TOP 10 MLM COMPANIES IN CHINA
Network Marketing has been legal in China since 2005; with few restrictions, Chinese MLM has been selectively implemented. Citizens of China are always famished to use innovative products and earn income by selling some of them in the largest market of China. MLM companies have been trying to overcome China’s prohibitions and developing other methods to market their products in retail stores. In this writing, I will share some details of the Chinese MLM Market and list the Top 10 MLM Companies in China.
Before that, let me brief you about MLM for people who don’t have an idea about it.
WHAT IS MULTI-LEVEL MARKETING?
Multi-Level Marketing (MLM) is a direct selling business method followed by many organizations worldwide, where the company’s sales will be dependent on the distributor for trading them. Multi-Level Marketing is also known as Direct Selling Business and Network Marketing. The factors that affect the growth of an MLM business are;
- Maintaining the quality of the products,
- The size of the market, and organization,
- Efficient training programmes for the representatives.
MLM representatives earn their profit from the sales and the recruitments they make. These recruited members are called ‘Downline‘, and they provide a percentage of bonus for the people who recruited them, called ‘Sponsors‘. This type of business structure can be very alluring, as an opportunity to build your own business without investing much money.
Related: Multi Level Marketing Software
HISTORY OF MLM IN CHINA
MLM Business was illegal in China when many organizations misused it to execute the unlawful Pyramid Scheme. A pyramid scheme is an illegal model. They scam members with fake promises, payments frauds, inadequate services and forcefully make them invest in it rather than supplying products for sales.
The Chinese MLM department studied some of the best Direct Selling Organizations and their sales in China. Now, it is by far one of the largest Multi-Level Marketing hubs around the world, accounting for 2.6 billion USD in revenue, 30% of its worldwide sales, and nearly 15 million distributors. The declining economy in the United States has turned to a positive impact of the consumer wave in China.
TOP 10 MLM COMPANIES IN CHINA
The following list of Top 10 MLM companies in China focused on boosting trades and building a healthy relationship ethically with customers and their distributors. The list is based on the establishment, revenue and product line from the Chinese direct selling sector.
QUANJIAN MLM COMPANY, CHINA
The dietary supplement company Quanjian was founded in 2004. Not only through direct sales, but Quanjian also markets its products through its online E-commerce platforms. However, Shu Yuhui, the founder and chairman of Quanjian, managed to bring in 700 million USD every year as their revenue.
Related: Ecommerce MLM Software
PRO-HEALTH MLM COMPANY, CHINA
The China-based MLM Pro-Health made millions from their Homecare products, Food, Beauty & Cosmetic products. Pro-Health was established in 2007. They also offer a wide range of health-based products from bandages to baby care items and much more. Every household has medical things, so Pro-Health owns a great business opportunity in the market. By the end of 2020, Pro-Health had a revenue of 500 million USD.
ROLEX MLM COMPANY, CHINA
The Rolex is a Chinese MLM Company founded in 2011. The Person-to-Person (P2P) sales of Rolex’s product line includes Cosmetics, Kitchenware, Healthcare & Wellness products. Rolex provides the best quality products and better packaging technology worldwide as a recognized manufacturer. The warehouse of Rolex MLM is located in Beijing, China. Rolex has been actively operating in China for several years and holds 460 Million USD per year.
LONGRICH MLM COMPANY, CHINA
Longrich Multi-Level Marketing company was founded in 1991. It is a Chinese MLM company that trade Healthcare & Beauty products. The company has its research and development department and employs more than 10,000 people. Thousands of Longrich clients serve as distributors worldwide, who can purchase products with member discounts and resale them at market price to earn profit. The Longrich MLM business made around 1 Billion USD in revenue in 2020, with sales in more than 60 countries.
GOLDEN DAYS MLM COMPANY, CHINA
Golden Days is a Chinese MLM Company founded in 1991. The days of gluten-free products are helping Golden Days turn into a profit yielding market. Not only the Gluten-free products, but Golden Days is also famous for its Sesame-seed Snacks and Paleo Bars. Golden Days own a wide range of delicious products bursting with flavours. The company became famous for distributors promoting a healthy lifestyle while making extra income every month. Today, Golden Days owned revenue of 446 Million USD in 2020.
