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                                                         Minutes of the Meeting                             December 1999

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(1)   Time: 1:30PM ˇV 5:00PM, Dec 19, 1999

(2)    Venue: Taipei

(3)    Attendee:

(4)   Chairman: Director Der-Fa Robert Chen

(5)   Important Conclusion:

1.      The Impact of E-commerce on the Direct Selling Industry

1.      The use of internet brings in both opportunities and threats to the direct selling industry:

1.          Direct selling companies can use the internet to replace human labor to provide more services to the distributors with lower costs.

2.          Direct selling companies need to make huge investment to use the internet to increase more customers but whether it is effective or not is still unknown.

3.          There will be a threat for direct selling companies if consumers can use the internet to search and compare the products and the prices of the products of different direct selling companies and order on-line.

4.          The core competence of direct selling companies is to build up the connection between its high level distributors and its lower level distributors.  The companies need to build up a high loyalty customer base in order to survive in this very competitive market.

2.      The Direct Selling Research Center can invite e-commerce experts to hold an ˇ§e-commerce and direct sellingˇ¨ conference to discuss from both the technology and implementation perspectives the development of the e-commerce and the possible measures the direct selling companies can use.

2.      The Action Plan of the Direct Selling Research Center

1.      The Direct Selling Research Center is the only academic center doing research on the direct selling.  We hope that the center can have training courses of direct selling and issue certificates for those who finish the course.  This way, we can not only improve the level of the direct selling sales people, but also build up the reputation and authority of this industry.

2.      The courses should be held in the northern, middle and southern part of Taiwan and have an examination system; only those who pass the exam can get the certificate.  It can help certify the professional capability of the people who get the certificate.

3.      The process of getting the certificate itself is a kind of encouragement.  Distributors will feel that they are recognized and it will also help the whole direct selling industry.

4.      Most distributors pay more attention to their short-term sales, but less attention to their career planning.  The center can have activities that discuss the career planning of the distributors.

5.      The annual action plan of the center is recognized by all of us.  As long as the activities are well planned and executed, the direct selling people will be very happy to attend.

6.      The activities should try not to be held at the end of the month.

3.      The Fund Raising for the Direct Selling Research Center

1.      Everyone recognizes the function of this center and is willing to help the development of the center.  If the center can make clear its plan for the whole year, the funds will automatically come in..

2.      The center should speak out its short, middle, and long term development plan and explain to companies its benefits.  After that, use the influence of the consultants.  This is the best way to raise funds.

3.      The scale of each company is different, so the fund raising ability is different.  The center should have a donation feedback system and let each company donate according its own ability.

4.      The center can have a few research projects listing its fund requirement for direct selling companies to sponsor.  When the result of the projects is published, the sponsors name will also be listed.

5.      The center should be careful about the source of the funds.  If it is from a company with bad reputation, it can affect the reputation of the center also.

 

4.      Others

1.      The center will increase the content of its website and hopefully this web site will become the portal for the direct selling companies.  If any direct selling companies have a web site, please let the center know its address so the center can post it on the centerˇ¦s website.  Anyone who surfs the website of the center can then link directly to the website of the direct selling companies.

2.      The list of the consultants will be published on the centerˇ¦s website.

3.      Please send your companies publications to the center to help increase the volume of the centerˇ¦s library.

4.      In addition to posting the information of the activities of the center, please encourage your companyˇ¦s employee and distributors to attend these activities.

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