In line with global economic trends,
Multi-level Marketing (MLM) companies have shifted their focus from the West
towards Asia and Emerging Markets. Asia’s MLM market is estimated to be the
world’s largest. With Green and “healthy-lifestyle” products poised to become
the next big thing in MLM, do the best days of Asian MLM lie ahead?
Multi-level marketing (MLM), otherwise known
as network marketing, evolved to reach out to customers who were either beyond
the reach of conventional bricks and mortar retailers or who needed to be convinced
face-to-face by someone they trusted to buy pricey, high involvement products. The
world’s most successful MLM firms have been equally successful at two things.
The first is creating products that people want to buy through network sales
rather than other channels. The second is perfecting a process for recruiting,
training and motivating sales representatives. From Avon to Tupperware, and
Tahitian Noni Juice to Diamond Filtration, the reach of multi-level marketing
has been astounding. A well-established
industry in OECD countries like the United States, United Kingdom and
Australia, the industry has evolved and is becoming increasingly hard to
ignore. In 2010, sales figures
Multi-Level Marketing in Asia and Emerging
Markets Encouraged by the success of
multi-level marketing in OECD countries, MLM firms have shifted their focus to
Asia in recent years. Their efforts have paid off. Asia registered USD 37
billion in MLM product sales in 2007, and is now the world’s biggest region for
multi-level marketing3. Trailing behind are North America (USD 32 billion
including Canada), Europe, Africa and the Middle East (USD 27 billion), Central
America, Southern America and the Caribbean (USD 17 billion), and Australia and
the Pacific (USD1.4 billion).
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