Securing a direct selling licence is only the first regulatory hurdle. Aviance need to register all food supplement and cosmetic products with the Drug Control Bureau before the products can be offered for sale.
Product registration looks simple but is shrouded with mysteries. Probably, only a limited range of products, mainly home care products, would be available upon the launch.
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Website: http://www.bpfk.gov.my/
After the BPFK approval, Aviance need to affix the hologram sticker on every product item. This is only available from a company, Meditag, belonging to an ex- Director General of the Ministry of Health.
Knowing Unilever's straightforward and no nonsense policy, Malaysia can be a big obstacle to operate a highly regulated direct selling business. On the plus side for the company is that Malaysian are gullible and there is a huge market for direct selling.
Until I have evaluated the Marketing Plan and the business model of their Malaysian operation, no comment at this point in time.
A traditional FMCG company with more than 100 years history moving into network marketing is something puzzling. Although they have a successful operation in Thailand, network marketing is a very strange business. The success of one country need not replicate to another country. The saying goes, "The grass looks greener on the other side"
I have been with Unilever and also worked for a direct selling company. I was also an ex-Amway distributor.
So, I have seen the conventional business and the two sides of direct selling business. Which is a better business model? Until you have tried it, you never know.
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3 comments:
I was given the pitch from a member.it was full of crap, they said that this will drive the sales for unilever from 55b to 110b, the CEO fully supported this and the biggest selling point is that they are going to china. I challenge them to proof their claim that CEO stated this, they showed me a picture if the CEO with the Malaysian boss. I reviewed the CEO statement from unilever uk and found no reference to such a claim. It was just waffle produced to sugarcoat the deal.
I seriously think that the gave a lot of crap to push the buy
obviously u din look hard enough ...
"Unilever just launched its Compass Vision. It calls for our global company to double in size over the next 10 years whilst we reduce the impact on the environment."
>> if u want the glass to be half empty ... voila! so it is :)
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