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Melaleuca creates a consumer direct Marketing system

美乐家 打造消费者直购系统

2019/09/27 Companies
The Author: Knowledge Economy
Melaleuca creates a consumer direct Marketing system


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

据《知识经济杂志》20197月报道,2019年美乐家(中国)年会上的视频演讲中,美乐家创办人范德士谈到:“过去三年,美乐家的成长达到了令人惊叹的速度,每月都有超过10万名顾客在美乐家购物。”美乐家全球业绩的成长,很大一部分来源于其中国市场的快速发展。尤其是在2018年以来,中国直销行业发展一度低迷沮丧的情况下,美乐家(中国)业绩依然能够保持业绩增长。


那么,美乐家(中国)是如何做到的?


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。

所谓消费者直购系统,是指美乐家的产品不是经由制造商、广告商或者分销商等传统渠道抵达消费者,而直接面对终端消费者进行销售。由美乐家直接采购、制造与运送产品至消费者手中。这省去了美乐家在中间商环节的费用支出,为其“消费回馈、购物返利”提供了支撑。


美乐家的产品线如今已覆盖了家庭清洁、营养健康食品、身体保养、化妆护肤等多种生活日用品品类。在20196月推出26款新品后美乐家(中国)为消费者提供的产品已超过了380款,可以满足消费者对产品种类的多方面需求。


另一方面,成为美乐家会员的门槛相对较低,属于小额报单,这为美乐家接触到更多消费者提供了广阔的空间。而且,报单的产品,必须用于会员自己消费,不能对外销售。这种引导消费型的全员自购方式,为美乐家带来了庞大的消费市场。


根据近几年美乐家(中国)年会发布的数据显示,2016年至2018年,其中国市场的纯消费顾客占比分别为为87%88.83%84.68%;在行业市场低迷的情况下,美乐家仍保持较高的纯消费顾客占比。


美乐家把大量的心思花在照顾纯消费者身上,通过优化产品、推出优惠政策等措施,提高会员复购率,让会员多快好省地购买产品。


值得一提的是,美乐家(中国)在直购系统中制定了最高2000元的消费限额制度,鼓励会员理性、计划性消费和持续消费,以避免会员囤货、不理性消费,从而有效保证了美乐家的市场秩序。业内人士表示,这种理念值得很多直销企业学习。


一言以蔽之,美乐家在直销模式上打造的消费者直购系统,以低门槛、高复购率的全员自购方式形成庞大消费市场,在整个行业产生差异化竞争效力;而且,其辅以消费限额手段,某种程度上也去除了中国直销行业投机性或投资性目的过强的因素。


2019530日,美乐家在上海市外资大项目集中签约仪式上,启动了新的投资项目——美乐家将在上海市奉贤区投资建立日化生产基地,这是目前美乐家总部在海外最大的日化生产基地。


十六年来,中国市场已经成为美乐家最重要的国际市场。2018年,许玮正式掌舵美乐家(中国)、成为第一位中国本土市场培养起来的职业经理人,由此可见美乐家对中国市场的重视。


“美乐家(中国)已经持续成长了10年,会员人数增长了28倍。”2019年年会上,许玮公布了截至201812月美乐家在中国的会员增长情况。

Keyword: Melaleuca,business model