MULTI-LEVEL MARKETING SET TO GROW

Malaysia is poised to be one of the largest multi-level marketing (MLM) countries in Asia, with expected revenue of RM8 billion in 2020.

India-based IT company Tech Mahindra Ltd vice-president and head of Asean Ram Ramachandran said MLM is a fast growth industry with many local companies spreading well beyond Malaysia.

“When we first ventured into Malaysia in 2001, we found a unique niche in its MLM segment which actually took us by surprise.

“When we entered the market via doing work with some global multinational corporations, which are big in MLM here in Malaysia and elsewhere, we figured out that Malaysia serves as a unique position on two perspectives – its large consumers of MLM and its position in IT,” he told reporters at Tech Mahindra’s media luncheon in Kuala Lumpur recently.

He said as an IT company, Tech Mahindra is focusing on the empowerment of the MLM players through legacy modernisation.

“Malaysian MLM companies currently have outdated systems and are still lagging in digital enterprise.

“The product of tomorrow will be sold through mobile and social media in the future. Word of mouth is more effective than only direct selling. The model has changed completely.

This new model comes with the need for new technology. Malaysia is poised as a good business for us in this segment,” he added.

Two Malaysian companies are ranked among the top global MLM companies – Cosway Corp and DXN Holdings Bhd – according to an online network marketing portal, NetworkMarketingCentral. com.

The online portal said as at February 2013, Cosway is ranked 27th with DXN at the 28th spot with annual sales of US$433 million (RM1.43 billion) and US$420 million respectively.

At the top of the ranking was American-based Avon Products Inc and Amway with annual sales of US$11.3 billion and US$10.9 billion respectively.

Other than the US and European markets, India, China, South Korea, Malaysia, Indonesia and the Philippines are currently leading the Asian MLM segment in terms of revenue.

According to a merger and acquisition special-purpose vehicle, LeadAll Investments Ltd, the total turnover from Malaysia’s MLM sector has grown to RM3.48 billion in 2010 compared with RM3 billion recorded in 2003.

According to the World Federation of Direct Selling Associations, Malaysian MLM segment retail sales for 2012 increased 7% year-on-year (YoY) to US$4.67 billion. Another leading MLM country, India, grew 22.6% YoY in the same year to US$1.05 billion in terms of sales.

Meanwhile, it was previously reported that MLM is likely to benefit from an inflationary environment arising from the Goods and Service Tax (GST) and subsidy rationalisation programme.

Kenanga Investment Bank Bhd analyst Lawrence Yeo Eng Chien attributes this to the increased involvement by the lower middle-income group with MLM activities, thus providing them with higher return on spending as well as additional side-income.

He said given the weaker outlook in the broader consumer sector, it expects the investor’s interest to gradually shift towards the under-appreciated MLM sub-sector.

It anticipates the MLM segment to continue to deliver decent earnings growth where this will be achieved through continuous effort to enhance product mix, all year-long campaigns and promotions, and also to continue expanding new market channels via more distributors/ member recruitment, an earlier report by The Malaysian Reserve quoted Yeo as saying.

He said the attractive dividend yields offered by MLM companies could be another eye- catcher for investors.

Comments

  1. says

    Dost, MALAYSIA Me MLM grow hone se Ham ko Kiya Milega?E Sab Faltu Bat He. R.C.M Ek MLM Nehi He, E ek PARATMA KE DWARA BANAYA HUA TOFA he.Jisko Mera Bat Acha Nehi Lagta,Jao Kiska team tode,jute bhane se Jode, Lalchse Kisiko Chino, Logko Gumraho Karo, Jute Bade Bat karo,Alag concept me kam karo,khud ki swarth kelie Team ko udhar idhar karke Barbad karo.Dost REAL R.C.M suru Hochuka. Achi tarase Iski Samjo. Jay R.C.M. Mob-09937538512

