Network Marketing

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By Mark Schaub and David Hong  King & Wood Mallesons’ Corporate & Securities group

US network marketing companies like Herbalife, Nu Skin and Usana Health Sciences have been brutally reminded that a successful China story can quickly move from being a strength to a vulnerability depending upon the mood that prevails in China.

The recent multi-level marketing (“MLM”) crackdown in China coupled with a joint announcement by several PRC authorities launching a number of investigations which have led to a tailspin in the share price of major international MLM companies that have a large exposure to China.
Continue Reading China Crackdown – How Does it Impact International MLMs?

By Mark Schaub, Atticus Zhao and David Hong King & Wood Mallesons’ Corporate & Securities group

schaub_mChina is the promised land for many international Network Marketing companies.

China has what Network Marketing companies thrive on: consumers – 1.4 billion of them; a fast-growing middle class of over 300 million – interested in upmarket goods but also open to opportunities; and finally, an exploding market appetite for Network Marketing-friendly products – dietary supplements, cosmetics and homeware are all experiencing double digit growth rates.
Continue Reading A Castle Built on Sand: Challenges and Opportunities for Network Marketing in China