Daodao Network NewsAccording to the "2022 Report on the Development Status of China's Direct Selling Enterprises" released by Knowledge Economy magazine, a rough statistics were made on the performance of 89 licensed direct selling companies in 2023. The results show that the performance of 89 companies in the Chinese market totals about 110 billion yuan, compared with 100 billion yuan in 2022**10%. This good news will undoubtedly inject a dose of strength into the direct selling industry, bringing more confidence and hope to the direct selling market in 2024.
Note: Since most direct selling companies have not publicly announced their corporate performance, the above statistics are only for reference in the industry, and the specific performance of the enterprise should be obtained from the relevant enterprises. With the advent of the post-epidemic era in 2023, people's health awareness has promoted the growth of the health food market, according to the "Blue Book of China's Nutrition and Health Food Industry" jointly released by CIC Insight Consulting and Beijing Dama Youhua New ** Platform, the scale of China's nutrition and health food industry has reached 588.5 billion yuan in 2022, and the industry scale is expected to exceed 800 billion yuan in 2027. The huge potential hidden behind it is easier for direct selling enterprises that already have innate advantages and are more focused on the development of health food to enter the game, which will drive the development of direct sales performance.
In addition, many direct selling companies are actively adjusting their business strategies and continuously improving their market competitiveness. Among them, the most typical one is led by Amway, after a period of challenges and changes, it will finally achieve a "counterattack" of continuous performance growth for three years in 2023. Looking back at Amway's strategic layout, it can be found that it is mainly deeply engaged in the big health track, and has built a complete industrial chain "from seed to finished product" through the differentiated operation of its sub-brand Amway Nutrilite. At the same time, it has established a community model led by direct sales personnel to optimize business transformation, highly integrated online and offline healthy life communities, learned health knowledge with consumers, practiced a healthy lifestyle, and led the online direct sales model to a new height.
Looking at the performance of China's direct sales in 2023, it is the result of the efforts of most direct enterprises to seek innovation. Counting the history of direct selling, traditional direct selling initially established an efficient sales model by virtue of "eliminating middlemen to make price differences", reducing turnover costs and providing consumers with personalized 1v1 services. However, with the rise of the e-commerce industry, the business logic of traditional direct selling no longer has a unique advantage. For example, the first e-commerce platforms (**JD.com, Pinduoduo, etc.), as well as the most popular live streaming in recent years, have had a great impact on traditional direct selling enterprises. First, the low-price competition between e-commerce platforms makes it difficult for traditional direct sales to be competitive; Second, in the context of the pursuit of the "fast economy era" and "Internet celebrity economy", commodity information and transaction methods have become more transparent and fast, and the new form of live broadcast can interact with consumers in real time faster. In this context, the performance of the traditional direct selling industry has been challenging for many years and has not been able to meet the expected levels. However, this "dilemma" will gradually weaken with the arrival of industry performance growth in 2023, which on the one hand also means that direct selling has ushered in new development opportunities.
With the in-depth development of the digital era and the rapid advancement of AI technology, modern tools under large language models such as ChatGPT and SORA have gradually entered daily life, bringing earth-shaking changes to related industries. At the same time, in the context of the gradual rejuvenation of consumer groups after the epidemic, the public's demand for health food and health products is getting higher and higher, the industry scale has huge potential, and the booming blue ocean market provides unlimited business opportunities and challenges for entrepreneurs. In addition, the revision of the "Regulations on the Administration of Direct Selling" has been launched, which has laid the foundation for the further development of the direct selling industry. Nowadays, under the new economy and the new normal, products, channels, business opportunities and other aspects are impacting the direct selling industry. Therefore, direct selling enterprises must also keep pace with the times, keep up with the trend of the times, use cutting-edge technologies such as artificial intelligence and big data analysis to improve sales efficiency, optimize user experience, achieve deep integration of online and offline, expand diversified sales channels and improve service levels, so as to cope with the highly competitive market environment, so as to achieve long-term sustainable development.