MIKI MLM COMPANY, CHINA
Miki is a Japan-based MLM company that earned its popularity by serving the best quality products in China. Miki was founded in 1996 and recognized as one of the best Multi-Level Marketers in the Personal care & Household products sector. Miki made its mark by selling supplements derived from ‘Prune extracts’ with their household products. With a great customer base in Japan, Miki started expanding slowly to Asian countries like China, Malaysia and Taiwan. Today, Miki MLM Company makes 515 Million USD per year.
HUALIN MLM COMPANY, CHINA
Hualin is a leading Chinese Multi-Level Marketing company founded in 1994. According to the Hong Kong-based news report, the company has gone through some deluded claims from the other competitors in the market. Hualin has been pushing their concept of acid-base balance, claiming that it can regulate the body’s acid-base balance by energizing the human body’s functioning. Hualin products can improve our immunity and resist the effect of certain diseases. Additionally, the company claims that they own 577 Million USD per year in revenue.
AMOREPACIFIC MLM COMPANY, CHINA
Amorepacific is a South Korean-based MLM company that earned its popularity in China with quality products and services. The Amorepacific Skincare brand manufactures and sells Skincare product lines and hold their position in the Top 10 Network Marketing companies on the Direct Sales Network (DSN) list. The Amorepacific preserves its dignity on being the only Cosmetics MLM company in the world to grow and harvest green tea for up to 140 patented product lines. The Amorepacific MLM company claims that they receive 680 million USD per year.
YOFOTO MLM COMPANY, CHINA
Yofoto International is a Chinese MLM organization founded in 2004. Yofoto offers a healthy lifestyle with better career opportunities by marketing and selling their products, which are integrated with traditional Chinese medicine formulas. In 2018, Yofoto partnered with a Canadian-based organization called ‘RepliCel’, which manufactures and sells Orthopaedic technologies to commercialize Cell regeneration, skin rejuvenation, and therapies. The Yofoto MLM declared that they would earn a revenue of 590 million USD in 2020.
YANDI MLM COMPANY, CHINA
Yandi MLM is a Chinese organization headquartered in Zhu-zhou. Yandi focuses on marketing Nutritional Supplements and Cleaning products. Yandi’s marketing methods have been following the Person-to-Person (P2P) campaign since its establishment in 2011. Less than a decade old and under the helm of executive Huang Jialin, the company has managed to land at #30 rank on the DSN (Direct Selling News) list. The Yandi MLM has a revenue of 740 million USD per year.
DIFFERENCE IN LEGIT MLM AND PYRAMID SCHEME
China is steam-rolling into the 21st century as a global economic powerhouse. There are specific fundamental differences between a legit Direct Selling Business and a fraudulent Pyramid Scheme. The requirement is made by MLM representatives to join or to invest in a business, the absence of a return & refund policy, and providing compensation only for the recruitments, not for the sales, are the most common fraudulence signs of an illegal Pyramid Scheme. These fake MLM companies keep few consumers safe, and only those people will be earning profits.
However, A legit Direct Sales Business do not support such malpractice. Direct Selling is a business model which recruits sales promoters to sell products directly to consumers, not to keep recruiting to collect registration fees without making any sales.
FUTURE OF DIRECT SELLING IN CHINA
In recent years, the reports of MLM scandals have piled up in the Chinese Direct Selling world. As a result, the government banned a few brands by acknowledging the fraudulence of those companies. In 2019, only very few companies were approved to conduct direct selling business by the Chinese government. This has restricted the emergence of a great wave of illegal MLM Companies in the business sector. Currently, 48% of Chinese citizens are involved in the Direct Selling business.
Today, instead of the traditional door to door sales formats, network marketers choose digital platforms by adopting the power of social media to maximize reach and minimize obstacles. According to the World Federation of Direct Selling Associations (WFDSA), the average number in the rise of direct sellers is 2.5 million in 2019-20, and it is likely to grow to 8 million by 2025.
Related: Top 10 MLM Companies Canada
CONCLUSION
Chinese MLM business made millions by selling healthy food items, House Products, Beauty and Cosmetic products. After the rise of MLM scandals worldwide in the 90s, the Chinese government protected the consumers from unfair practices in Direct Selling Business. Chinese Direct Selling is more in a controlled form now, making China an excellent hub for Direct Selling Business.
