Time: January 31, 2002 at 14:00pm (Thursday)
Venue: Public and Business Administration Center, National Chengchi University, Taipei
Sponsor: Direct Selling Research Center (DSRC), National Sun Yat-Sen University
Chair: Prof. Der-Fa Robert Chen, Director of DRSC
Minute: Mr. Chao-Hsiung Wang
Topic ＜1＞: Should the direct selling summit be continue to hold? And, under which structure should it be carrying out?
Chair:
During last year’s first direct selling industry summit, many attended have proposed to organize united welfare activities and received positive feedback, along with contribution and supports by 14 companies. Some participants even suggested convening direct selling industry summit regularly. Today, through this meeting, I’d like to hear everyone’s opinion about this issue? And, if we deem the summit should continue, here are some approaches I would like to provide for your review.
(1) Industry union or main industry national summits (fixed staffs or members) alike. The summit will be conducted in a way that senior executives from significant direct selling companies will come together to communicate and discuss about relevant issues on the development of overall direct selling industry.
(2) Industry Forum (free-for-all). Invite great figures within the direct selling industry to present special relevant topics and share opinions with the participants.
(3) Seminar (free-for-all). Invite experts and scholars to present special topics and share opinions with the participants.
(4) Propagate and communicate through government order (free-for-all). Invite government officials to propagate and share opinions with participants.
(5) Others.
Regarding about the above approaches, we will vote later to determine our final decision. In the meantime, please share your valuable opinion with us.
Director Kuang, Sunpak Co.:
If we follow (1), with its function performed on Fair Trade Commission or industry, direct selling will be augmented onto an industry system, making direct selling summit more valuable. As for 2、3 and 4 Professor Chen mentioned above, we could also discuss them. If we are able to utilize direct selling industry summit to extend direct selling to law and economical industrial behavior, the outcome will be more evident.
President Liu, Melaleuca Co.:
I absolutely agree with Manager Kuang’s view. In order to establish yearly objectives, leaders or senior executives from each company should interact and discuss yearly direction first and later join by officials from Fair Trade Commission and relevant government departments and scholars. Direct selling association and Fair Trade Commission could also form a two-way communication to discuss subjects like Internet marketing. The subjects should be discussed in terms of the methods of law, system and management principles, so that the function of direct selling and level of participation could be strengthened.
President Chen, Binonatural Co.:
Personally I recommend to first systemizing direct selling industry summit in which its representative will be the senior executive of each participated company. Before each summit takes place, senior officers of each company should devise the subject for the discussion in the summit. Any senior executives who are the fixed members and unable to attend the summit may designate others to attend.
Chair:
In recent years, government regulation has constrained the establishment of the direct selling union and also the information perceived by publics on direct selling is limited causing us to encounter many bottlenecks. This is a major obstacle for the development of direct selling business. I therefore hope that we can organize a direct selling summit by consolidating the companies that identify the summit to investigate and discuss those problems. In addition, through the establishment of this organization, we wish to absorb more decent direct selling companies or other interest parties to be our members.
Vice President Lin, Mainyes International Co. Ltd:
The social value of direct selling business globally is yet to be confirmed as it is affected by the negative impact of some past inappropriate behvaiors. I have always wished that there would be an organization similar to the union established, so that any inappropriate behaviors will be restrained and managed. Result from that, the establishment of direct selling summit is indeed very important because it builds a beneficial and competitive environment and also eliminate negative prospect from public.
Voting for the continuation of holding direct selling summit:
The result apparently shows that we agree to continue organizing direct selling summit.
Chair:
Since everyone feels that direct selling summit should exist, we then now need to decide if it should be carried out with fix members or we should issue to every company and adopt free-for all?
Director Kuang, Sunpak Co.:
The participants should be fixed. If anyone is unable to attend, he may designate others to attend. If the participants of every meeting are free-for-all and subject not devised in advance, the discussion may not reflect the real problems underlined the direct selling business.
Chair:
Should members be selected from the companies inclined and the executive officers of each member companies being the representatives? Representatives who are unavailable to attend the summit should designate others to ensure the fix membership system.
Director Kuang, Sunpak Co.:
After names of all fix members are confirmed, may other companies join too?
Chair:
The essence for establishing summit is to broaden our views whereas the establishment of fix membership is to ensure the stability of the members, it does not mean to expel others. After fix membership systems are established, any companies that wish to join is welcomed.
Financial Manager Deng, Sunrider Taiwan Inc., Taiwan Branch:
Basically I agree with the fix membership, however it should be careful not to let it become rigid. Only more companies join us, more information will be received and current problems will be realized. Regarding about the reason behind the less enthusiastic attendance maybe resulted from the fact that usually next meeting time are set in advance but later on conflict with other important events. I therefore suggest that before every meeting takes place, we may conduct a survey in order to find out the appropriate meeting time and increase the numbers of participants.
Chair:
Enlarging members is important to the organization of the summit, we should not expel others. As for the surveys, since currently we do not have fix representatives, we cannot determine the subjects and schedule, we will wait until fix representatives are confirmed. According to the figures provided by Fair Trade Commission, there are 500~600 companies registered, but only 200 companies are in operation, and 60~70 companies exist in market for over one year with annual sales more than 0.1billion. If we are going to mail out letters, we should mail it to everyone or only to those sign up early, example like anyone interested to attend should sign up so that we can arrange the schedule to avoid conflict with other companies’ activities.
Director Kuang, Sunpak Co.:
Two ideas:
1. Focus on companies operating for more than three years because they are well developed in terms of systems and finance.
2. Members should sign up yearly because the requirement is lower which will attract more companies to join, reaching a better result.
