According to the Knowledge Economy, July 2019, in the video speech delivered at the 2019 Melaleuca (China) Annual Meeting, Frank VanderSloot, founder of Melaleuca said, "In the past three years, the growth of Melaleuca has reached an amazing speed, with over 100,000 customers shop at Melaleuca every month." The growth of Melaleuca's global performance is largely due to the rapid development of its Chinese market. Especially since 2018, when the development of China's direct selling industry was once depressed, the performance of Melaleuca (China) has been still able to maintain its growth.
How did Melaleuca (China) make it?
The Consumer Direct Marketing System (CDM) created by Melaleuca provides a new possibility and paradigm for China's direct selling industry.
The so-called consumer direct marketing system refers to the fact that the products of Melaleuca are sold directly to end consumers instead of reaching consumers through traditional channels such as manufacturers, advertisers or distributors. Melaleuca purchases, manufactures and ships their products directly to consumers, which saves the expense in the intermediary link, and provides support for “consumer feedback and shopping rebates”.
Melaleuca's product line now covers a wide range of daily necessities such as household cleaning, nutritious health foods, body care, and skin care. After launching 26 new products in June 2019, Melaleuca (China) has provided more than 380 products to consumers, which can satisfy consumers' various needs for product categories.
What is more, the threshold for becoming a Melaleuca member is relatively low, which is a small purchase, which enhances the chance for Melaleuca to reach more consumers. Moreover, the products of the order must be used by the members themselves and cannot be sold to the outside market. This consumer-oriented and self-purchasing method has brought a huge consumer market to Melaleuca.
According to the data released by the Melaleuca (China) annual meeting in recent years, from 2016 to 2018, the proportion of pure consumers in the Chinese market was respectively 87%, 88.83% and 84.68%. In the case of the industry downturn, Melaleuca still maintains a high proportion of private-use customers.
Melaleuca spends a lot of thoughts on caring for private-use consumers, improving the membership repurchase rate by optimizing products and introducing preferential policies, so that members can purchase products more quickly at a lower price.
It is worth mentioning that Melaleuca (China) has has formulated a consumption quota system of up to 2000 yuan in the direct purchase system, which encourages members to make rational, planned and continuous consumption, so as to avoid members from stocking up and making irrational consumption, thus effectively ensuring Melaleuca's market order. According to industry insiders, this is a highly referential concept that worth learning for many other direct selling companies.
In a word, the consumer direct Marketing system established by Melaleuca in the direct sales model has formed a huge consumer market with a low threshold and high repurchase rate, and has differentiated competition effectiveness in the entire industry. Besides, by implementing the consumption quota system, speculative or investment-oriented purposes in China's direct selling industry are removed to some extent.
On May 30, 2019, Melaleuca launched a new investment project at the Signing Ceremony of Big Foreign Invested Projects in Shanghai. Melaleuca will invest in the establishment of a daily chemical production base in Fengxian District of Shanghai, which is currently the largest overseas headquarter of Melaleuca.
Over the past 16 years, China has become the most important international market for Melaleuca. In 2018, Xu Wei officially took the helm of Melaleuc (China) and became the first professional manager trained in the Chinese domestic market, which shows that Melaleuca attaches great importance to the Chinese market.
“Melaleuca (China) has continued to grow for 10 years, and the number of members has increased by 28 times.” At the 2019 annual meeting, Xu Wei announced the growth of Melaleuca's membership in China as of December 2018.
The Chinese Source:美乐家 打造消费者直购系统
美乐家打造的消费者直购系统（CDM，Consumer Direct Marketing），为中国直销行业提供了一种新的可能性和范式。
On September 19, 2019, Herbalife announced a strategic partnership with Chinese Internet giant Tencent on digital transformation to fully launch the digital transformation of the company's business in China. After the transformation, Herbalife China will become a company that drives online and offline full-value chain distribution channels and is driven by user demand.
At present, digital transformation has become a significant strategy for Herbalife's business development in China, which will enable Herbalife marketers to serve customers more accurately. “Focus on customer value” is the core and foundation of Herbalife's digital transformation. Herbalife will use Tencent's ecosystem and cutting-edge technology to enable customers to reach out to products through more channels, improving customer experience, enhancing customer loyalty, empowering marketers through better customer insights, and ultimately offer consumers with a better service. Under the digital transformation plan, Herbalife is expected to launch online personal-store tools in the fourth quarter of this year.
Recently, "Internet +" has penetrated into every corner of life, and the digital economy generated by "Internet +" contains tremendous momentum to promote economic development. Digital transformation has become an important development direction for many industries.
Looking forward to the future, with the in-depth implementation of the digital transformation strategy, Herbalife will continue to deepen the Chinese market, adhering to the long-term commitment to the Chinese market, and continue to provide scientifically-based, reliable nutritional products as well as high-quality and honest service to Chinese consumers. Utilizing its accumulated global business experience and advantages in profession , Herbalife is striving to create more social values and contribute to the implementation of the “Healthy China” strategy.
The Chinese Source:
At the brand event held in September 2019, NU SKIN announced that the " NU SKIN China Children's Heart Disease Fund" had raised more than 130 million yuan, helping over 10,000 impoverished children with congenital heart disease.
As the earliest multinational company focusing on the group of children with congenital heart disease, NU SKIN have been adhering to “the power of goodness”,which is considered as their mission. In 2008, NU SKIN established the New China Children's Heart Disease Fund, and planned to raise 10 million yuan in 10 years,funding the medical treatment and prior screening for poor children with congenital heart disease, as well as professional medical training and research. It is worth mentioning that due to the great effort that have been paid during the last 11 years, the total amount of funds raised by the project has exceeded 130 million yuan, 10 times as the original plan. Till now, the frequency of rescue operation that is operated has been growing from one in every three days to five in every day at present, and the number of children who have been rescued has exceeded 10,000. It is understood that the project has formed a complete rescue chain for pre-screening, charity treatment, volunteer service and medical training.
The Chinese Source:
Guo Mu, President of Herbalife China, donated to Beijing Sports University Education Foundation in check
On September 10, 2019, Herbalife teamed up with Beijing Sport University to establish the "Herbalife Ice and Snow Sports Development Fund". Herbalife will donate 9.05 million yuan for campus popularization of ice hockey and nutrition diet research for winter sports.
Leaders of relevant departments attended the ceremony，include Dr. John Agwunobi, who is the Co-President and Chief Health Nutrition Officer of Herbalife International; Dr. Zheng Qunyi ,who is the Chairman of Herbalife China; Mr. Guo Mu ,who is the President of Herbalife China;Mr. Xing Shangjie, who is the Deputy Secretary of the Party Committee of Beijing Sport University ;Ms. Wang Chunlu,who is the Executive Dean of Chinese Hockey Sports Institute of Beijing Sport University and the deputy secretary-general of Chinese Ice Hockey Association. Herbalife was also officially awarded the title of “Chinese Ice Hockey Nutrition Guidance Unit” by the Chinese Ice Hockey Association.
Photo of guests present
The Chinese Source:
康宝莱国际联席总裁兼首席健康营养官John Agwunobi 博士、康宝莱中国区董事长郑群怡博士、康宝莱中国区总裁郭木先生、北京体育大学党委副书记邢尚杰先生、北京体育大学中国冰球运动学院执行院长、中国冰球协会副秘书长王春露女士及相关部门领导出席了活动仪式。康宝莱也正式被中国冰球协会授予“中国冰球运动营养指导单位”的称号。