Oriflame China, March 7 alleged breach traced much coaching MLM

Published: 7:14:59 February 27,2014  Views: 22
China Economic Net Beijing February 27 (Reporter Guo Xiaowei February 14, Oriflame Cosmetics Co., Ltd. (referred to as Oriflame released 2013 fourth quarter earnings data: Oriflame fourth quarter 2013 sales declined 1% to euro calculated decreased by 10% to 371.2 million euros. Statistics found that in 2013 Oriflame sales of $ 1.401 billion euros whole. than 2012 of € 1,489,300,000, which fell nearly 6 percent.

Also, due to the constantly changing Oriflame president of China, it also gives Oriflame bring a lot of trouble in the development of China's resignation had been hit .2007 Chen Hailin, 2010, when he was president of Oriflame China area Euler? Adams Rongbo grid switch Mercuri Group, in June 2013, Pierre? Madsen retired Oriflame China, announced the implementation of the president .7 years, the Chinese president three times the coaching change, industry sources have said, 'Obviously, agitated or Oriflame need as soon as possible solve the problem. '

In addition, Oriflame also ran into trouble outside acclimatized .2 March 20, according to the Jinan Daily reported that Oriflame alleged pyramid scheme. Reported that the presence of Oriflame business model, hierarchical structure, such as direct violation of law, there are MLM suspect. Additionally, Previously, several provinces have exposed the existence of a similar pyramid schemes Oriflame, some areas were also seized the public security organs.

China Economic Net reporter call the service hotline Oriflame, the other customer service called 'agency model Oriflame does not exist', and repeatedly stressed that 'we are direct.'

Oriflame performance gradually decline

In 2004, Oriflame official visit in China, according to official information displayed Oriflame 'Oriflame products carefully developed and most preferably suitable for Asian skin hundreds of species, in 2006 for the first time for the China market, where the star product Xue Fu series, that is, developed for the Chinese women body skin degrees Oriflame to bring a gift first Chinese consumers. '

Fair to say that by virtue of the strength of cosmetics, Oriflame early stages of development in China quickly, get the qualification went very smoothly, according to the Commerce Department the direct selling industry information display, Oriflame verification of the record date of June 27, 2007, its direct sales region mainly for Beijing, Guangdong, Fujian and other eight provinces.

Look Oriflame sales last year, according to its official data show that last year the total sales of the four quarters, respectively, 381.3 million euros, 359.7 million euros, 290 million euros and 370 million euros, total sales of 1.401 billion euros degree. its data analysis showed that all the data are in a state of decline.

In addition, according to official data showed Oriflame, its 2012 full-year sales of € 1,489,300,000 degrees. Comparative 2013 data, total sales fell about 6%.

In addition, a number of direct mainland China, according to industry research organization released a report showed that the direct selling industry in the mainland Oriflame's influence and ranking are in a state of gradual decline.

President of China, March 7 coaching change

But compared to the earlier entered China in terms of Amway and Avon, Oriflame has always been that there is a greater change in China's market share, which will result in Oriflame China area repeatedly coaching change.

Early November 2007, President Chen Hailin Oriflame China, said he resigned for personal reasons, is currently undergoing a transition-related matters, the recent frequent travel, at the end (December 31 will officially leave.

It is understood that since January 1, 2008, Oriflame Chinese president will officially take over by Mr. Euler? Adams Wing Borg, president of Indonesia, he had a four-year performance period will be Indonesia's sixth largest Oriflame he told the media revealed plans to achieve results in the next year to China several times now. industry came, Chen Hailin because of performance and management factors and leave.

Did not last long .2010 October, according to foreign media reports, the president Oriflame (China) in Sri Lanka Wing Borg switch Mercuri Group, has left the Oriflame (China). Soon after, Oriflame (China) hung out the new official website CEO Pierre? Madsen's speech.

