Last month, when I went to the nearby Amway store to buy some albumen powder for my mother in law, I found the store was out of business, the brand logo is peeling off, seems it’s been some times.
I always hold a dim view for this company because of their culture and business model, so I googled some information on the internet about Amway. it turns out that Chinese government is kind of against the Amway, not in a very public way, but put more strict regulation on their business model.
we all know pyramid scheme fraud (http://www.beijinghangout.com/following-business/)is widely ridden in China by the covering of health product , Every time in KFC, Macdonald or Starbucks, you merely can find the someone pitching something and depicting a great blueprint in a very aggressive way. That’s the typical scene we call selling Amway (A derogatory term in Mandarin )
In some suburb village, the economic of all the village people is basically counting on the pyramid scheme fraud, therefore, even the police can do little about them, because police can not arrest all the people. So police just turn a blind eye to them in most time.
Backing to Amway, for years, they did their business in this special way of direct selling, in practice, which usually have the similar fraud pattern with the pyramid scheme fraud, such as endless meeting, slogan, I simply think it is just a kind of brainwash or propaganda, all the sellers of Amway I have met would have wired and unnatural enthusiasm to me, which made me very uncomfortable.
As Chinese government will blow out the rising trend of pyramid scheme fraud in these years to keep the community or society running smoothly, Amway may become the official target on the table, which actually do have the real product in the selling cycle, while most of the Chinese company just keep running by recurring (cheating)new members.
In a long run, I don’t think this giant can still be running in the grey areas of the law, given the fact of more strict regulation and supervision. Also young people are more open minded for the information than their elder generation.
Actually I have no idea why so many people are involved in pyramid fraud in China, which, I think, is probably one of the successful reason for Amway over years in China market, it’s time to pay off, Can Amway survive?