| Complex current situation of China’s retail formats, the irrational distribution ofmarket regulation slow lag, the immaturity of the industry standard factors have led tothe chaotic price wars of retail industry. Because various retail enterprises want tooccupy more market share, the importance of the model innovation is highlightedonce again. The direct selling industry in China can be described as the curve ofdevelopment, constantly running with China’s national conditions and create a directsales model for direct sales of enterprise development with Chinese characteristics,showing the advantage of its advanced marketing model. This article explore newideas that combine the direct selling industry and retail industry, through the phasegrafting-depth analysis of the direct model of the direct selling industry leader-Amway (China), hoping to give the inspiration and reference to the retail industrywhich involved into crisis.The thesis is divided into four chapters, the first chapter introduces the directmarketing and direct selling industry development status, as highly controversialdirect marketing, many consumers are still unable to distinguish between DirectMarketing and Illegal Pyramid Selling, the first chapter describes the advantages anddisadvantages of direct marketing, direct selling directly to customers, reducing thestorage area and put an end to the bad debt, there is no additional cost from the dealerand the corresponding inventory, which can protect the interests of the Company andthe customer. But due to the direct selling industry’s lack of industry standardsderived from illegal pyramid selling, real direct selling companies profit come fromthe sale of goods, however, illegal pyramid selling institutions rely on the entry fee,training fees, or the first high purchase models to profit. Finally, from the perspectiveof the industry environment to analyze the direct selling industry leader-AmwayCorporation.Chapter II analysis the Amway marketing environment in China, starting with the macro environment and use SWOT to analysis the objective assessment of theadvantages and disadvantages of Amway (China), Amway (China), as a Chinesedirect sales industry leader, has a high degree of social sense of responsibility andbrand awareness. Excessive development of a large marketing team began tohighlight difficult to manage the various risks, individual marketing staff for theirown gain and the behavior of price-cutting sales of Amway products, seriouslydisrupting the majority of marketing staff’s development of fair and equitablecompetition in the market order to disrupt the market price of a unified system of thecompany’s products caused great harm, disrupt the overall interests and long-termdevelopment of the marketing staff. Design SWOT model to summarize theopportunities and threats of Amway (China), and pave the way for the establishmentof the next two chapters.The third chapter focuses on marketing strategy, with the leading multi-brandstrategy; it also takes the brand extension strategy to create the star brand throughthe analysis of brand, product, pricing, channels, marketing. Pricing strategy is theAmway foothold in China is an important marketing strategy. With the summary ofAmway (China) existing direct sales strategy’s strengths and weaknesses, the directselling regulations and prohibiting pyramid schemes in2005is the implementation ofa symbolic turning point in the direct selling industry, Amway (China)’s direct salesdevelopment process of profiling, the characteristics of China’s transition road twistsand turns of side mapping of the entire direct selling industry in China developmentpath.The fourth chapter is the concluding chapter of the entire piece of paper, Amway(China)’s success in China also gradually leads to more and more companiesconcerned about that the success of this landmark is the outcome of China’s nationalconditions perfect combination. The rapid development of anything is bound to thatthere are some hidden dangers facing development bottlenecks, this section details theproblems to be solved in the development of the direct model of Amway(China) andput forward specific recommendations for improvement. Finally grafted on to thesuccessful experience in direct sales model is the bottleneck in the development ofChina’s retail. Through the comparison retail and direct selling channel model and the analysis of both the pros and cons of divergent thinking, it’s expected to be able to putforward practicable retail marketing model innovative approaches. |
