Sun I Err

Has Sunrider changed it's name to Sun I Er?  This is the signboard of one of the franchised store located in a Mall cum Office building in Jalan Raja Chulan, Kuala Lumpur. This store sells fast food side by side with Sunrider's product. The fast food is doing fairly good business, especially from the lunch-time crowd from surrounding offices.But do not see any customer buying Sunrider's product from the store.

This  franschised store must have been warned for Promoting Fast food instead of Health Food.
Perhaps, already removed as a Franchised store but continue to sell Sunrider's product.

Sun I Err sounds appropriate for the management of the company. This highly reputable and prosperous company has been in MLM (Multi-Level Marketing) business for more than twenty-five years selling herbal food supplement based on the Chinese philosophy of body regeneration. The company has superior products but failed to regenerate itself. The founder, Chen Tei-Fu and Tsai Oi-lin, a Taiwanese couple, made millions or maybe billions, from the business. But sadly, they were unable to regenerate the company after the business reached the saturation point. Or rather too complacent to regenerate the business but easier to "exploit" the independent distributors by revising the marketing plan(commission scheme) too frequently. 

From the year 2004 to 2007 the company changed the marketing plan so frequently that the independent distributors could no longer follow and comprehend the scheme. This also created misunderstanding among the lower rank distributors. Doubts and suspicion were built up and confidence in this MLM business lost. The founders have erred in many ways in this aspect of the business operation. 

Sunrider changed its business model from MLM to franchised retail store in 2008. The company wanted to emulate the AVON model but failed miserably in Malaysia and Singapore.  

Besides China, where the company failed to secured a nation-wide MLM licence to operate, most Sunrider businesses in other countries still operating on MLM model.

Cosway also emulated the Avon model but is very sucessful  in Malaysia.

Sunrider's new business model, in Malaysia and Singapore,  initially opened and operated a few retail stores of their own but the one in Lot 10 shopping centre is already closed. Two of the company's owned stores are in IOI Citymall, Putrajaya and Sunway Pyramid, Petaling Jaya,  are just like showrooms. One can sit down and observe for hours. There is hardly any visitor/customer walking into the stores.

In South Korea, their products are sold in the departmental store at  Shinsegae Department Stores.

This store at Level 2 Lot 10 Shopping Mall in Bukit Bintang, Kuala Lumpur,
has already shut down.

A few of the franchised stores in Malaysia and Singapore have already closed down, The noticeable one that opened 7 days a week in Salak South Garden, Kuala Lumpur has closed down. In Singapore, only one out of the seven franchised stores remain opened. The rest of the retail stores belongs to the company. 

In Malaysia, a  few of the surviving franchised stores are struggling to stay afloat. Many are doing supplementary business to keep their  commitments  and hoping to get through  this tough economic downturn period.

This store located at IOI Citymall, Putrajaya.

Franchised store at Giant, Bandar Kinrara

In most of the MLM marketing plans(commission scheme), independent distributors must constantly maintain personal sales volume as well as personal group volume. This goes strongly against their preaching of Financial Freedom and Passive income in MLM business model. I have blogged earlier that these are myths of the MLM business. After years of hard works and tireless energy being put into the business by the independent distributors, the MLM company shifted  the goal post. When the independent distributors  begin to taste the "flavour" of some "Financial Freedom" and "Passive Income" the MLM company would revise the marketing plan (commission scheme). This will ensure the company's business can continue to grow and their high-rank independent distributor must continue to work as hard as ever to maintain the same level of income. 

To put it in simple words, there is no such thing as Financial Freedom and Passive Income. This is just a DREAM being preached and brainwashed into the independent MLM distributors' mind.  All MLM distributors are always at the MERCY of the MLM company. No personal/personal group sales, no income. This is the fundamental principle of MLM company. The MLM company pays commission to distributors based entirely on the monthly sales volume/value only. There is no such thing as ROYALTY income. This is a myths or a belief created by some MLM companies and their high-rank distributors.  If the MLM company has ZERO sales for the Month, the company pays ZERO commission to its distributors for the month. 

The more ethical ones like Amway, Hai-O, Shaklee, Herbalife  are more compassionate with the independent distributors but still tweet their marketing plan occasionally.

If one is a newcomer to the MLM business, do not be misled by the high-rank distributors (also called High Pins) with the DREAM.  You can only dream forever. The Reality is:-

NO HARDWORK NO COMMSSION (income).
NO FINANCIAL FREEDOM.
NO PASSIVE INCOME.