Multi-level marketing flourishes during the pandemic
Despite the COVID-19 pandemic’s disruptive impact on retail and consumption, multi-level marketing (MLM) activities have been blossoming, with steady improvements in quality and earning growing trust from customers.
The world’s economy is still on the depression trend caused by COVID-19, most of all sectors and businesses are trying to survive and adapt to the change. Of this, service and retail, which are at the terminal of a value chain, suffer a lot of challenges caused by social distancing, and freeze all business operation.
Most of all retailers confirmed that purchase power and revenue have dropped sharply due to the change of customers’ behaviors, the lack of capital, and the interruption of supply chains. These are all challenges that retailers are facing, because of the COVID-19 hit.
According to S&P Global Market Intelligence, the provider of multi-asset class and real-time data, research, news, and analytics, as of July 2020, there were 40 retailers announcing for bankruptcy in the year with some huge loans.
In Vietnam, retail and consumption service revenue used to decrease by over 4% (in the first four and five months of the year), almost 1% in the first half of the year, and reported some light increase at 1.3% in the first ten months, but if excluding the price increase factor, it reduced by 3%-5% in every month (while it used to raise by about 10% on-year).
Thereby, according to the Business Registration Management Agency (under the Ministry of Planning and Investment), the number of enterprises in wholesale and retail sector waiting for dissolution in the first seven months is the most (8,100) compared to other sectors.
MLM developing sustainably
However, of these, MLM is one of the markets that suffer less impact from the pandemic with the forecasts of maintaining two-digit growth, like the significant growth in the 2015-2019 period, and some MLM companies are still expanding.
Total revenue of the five leading companies, including Amway Vietnam, Herbalife Vietnam, New Image Vietnam, Nu Skin, and Oriflame Vietnam in the first half of the year is VND5.6 trillion (US$243.5 million).
As one of the leading MLM companies in Vietnam, Amway Vietnam is always the pioneer of the market by new products and services, and always interested in paying more for Amway Business Owners even in the pandemic.
This November, the company has released its new Core Plus+ bonus payment programme in Mega Day 2020, offering far more support than the current policy, with expectations to more profit at a shorter timeline for Amway Business Owners (ABOs) at all levels, based on customer loyalty and sustainable business development.
Beginning ABOs can earn income from their very first orders;
Developing ABOs can get more profit faster, motivating them to reach higher targets;
Leading ABOs will continue receiving attractive incomes for their wide and established networks.
Mega Day 2020 is the largest event of Amway Vietnam, which is organised in international standards regarding angles, imagines, technologies, and implementation to provide new experiences and discussion on nutrition, beauty, sports to customers.
Huynh Thien Trieu, general manager at Amway Vietnam said: “Mega Day 2020 is the place of meeting of customers, distributors, and the company, to share experiences and promote the sustainable and long-term development of Amway in Vietnam. We hope that the program will be spirit for people, who are looking for a chance of startup. So the Core Plus+ will be the foundation for businesses to develop a younger and stronger team in future.”
Despite a lot of difficulties and challenges that the pandemic impacts to the economy in general, Amway Corporation has poured around US$500 million globally into digital transformation to improve interaction and connection of customers and distributors through its experience centre, where provides information and consultancy related to Amway products, as well as community-based programs.
