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Amway China in the news
#1
Some great articles on Amway China -

Amway to invest $15m for business expansion in China
The Amway way
Amway meets challenge in Chinese market

An interesting comment in the second article -

Quote:Type in "Amway" in China's most popular search engine, Baidu, or in Chinese Google, and most of the results are about its charitable activities.

what a contrast!
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#2
Superb articles, thanks. I liked Steve Van Andel's pointed remark about some companies pretending to be direct sellers but actually having a pyramid selling structure, and how hard it can be to tell the difference. That is a big piece of what's behind the changes in the NA business model, and according to well-placed IBOAI people, it IS a "new business model" being deployed in NA, not just an enhanced compensation plan. The goal here is to create a strong point of differentiation by putting retail sales to non-IBO customers on an equal plane with the network building piece, regardless of how anyone wants to parse out "the letter of the law" permissibility in the current NA Business Compendium.
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#3
Interesting point.

Ignoring the legality, ethics, rules, or even just whether its profitbale and makes business sense - What effect does an increased focus on retail customers have on perceptions and reputation?
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#4
The answer is right there in your question. Bridgett was pretty much on target in her posts on the other thread with you and TB2IBO. When you bury the PUBLIC question and perception of legitimacy of the business with a surfeit of non-IBO retail customers and retail profits, that in itself becomes the definitive testimony to all the perceptions issues on the table. Not to mention the fact that, as "legal" as it may be for you to consider IBOs and non-IBOs as equivalent end-users and therefore legitimate "retail" customers, the Corp is not willing to accept that as the status quo anymore. As a business model, it has proved to be a failure.

The closest parallel that comes to mind, and it's not perfect, was when Apple was at its lowest ebb 10-12 years ago. They had a good piece of (but were largely limited to) the elementary school education market on the low end and corporate graphics departments on the high end. It wasn't until they broke out as a company with mass market consumer-oriented products -- iPod, iPhone and now revamped MacBooks -- that's when their brand perception started rising to where it is now -- #1 Most Admired Brand in America. And that should be Amway's goal too.
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#5
rdknyvr Wrote:The answer is right there in your question.


I already know what I think the answer is. I just thought it was worth posing the question Smile

rdknyvr Wrote:Bridgett was pretty much on target in her posts on the other thread with you and TB2IBO.


Do I get this right - you agree with the Bridgett's assertion that having a focus on increasing volume and profit margins, ie PV, is a major cause of Amway's north american struggles?

Sorry, I don't see it.

rdknyvr Wrote:When you bury the PUBLIC question and perception of legitimacy of the business with a surfeit of non-IBO retail customers and retail profits, that in itself becomes the definitive testimony to all the perceptions issues on the table.


I agree, but that has nothing to do with whether you're focussed on PV or not. It has to do with how you're focussed on obtaining PV.

rdknyvr Wrote:Not to mention the fact that, as "legal" as it may be for you to consider IBOs and non-IBOs as equivalent end-users and therefore legitimate "retail" customers,


They're legitimate, but they're not equivalent. And perhaps this shines light on the heart of this "disagreement" ... which is probably more a misunderstanding than disagreement. For any given IBO there is more money available through wholesaling, ie the income potential from building a network far exceeds the income potential from simply retailing - but there is more profit available through retail customers, ie the margins are highers.

A big piece of a small pie or a small piece of a big pie?

I suspect that both you and Bridgett interpret myself and TB2IBO talking about "building a network" as meaning a network of self consumers. I for one mean no such thing. We build networks of consumers and retailers. The income potential from building such a network far exceeds the income potential from focusing on ones own personal retailing, so hence network building deserves a degree of priority.

rdknyvr Wrote:the Corp is not willing to accept that as the status quo anymore. As a business model, it has proved to be a failure.


I wouldn't consider it a failure, but as you know I'm a big fan of a bigger focusing on developing a retail client base for active IBOs. I still fail to see how one can possible blame having a focus on increasing ones business volume (PV) as somehow being a bad thing.

Quote:The closest parallel that comes to mind, and it's not perfect, was when Apple was at its lowest ebb 10-12 years ago. They had a good piece of (but were largely limited to) the elementary school education market on the low end and corporate graphics departments on the high end. It wasn't until they broke out as a company with mass market consumer-oriented products -- iPod, iPhone and now revamped MacBooks -- that's when their brand perception started rising to where it is now -- #1 Most Admired Brand in America. And that should be Amway's goal too.

I agree. The question is how to do it. Apple did it with a breakout product (iPod). The corp asked for ideas in this area on OZ quite a few months back and there weren't a lot of ideas forthcoming.

Me, I want cheap personalised nutritional status testing. It's a product that's needed and it points the way to a consumable we market, much like Gensona but more directly marketable and understandable. Pharmenex/NuSkin have had a lot of success with their biophotonic scanner which tests carotenoid levels. I've been hunting for an affordable way of monitoring blood iron levels and it simply doesn't exist. Significant numbers of people have iron deficiency. Imagine if we could test them and show them the before and after results. What about D deficiency, a major issue, particular in winter? Or EFA levels? etc etc.

That's what I want Smile

I also have a great iPod like idea, but requires $$$$$ to develop and doesn't really fit into network marketing. If anyone has a few hundred thousand they'd care to invest, drop me a line Smile
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#6
Well you know what I have proposed -- Personalized Health, and from what I see in your idea, conceptually we're on the same wavelength. As for Bridgett, I think you must be "hearing" her differently than I am. Someday the three of us will have to have a long dinner together somewhere as I think we're in agreement on the core of it -- depending on which set of posts we're talking about, and on which day of the week. :clapping:
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#7
I have a response via email from Bridget that I've asked her to post so I can reply here. I think it pretty much confirms what I said above - I suspect we're talking about different things using the same words so debating at cross-purposes.
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