  2. harjinder singh says

    veer ji is nu bahut dhian nal padie is plan ke bare me aap ki kiya rai hai ki sab se nichla distibuter jab kam kare us ko jiyda rupees aana chaheiye jaisa ki niche diye plan me dikh raha hi ehi plan ko thoda dyan se padhie agar sach me rcm ke dwara ARTHIK AZADI ABHIYAN chalane ke bare soch rahe to pls read it

    khud ko bv ka 10% aur jintne logo ki parposal dalta hai un ki sale ka 10% is se aage10000 to 19999———————– 1%
    20000 to 39999 —————————-2%
    40000 to 69999—————————- 3%
    70000 to 114999—————————- 4%
    115000 to 169999————————— 6%
    170000 to 259999 —————————8%
    260000 to 349999————————— 10%
    3500000 ton upar————————— 12%
    maan lijea tumare a leg me 110000bv
    b lef me 60000bv
    aur tumari sale 2000bv
    totle business 172000bv ka hua
    172000 ka 8% slab se———– 13760rs com bna
    a leg 11000 ka——- 4%ki slab se——— 4400rs
    bleg 60000 ka——– 3% ki slab se ——1800rs hua a aur
    b ka com——— 4400+1800=6200
    aur tumara net com 13760-6200=7560
    +tumare 20 parposal ka 10% se=2000
    +tumari2000 ki sale ka 10% se =200
    TOTAL = 9760 is se aage 8%roylti 5% tec bouns a leg me 3500000bv aur b lg me 115000bv ka business hota hai to roylty ka cheak bhi 17400 rs banta hai ek roylty achevar k bhi kam se kam 30 parposel to honge us ki sale ka 10% se 3000rs aur roylty achevar ki apni 2000bv ki sale ka 640rs total 17400+3000+640=21040rs bana is plan pe jarur vichar karen agar is plan se sehmat ho to is plan ko lagoo karane ki kosis karen kion ki yeh plan nichle distibuter ke liye fidymand rahega aur leader logo ke com me bhi koi khas farak nhi padega is plan ke saath jo distibutar network nhi karna chahta wobhi apna rashan free karne ke chakkar me 20 logo ko join kra kar un ki sale ki jimewari le hi lega agar harek distibuter aisa karta hai to bisness bhi badega kiya sach me aisa plan nahi hona chaheiy agar nahi to kiyon.agar aap is plan se sehmat ho to is ke bare me up line ke saath discus karen

    REPLY

  3. says

    JAY RCM DOSTON,
    Abhi sabhi senior sathion ko ye baat samajhana chahiye ki marketing PLAN me niche balon ko Income na janese system chalana kaphi muskil hota hai. kebal jabardasti chalana padta hai. Bache hui Purane Log kitne din aur sangharsh Karenge?… plz write comments on this matter.minimum-15% for 2500BV..

    Baleswar,Odisha- 9040962212.

  4. says

    TECHNICAL BONUS
    300000 — 300000 — 2%
    500000 — 500000 – 3%
    1000000 –1000000 – 3.5%
    20L – 20L – 4%
    50L – 50L – 4.5%
    1 CR – 1 CR – 5%
    2 cr – 2 Cr – 5.25%
    5 cr – 5 cr – 5.5 %
    10cr – 10 cr – 5.75%
    25 cr – 25 cr – 6 %

    *** one can open third leg after qualifing Technical Bonus.
    plz think about this plan.kyon ki market me abhi bahut sare PRODUCT base new income plan lekar Naya D.S or PUC balon ko ATTACK kartehen,our hum in logon ko INCOME nehi de pa rahe hain…..

  5. says

    JAY RCM.
    ye proposed plan kuch Bade leaderon ko sayad pasand nehi ayay hoga. Lekin me hakiqat batana chahata hon. pichle 1 saal me 1000 new D.S mere team me samil hue. inme se 50 hi kharidari karte hain. Kyon in kuch PUC phataphat khul te hain our phataphat baand ho ta hai. our Naya sathi 5/6 mahina 1000/ karke kharid karte hain our ek bhi paise Bank khate me nahi aate hain.( below 500/).Our purane RCM distributor me se 80% chood choke hain.(Loyalty Club). To kisko leke hum apna sapna pura karenge. kya mahine me 30 din idhar udhar bhagte rahenge ? Naya Marketing plan ko ek Saal ho gaya. Joining bhi free. Product bhi available Hai.Govt ki Guide line bhi hai ? To System kitne tejise chalata hai aap logon ko pata hai….
    is PLAN debate ho na chahiye. our ek do mahine ke andar SUDHAR ho na chahiye, nehi to itna bada MISSION byartha ho jayega.

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