Yesterday, Nanyang reported that Mesdaq listed INS Bioscience going to leave it direct selling business to venture into ecommerce business to create a portal for herbs product.
Second Board listed Hai-O. Start from chain of retail outlet selling chinese medical product. Venture into direct selling and MLM business. Today, direct selling and MLM business contribute more than half of it revenue and product, become the company core business and money earner.
INS Bioscience however, start from direct selling and MLM business. Last year, the company claim that it OEM business contribute more profit than it direct selling business.
Yesterday, news of the company plan to cease it direct selling business and launch it online herbs portal on 1st July 2007 was reported on Nanyang.
A search on Google show that China Press also reported similar news. However, China Press make a contradict report. It reported that the company already launch the portal in August 2007 and has attracted 1,500 distributors todate. However, the company still showing a loss of RM950,000 on third quarter of 2006.
Nanyang reported that each distributor or franchisee have to pay RM30,000 and would get RM38,000 value of stock in return. However, the company turnover in third quarter 2006 drop from RM23.57 million to RM19.47 million in the corresponding period. Drop 17.4%. The figure doesn't tally? Shouldn't 1,500 new franchisee paying RM30,000 each should get RM45 million?
INS Bioscience wheat grass product get fierce competition from Yigaho. It Insupro forte's bitter gourd product facing competition from OTC low cost product like Main Board listed CCM's Bitter melon and non listed company's Diabegard.
MLM transform to ecommerce is a trend given a lot of MLM company has slowly move to ecommerce.
However, INS Bioscience strategy that required franchisee to pay RM30,000 up front seem contrary to normal reseller or associate that required minimum capital.
This requirement just like recruiting direct selling's stockist that required to pay an up front cost for stock. However, it is not easy for a direct selling company or MLM company to recruit 1,000 to 1,500 stockist nationwide each paying RM30,000. A target to recruit 5,000 to 6,000 by year end seem rather ambitious for the company. Let see whether the company able to do it this round?
Technorati Tag: Biotechnology pharmaceutical Malaysia Health & wellness MLM Direct Selling klse
Second Board listed Hai-O. Start from chain of retail outlet selling chinese medical product. Venture into direct selling and MLM business. Today, direct selling and MLM business contribute more than half of it revenue and product, become the company core business and money earner.
INS Bioscience however, start from direct selling and MLM business. Last year, the company claim that it OEM business contribute more profit than it direct selling business.
Yesterday, news of the company plan to cease it direct selling business and launch it online herbs portal on 1st July 2007 was reported on Nanyang.
A search on Google show that China Press also reported similar news. However, China Press make a contradict report. It reported that the company already launch the portal in August 2007 and has attracted 1,500 distributors todate. However, the company still showing a loss of RM950,000 on third quarter of 2006.
Nanyang reported that each distributor or franchisee have to pay RM30,000 and would get RM38,000 value of stock in return. However, the company turnover in third quarter 2006 drop from RM23.57 million to RM19.47 million in the corresponding period. Drop 17.4%. The figure doesn't tally? Shouldn't 1,500 new franchisee paying RM30,000 each should get RM45 million?
INS Bioscience wheat grass product get fierce competition from Yigaho. It Insupro forte's bitter gourd product facing competition from OTC low cost product like Main Board listed CCM's Bitter melon and non listed company's Diabegard.MLM transform to ecommerce is a trend given a lot of MLM company has slowly move to ecommerce.
However, INS Bioscience strategy that required franchisee to pay RM30,000 up front seem contrary to normal reseller or associate that required minimum capital.
This requirement just like recruiting direct selling's stockist that required to pay an up front cost for stock. However, it is not easy for a direct selling company or MLM company to recruit 1,000 to 1,500 stockist nationwide each paying RM30,000. A target to recruit 5,000 to 6,000 by year end seem rather ambitious for the company. Let see whether the company able to do it this round?
Technorati Tag: Biotechnology pharmaceutical Malaysia Health & wellness MLM Direct Selling klse
