Youshana is suspected of illegal multi-level direct sales in the Chinese market by using Yingying

The direct selling industry is surging.

Yingying, a wholly-owned subsidiary of NYSE: USNA, a listed company on the New York Stock Exchange, plays the bridgehead role of youshana in China's health care market through direct sales. However, questions about the alleged pyramid schemes of ushana on the Internet are endless. The salary system of its cellular rewards allows dealers to increase their income through continuous development and deprecation.

In addition, in order to attract new members, exaggerate the prospect of direct selling in the industry, and exaggerate the product description of youshana, which has become a common method for some direct selling teams of Yingying.

In contrast, the performance of ushana in the Asia-Pacific region is growing, and the company's development has shifted to a multi-level direct selling market that is not permitted by Chinese law.

Curve entry

Ushana was founded in 1992 and entered the Chinese market in 2010 by acquiring the licensed enterprise Ying.

As early as 2006 ago, ushana was already interested in applying for a direct sales license in China, however, the implementation of the single-tier direct sales model in China and the absence of non-performing business records within five years still discouraged ushana, which has been developing overseas at multiple levels. Youshana was previously accused of pyramid selling for a multi-level direct sales model in the Chinese market. As early as the Chinese government's one-size-fits-all direct sales model was listed by the government as a blacklist of prohibited Chinese enterprises.

In August 2010, yushana injected $62.7 million into the overseas parent company of Yinying (China) daily necessities company, indirectly holding China Yinying. The latter just obtained a direct sales license issued by the Ministry of Commerce of China before January 1, July. In this way, ushana indirectly obtained a direct sales license in the Chinese market.

A Shanghai youshana dealer told the China Business News reporter that before the merger of Ying, because of the lack of a Chinese direct sales license, the mainland dealers of youshana can only submit a ticket in Hong Kong, which is inconvenient, there are also legal risks. The news of the merger and acquisition of Ying is undoubtedly a good news for mainland youshana dealers who have been in a bad reputation. They do not have to worry about being accused of pyramid schemes and can start direct sales in an upright manner.

The above-mentioned youshana dealers told reporters that after the merger, the mainland members who joined Hong Kong youshana were asked to translate to the direct selling system of Yinying. It is understood that the number of mainland Chinese members reporting in Hong Kong is 100,000. In the face of the reset performance, the dealer chose to withdraw from the direct selling industry, however, they still choose to use traditional channels to sell the products of ushana in the Chinese market.

Between 100,000 members and the huge Chinese market, ushana chose the Chinese market, that is, using the direct sales system of Yingying to expand the Chinese market, this decision also led to the loss of a large number of Chinese members of the original Hong Kong direct sales system, significantly reducing the performance of the Hong Kong market.

However, the decline in Hong Kong's performance was offset by the dramatic growth in China's performance. According to the "2013 China direct selling Enterprise Performance Report" jointly published by Helun international direct selling Research Center, a third-party data agency, in 2013, yingying's performance increased from 2012 RMB in 0.2 billion to 2013 RMB in 1 billion.

According to industry analysis, this is due to the introduction of a series of integrated policies on the Chinese market by youshana and Yinying. For example, the global integration of the bonus system and the policy of ushana to promote the entry of mainland dealers in Hong Kong into baby care not only stimulate the strong promotion of the original baby care dealers in the market, at the same time, the original dealers attached to the Hong Kong market of ushana turned to Ying, which played the role of "a needle of heart" for the growth of Ying's market in 2013.

Fake Gold plating

Behind the rapid growth of performance, the violation risks reflected by youshana and Yinying in the direct sales process began to appear.

Xie Hong (not his real name), a direct sales staff from Shandong who once worked in the Yingying direct sales team, told reporters that after being a member of youshana, he is often asked to go to a meeting, sometimes online video conferences. In addition to introducing products and health knowledge, the most important part of the conference is the advantages of youshana, and how to use the advantages of youshana's enterprise and bonus system to recommend more members to join the conference.

Xie Hong told reporters that ushana repeatedly mentioned a book "North America Nutrition Evaluation Guide" in the publicity. Its author MacWilliams is suspicious. According to the world's largest encyclopedia and the Canadian Parliament website, this person's educational background is tourism, communication, and art and culture, not written in the book.

In addition, it was often publicized at the conference that Dr. wzana, the founder of ushana, received the 2007 Einstein Award to honor Dr. wzana's outstanding dedication to life science research. However, according to Wikipedia, he won the 2007 Einstein award as "freze-studant" and his research direction is "chemistry and molecular nanometer technology ", the Einstein Award is awarded to only one scientist each year.