Chair:
I sense everyone feels that direct selling summit needs a formal organization, but what kind of organizational structure should it be.
From my view, I think we should have a core unit or group of representatives to promote organizational activities so the strength of this organization will better cohered.
President Chen, Binonatural Company:
Since everyone agrees to have a fix organization for direct selling industry summit, I recommend that professor Chen to first draft the organization articles and provide for us to review. Fundamentally senior executives of every company are allowed to participate the meeting however other companies will not expelled out. The board of directors within the organization would first consider plotting the next topic for discussion and sending to the non-member companies. If they are interested to join, they may attend by filling out some basic information and send them back.
Chair:
Today I would preferred if we could exercise this summit to determine the organization articles in order to follow through later. Should we establish a preparatory committee and the fix membership today and determine if only senior executives of member companies to participate or designate senior officers could attend? Are all companies willing to attend?
If everyone agrees, we should find time to organize a preparatory committee meeting after Chinese New Year. The direct selling industry summit will adopt the first structure-fix membership and it will organize industry forum, propagate through government order and other academic research under the organization of summit. In the future, it will be considered as a regular organization.
Conclusion: Direct selling summit will be applied by fix membership, the detailed articles will be draft by preparatory commissioners, and letter will be sent out to solicit members.
Topic ＜2＞: Should the national direct selling welfare activities be organized this year?
Chair:
The outcome of last year’s united welfare activity was effective and received much positive feedback. It is an important issue for today’s discussion on finding out whether a similar welfare event be conducted this year in order to enhance the overall direct selling image.
Special Assistant Liu, Nuskin Co.:
Public welfare activity should be considered as a cumulative activity. It must be constantly developed and organized in order to accomplish its most value, otherwise it may loss its effectiveness. I suggest that we should continue organizing united welfare activities this year and the details of its extent, capital, target and objective may all be discussed at later times/dates.
Chair:
I presume that Mr. Liu meant to schedule a public welfare activity this year, with the discussion of scope and the parties to donate in the next summit.
We will discuss this issue until the next direct selling industry summit.
Conclusion: Basically we will organize united welfare event this year, and will leave the members of preparatory committee to discuss about the details.
Topic＜3＞: Should we invite relevant Chinese officers or scholars of the direct selling industry to interview Taiwan?
Chair:
Direct selling business was once permitted to operate by the Chinese government but was banned after 1998. After China enters WTO this year, the prohibition is expected to be removed gradually. Presently, the government of Mainland China still objects to the open of direct selling business, therefore the open of direct selling business may not be foreseeing in the near future. If anyone interests to undertake direct selling business in China, he must reorganize his management system in order to adapt to the regulation, like retailing, treating the store seller as company’s employee with fix salary. Through this, the essence of direct selling would then be transformed.
If we wish to increase Chinese government’s understanding about the essence of direct selling, we could consider inviting them to attend our academic symposium.
Marketing Manager Yu, Melaleuca:
In Mainland China, the distinction between the regulations centrally and locally is sometimes blurred and conflicted to each other. The local government is more willingly to the open of direct selling business while the central government prohibits. Under these circumstances, any planned local activities are ineffective. As long as there is no communication being built between Chinese central government and us, it is infeasible to influence Chinese central government through the participation of the symposium.
Chair:
Is it true that if we could obtain the consensus from the foreign trade department of China, we may undertake the business in all provinces?
Market Manager Yu, Melaleuca:
It is not necessary true. The local government may abide the central government’s order in public but operate against the order at the back. Meanwhile, the level of popularity about direct selling business is different for every local government, such as in Dalian City, its city government establishes a heavy policy, while in Kungdong city, the government adopts a light policy.
Conclusion: It is not the right time yet.
Topic <4>: Should we organize in-group to visit Chinese relevant officers or scholars of direct selling business?
Chair:
Does anyone have other opinion about inviting the officers or scholars from Mainland China to interviewing Taiwan? Do you all feel the same about the visit to China?
Executive Vice President Kuo, Chlitina Co.
Personally I think that Chinese government will not permit the operation of direct selling business in a very near future because the organization of direct selling business involves millions of people. In addition, Chinese government still concerns about FalunDafa and loads with heavy pressure. The incomplete regulatory policies may cause disturbance when the market is open.
Director Kuang, Sunpak Co.:
I think we should concentrate the direct selling summit in Taiwan first because its operation in Taiwan still not being affirmed by enormous people. In addition, the interaction between government and society is not quite efficient. We should consider enlarging the direct selling business in Taiwan before we actually invite Chinese government here.
Chair:
I absolutely agree with Manager Kuang’s opinion. Only by strengthening the direct selling business in Taiwan first, could it be compete in other territories. According to Executive Vice President Lin said that the presence of some unlawful direct selling business causes the public being suspicious of our operation, we should act aggressively by promoting the Business Ethic Law. Since everyone already give their consent on the establishment of direct selling summits and the preparatory committee, I assum we should invite the representative from each company to briefly introduce their company in order to ease our communication. (brief introduction)
Discussion:
Which companies are willing to be the preparatory commissioners for the direct selling summits?
Conclusion:
E. Excel International (Taiwan) Inc.
Bionatural Co.
Sunrider Taiwan Inc., Taiwan Branch
Chltina
Nu Skin Taiwan Inc., Taiwan
Taiwan Nefful Co., Ltd
伯葛公司
G.H.K.
Sunpak
MJ Life Enterprises Ltd.
宏錡公司
Melaleuca of Asia Co.Ltd, Taiwan Branch
Amway Taiwan Co., Ltd.
Ve Shin(sun group)
Double Crane
媄豔麗公司
We will schedule a meeting after Chinese New Year.