Direct sellers come knocking - MLM In China

MAJOR door-to-door sales companies are stepping up efforts to expand their presence across China in preparation for new direct selling regulations that come into effect in two months.

Herbalife International, one of the five biggest direct selling enterprises in the United States — Avon, Amway, Marykay and Nuskin are the others — will open 30 stores by the end of this year.

Although the new regulations said companies don't have to open retail stores to enter the market, it does require companies to set up service outlets in areas where the company conducts door-to-door sales. The outlets are to cater to customers and provide refund or exchange services.

USANA Acquires Manufacturing Facility in China

USANA Acquires Manufacturing Facility in China: "USANA Health Sciences Inc. (NASDAQ: USNA) today announced that it has purchased for cash a personal care manufacturing facility in China. The experienced local management team will remain in place and the facility features expansion capability. The terms of the transaction were not disclosed.

'This marks a significant first step for our long-term plan of developing the Chinese market,' said USANA President Dave Wentz. 'The recent release of the new regulations that will govern direct selling in China allows us to actively prepare for entry into one of the world's largest direct selling markets.'

The regulations indicate that the new direct selling laws will go into effect on Dec. 1, 2005. USANA's timeline for receiving a direct selling license and obtaining product approvals is uncertain, but could take as long as 12 months."