Ushana also promoted that its products were included in the American pharmacopoeia. However, ushana is certified as "PDR", which is a Medical Guide for American physicians. It is a commercial publication and a lot of data comes directly from pharmaceutical manufacturers. The true abbreviation of the American pharmacopoeia should be USP, which is an authoritative institution that formulates statutory public medical and health care product standards. Its standards are cited by many countries.

Xie Hong told reporters that, in addition to these, the operational risks of ushana itself were not mentioned in China. The founders of ushana, Dr. Wass, have been selling their shares of ushana since January 1, 2008. His son also sold out during the same period. The top five shareholders of ushana did not have Dr. Wass; ushana's sales in the United States, Canada and Mexico declined steadily from 2008 to 2010. Since its launch in 1992, ushana has not yet obtained an organic production license in the United States.

Perhaps it is because the North America region is getting worse and worse that ushana puts all the bets on the Chinese market. With almost no investment in upgrading production lines or purchasing new equipment at its U. S. Headquarters, the number shown in its financial statement is only enough for service costs, R & D funds from the U.S. R & D department are almost negligible.

Xie Hong told reporters that all of his family are eating the secrets of ushana? Kang product, not long ago he found that he was online to recommend him the use of the product is eight times the recommended use of the product specification, was aware of its online use exaggerated.

Later, Xie Hong checked the information of ushana on the internet and found that he was exaggerated or imaginary in his previous training. Then he withdrew from Yingying direct sales.

Bonus temptation

The temptation to attract many Chinese people to join ushana is clearly its most attractive cellular bonus system, a bilateral balance system, this allows members to establish a balanced deprecation between the left and right sides of the business organization.

At Xie Hong's suggestion, our reporter joined a QQ group named "terry" system as an applicant to join Yingying direct sales, this group is a group established by some direct sales teams in Shenzhen.

Ushana adopts the design concept of "business center", that is, to pay commissions to members based on sales, and does not limit the number of layers that members can earn commissions. You can also set up offline through personal sponsors and set up group sales based on the sales.

According to the youshana bonus system issued by A member to reporters, the commission of youshana is calculated based on balanced sales and distributed once A week. That is to say, the sales of each side of the business center of member A are not equal, the system calculates the Commission on one side with low group sales. The remaining commission for any branch (up to 5000 points per branch, equivalent to 1 USD per minute) is accumulated for use next week.

To start the three centers, you can activate the service by subscribing to the 400-point product in one or eight weeks after you join the service. In this case, member A can become A platinum navigator, the benefit of platinum pilots is that they only need to build a balanced branch under two business centers, but can earn commissions from three business centers.

When the business center of member A has reached the highest level (that is, both sides of the business center have obtained 5000 group sales in A week, including current and previous sales ), youshana will issue A "re-join certificate" to member. This certificate allows Member A to add A new business center to their offline organization at any time. If you want to activate A business center using "add to certificate", member A must subscribe to the youshana product equivalent to 150 points of personal sales when submitting the certificate.

Once the number of leading business centers reaches 1, you can be promoted to a gold director, and you can enjoy the leader's dividend of $140. According to the number of leading business centers, there are also Ruby directors, Emerald directors, Diamond directors, 1 star diamond directors, 2 star diamond directors, 3 Star diamond directors, 4 Star diamond directors, and 5 star diamond directors. From $140 of gold directors to $6300 of the leader bonus of a 5-Star Diamond director, revenue increases in an ascending distribution.

The attractive bonus system allows many people to enter the baby care team. A member told reporters that she was a fashion designer a year ago. She had grown into a platinum navigator in her team after she joined the Ying team with her friend's invitation.

However, these members did not realize that they were engaged in direct selling, and they have already violated the "anti-pyramid sales regulations" promulgated by the state in 2005. As Ying's staff claimed, ushana's multi-level direct sales was originally intended to sell products, not to attract people.

According to China's "anti-pyramid scheme regulations", which began in November 2005, pyramid scheme refers to the organizer or operator's development personnel, calculate and pay compensation for the person to be developed based on the number of persons directly or indirectly developed or the sales performance, the developer may also be required to obtain illegal interests, disrupt economic order, and affect social stability by paying a certain fee.

In response to the cell-type bonus system of the baby, our reporter called the phone number on the official website of the baby USANA. The staff of the other party told reporters in an understate that, "At present, not all domestic direct selling enterprises are developing in a multi-level direct selling mode. Why can't Yinying?"