Good podcast overall. However, you might want to have an additional podcast that goes over the scandals (e.g., pyramid schemes) that led the Chinese government to ban direct sales and MLM in the first place. Also, how Amway became successful under this brand with an own-store strategy – a strategy it had to implement in China.

You raise a very good point. The potential for bad product going direct is an issue. And, though skirting the traditional retail channels does have its advantages for suppliers, it also bypasses a key filter that can possibly keep out bad product.

However, I think that this is actually a market advantage for the bigger brands in direct selling, the Amways, Mary Kays, Avons, etc. They have already established good supply chains to ensure product quality … if they can keep those chains linked all the way through their sales people to the consumer, they can continue to establish their brands and their reputation for quality. Of course, it is always possible for an “An-way” to come into the market and try to piggy-back on the brand and sell counterfeit product, but that’s life in the great China market!.

Thanks,

Charles

Podcast: Ding-Dong China’s Calling – [link to post]

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