • 0 Comments
Last weekend, 90 buses, filled with 4,500 Chinese tourists, roamed the Netherlands courtesy of Perfect (China) Co. Ltd., a direct sales firm specializing in household and beauty products. It was an ostentatious trip, but nothing compared to the early May tour of France that Tiens, another Chinese direct sales firm specializing in health and beauty sponsored for 6,400 of its representatives. And that was smaller still than the 110 flights chartered in mid-May to take 12,700 Chinese tourists to Thailand, all of whom work for another Chinese direct sales company, Infinitus, specializing in health and beauty products.
Welcome to China’s booming direct sales sector, where revenues have gone from zero to $18 billion in the past decade. It might seem surprising that such an old-fashioned business model — which revolves around people hawking wares to people they already know — is succeeding despite
Hot Business News Today
Infinitus China to Take 12700 People to Thailand
by Ramya Chandrasekaran • • 0 Comments
Direct selling company Infinitus China is set to organize a gigantic tour group of 12,700 people to Thailand, a move that will smash the record set by another Chinese firm which sent 6,400 of its employees on a grand vacation to France earlier this month.
Infinitus will book 110 flights and 400 coaches for the trip, which is estimated to bring to Thailand a tourism income of 600 million baht (US17.89 million), Apple Daily reported Thursday.
The firm, a mainland subsidiary of Hong Kong-based food giant Lee Kum Kee, is said to be arranging the six-day tour of Bangkok and Pattaya as part of a rewards scheme for its employees.
Juthaporn Rerngronasa, head of the Tourism Authority of Thailand, told local media that the Infinitus employees will arrive in batches of 2,000 to 3,000 people from May 10 to