After just three years, June 20, 2013, Pierre? Madsen announced the official retirement Oriflame (China CEO. Either before the next candidate Oriflame (China CEO's announcement, Mr. Fred will temporarily act as the post.

'Oriflame to break through the current dilemma, at least for a long time to explore, not the later ones will be able to home on.' Direct expert Hu Yuanjiang had said in an interview for Oriflame, finding the most suitable business model, more quickly adapt to the market environment and industry environment, you need at least 3-5 years.

In this case, there are people in the industry as 'acclimatized' to describe the situation of Oriflame.

Repeated exposure alleged pyramid scheme

Not long ago, according to the Jinan Daily reported that the reporter in on the number of direct selling companies to investigate and found Oriflame's business model and the hierarchical structure in some places and as new companies are very similar, there are also allegedly violated state laws place, which once again put Oriflame pushed to the cusp of public opinion.

January 15, one claiming to have been doing for years in Oriflame dealer told reporters that want to become agents Oriflame is very simple, just ID number and ID card can be registered free members. Dealers also reporter describes the conditions become right agent - the value of 98 yuan Job Guide.

In addition, high commission dealers briefed reporters also been questioned, she said that this bonus system called the team in Oriflame commission award.

<< >> Explicit provisions prohibiting pyramid schemes chapter VII, paragraph 2, organizers or operators through the development of staff, asked to pay a fee or subscription product development personnel and other ways to pay fees in disguise, get others to join or development Join qualifications, seek illegal interests, are pyramid schemes. Clearly, the behavior does exist Oriflame MLM suspect.

Inquiry found that exposure of such terms for Oriflame is commonplace.

2009 Shandong Rizhao police check cargo, after investigation, Liu and 14 illegal workers were from Anhui, Yunnan, Jiangsu, Qinghai, Sichuan, Chongqing, Zhejiang, Henan, Inner Mongolia, since 2008, to sell 'Oriflame 'in the name cosmetics, work, etc. Help Contact cheat others to engage in illegal activities sunshine. Liu and 14 illegal workers were detained according to law.

2012, is still in Shandong. Foreshore City police successfully controlled 16 名欧瑞 lotus MLM personnel, involving more than 300 million worth, according to the parties that 'health care is not easy to buy this, the light must pay 3800 yuan entry fee.'

For such events, Ourui Lin has never given any positive response.

'Recently there Meishan Oriflame organizations suspected MLM special someone with a book means to pull people in the street with the purchase and added them to join the organization. Should be the beginning, has not officially popularity in Meishan, please thousand Wan do not believe. 'Not long ago, a lady in Chengdu, Sichuan also told China Economic Net reporter.

arty on, but also meet national quality standards, and to provide consumers with normal service job.

Quanzhou jewelry industry associations 陈其荣 when talking about jewelry OEM production problems, has said publicly, 'the merchant non-manufacturers, not comprehensive checks, when such problems are also very helpless, after all, businesses do not have so much energy in the commodity shelves piece by piece before testing, are generally random inspection, the possibility of quality problems do exist, but does not rule out some of the illegal businesses intentionally false. '

Luk Fook repeated exposure to third parties on the goods quality problems

For consumers, a third-party issue is low on the goods can not be avoided Luk Fook's 'pain.'

According to the Daily News reported in December 2010, Luk Fook Holdings mistakenly purchased a number of fake gold, 3 single transaction of 550 grams Upon inspection, these fake gold gold is only 50% Luk Fook Jewellery Managing Director Luo Tianfu said:. 'This is So far since we were one of the most serious impact. '

Luk Fook Jewellery responsible person said, to identify a group of branches of three single transaction to acquire approximately 550 grams of fake gold, with a total purchase price of HK $ more than 90,000, a loss of approximately HK $ 40,000 and some fake gold after testing, confirmed that the main content Gold accounts for about 50%, about 40% iridium osmium.

