Source: cri.cn

Liu Mingxiong, vice-president of Amway Greater China, revealed that the company will not open online shops, and does not allow any of its direct salespeople to open such shops.

As e-commerce businesses expand rapidly in China, more companies are choosing the internet as a platform to sell their products. However, Amway China, one of the country’s largest direct sales companies, says it has other considerations.

Liu Mingxiong, vice-president of Amway Greater China, revealed that the company will not open online shops on the country’s largest auction website, Taobao.com, and does not allow any of its direct salespeople to open such shops, because "the sales mode will cause unfair competition among other staff members who focus on direct sales."

"We oppose the new-style mode not because we do not like it," Liu explained. "Amway has been aiming to provide the staff with an equal-footing opportunity to gain additional earnings or to set up their own careers. Therefore, we will not sacrifice their chance to seek temporary profits."

Liu also warned consumers to be cautious about so-called Amway products sold on the internet with 50 percent discount or more, "they are too cheap to be true."

Last year, the sales revenue of Amway China hit 17.6 billion yuan, an increase of 28 percent compared with the year before. The figure makes up 31 percent of Amway’s global sales revenue, making Amway China the company’s largest subsidiary.

The business expansion in China is attributed to the country’s improved laws and regulations concerning direct and pyramid selling since 2005, Liu said.