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12-05-2016, 08:40 PM
We have two threads of discussion here. One is the Boon's projection, on the immediate profit, after a change of "export" to "direct-selling (DS)" model on existing China biz. Another one is the prospect after the DS license.
I don't think there will be a magical jump in company PnL, just by converting the existing China biz, from "export" to "DS" model. Please refer to my previous post.
The "DS model" is like the "Online model" for retail. It is not a sure-win model. It has different cost structure. Warehouse/Retail Outlets expenses, are replaced by commission/promotional expenses. The execution is important. I am cautiously optimistic on the DS model outlook in China, with the success in Taiwan market. On top of that, it is interesting to see the impact of e-commerce.
(not vested, and have studied Amway and Nu Skin model, for a basic understanding of direct selling)
I don't think there will be a magical jump in company PnL, just by converting the existing China biz, from "export" to "DS" model. Please refer to my previous post.
The "DS model" is like the "Online model" for retail. It is not a sure-win model. It has different cost structure. Warehouse/Retail Outlets expenses, are replaced by commission/promotional expenses. The execution is important. I am cautiously optimistic on the DS model outlook in China, with the success in Taiwan market. On top of that, it is interesting to see the impact of e-commerce.
(not vested, and have studied Amway and Nu Skin model, for a basic understanding of direct selling)
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