Industry sources said some people of unknown origin, printed with '999.9' on the gold jewelry, the district sent Luk Fook jewelry gold shop to sell. Kind of gold jewelry in the subsequent test, gold was discovered at 50% to 90% between .

These two major types of fake gold jewelry 'alloys' and 'sandwich class' Alloy mold manufacturing methods and style are cylindrical beads, square cards, etc., jewelry component containing iridium, zinc, copper and other metal elements;. Sandwich class There are filed mainly flat chain, pearl chain, the surface layer is gold, but the center piece of silver or copper mixed with sand.

suspension system resulted in the first day of trading was light, low turnover is a good thing not a bad thing, the next day, the third day will certainly be traded, which makes the stock slowly up or down, to the market to break to give small and medium- investors ponder opportunities. first day of trading was light afraid, afraid of madness, therefore, should be strictly enforced on the first day price limits.

Reducing the proportion of the net to institutional placement

Under the net to reduce the proportion of institutional placement, the majority of stock in the online purchase, improve the success rate of small investors (to cancel the old shares must be held to the provisions of the placing of new shares), retail investors should also like institutions, first reported purchase quantity (maximum purchase limit amount), signed by the number of shares subject to subscription models, reducing the cost of small investors to subscribe, can also reduce interest income from the issuing company.

Pause stock issue

Some people think that the issue of new shares, allowing part of the old stock holdings, you can increase the market liquidity of shares, listing requirements, but in case the system is not perfect, prone to crazy old shareholders cash situation. Aosai Kang preparing to issue 31 old shareholders cash billion, is a typical example. Consequently, the stock of the issue should be suspended according to the provisions of the former major shareholder transaction processing. suggested that reducing or stopping the stock issuance, the issuer can not reach 25% of the outstanding shares of the listing requirements. actually very easy to solve , to allow its secondary offering.

The main responsibility for the implementation of issuers and intermediaries

Have the main responsibility for the implementation of issuers and intermediaries to promote the responsible parties homing strengthen information disclosure authenticity, accuracy, completeness and timeliness of disclosure of information to improve the quality of the issuer, inhibition of false information, the packaging market, fully revealing there may be risks and decisions that may affect investor information for fraud agencies, should establish complaints and claims of accountability mechanisms, increase penalties, to be deterred by the revocation of business licenses, and other measures Shichangjinru For Issuance Inquiry Quote alliance composed during the series with each other, quotes, market manipulation and other malicious acts, immediately stop quotes qualification and the qualification of the catch.

Actively pursue equity issue carefully registration system

Approval system to a registration system transition from a process of institutional change is not able to complete overnight. Truly implement stock issue registration system may need some time to prepare. Registered in the legal system must be robust, full information disclosure of listed companies and intermediaries The following are more standardized market environment can be implemented. otherwise it will lead to a new market confusion.

Direction point of view, the first to do of going to separate the functions of the Commission change, promote exchanges restructuring. Companies issuing shares and listing the first to review by the Stock Exchange, the stock exchange after the trial, and then submitted to the Commission for review. SFC will issue the company intends to make value judgments is not primarily to examine whether compliance, information disclosure is true, so as to gradually from the substance of the investment value of the audit to review the transitional form of information disclosure, the approval system to promote the transition to a registration system while strengthening information disclosure quality, strengthen corporate governance and internal control system. still need to further improve laws and regulations issued an audit, for example, the current >> << Securities Act of shares issued in the implementation of 'approval system' should be changed at least for the gradual implementation of 'registration system.' registration system can be directly implemented in the OTC market. Specifically, the strategy taken several steps to achieve approval authority delegated to refinance within two years, the right to realize decentralized IPO approval within three to four years.

Enter [Reuters shares it] discussion

en it occurred in this case, a group of industry associations rise, but in the end found that these industry associations are with the government sectoral cooperation, listening instigated by certain sectors, noting that social organizations to undertake these functions should not be appointed by the government to which organization to bear, to bring it up a level playing field.