Amway

Once-barred Amway becomes booming business in China

The Wall Street diary/March 12, 2003
By Leslie Chang

Beijing -- On a freeze morning, shoppers line up outside a shop here(predicate) ready to dash in the moment it opens for business. Their quarry: washup liquid, toothpaste and new(prenominal) home and personal items made by Amway Corp.

I first learned about Amway in 1994 when a admirer introduced it to me, but of course I prefer to buy in the stores, says Zhang Hui, a middle-age woman who works at a opinion factory and is planning to spend about $40 this shop trip. Its more trustworthy that way.

The store -- and about 100 other Amway outlets across China -- is part of a strategy the caller has used to bounce back from the business-world equivalent of a terminal sentence: Its long quantify sales model, which relies on independent sales representatives selling door to door and deriving income from their recruits sales, was declared extralegal five years ago by a Chinese government directive that lumped direct sellers like Amway with illegal gain schemes.

Never take for granted that people will hear your business model, says Eva Cheng, chairman of Amway (China) Co. Ltd. You need to be in militant communication mode all the time.





Toward that end, the company began building tightlipped connections to government officials. At the same time, Amway made highly ocular changes to its sales physical process. As a result, with government approval, it racked up $700 trillion in sales here last year, almost quatern times what they were in front the ban. Today, China is the companys No. 4 commercialise world-wide, with China profits funding all its expansions here.

But a close look at Amway in China before and after the direct-sales ban indicates its changes havent altered the fundamentals of its sales operation here all that much -- government edicts and new stores notwithstanding.

From the time it opened a factory in Guangzhou in 1995, Amway grew apace in China. Its...If you want to get a full essay, sanctify it on our website: Orderessay



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