Transcript Fashion Retail Management

Fashion Retail
Management
Presented By: Cai Yun Jing & Eileen Loh
Content
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Objectives
 Introduction to Multilevel Marketing
 MLM VS Network Marketing
 MLM VS Pyramid
 Advantages & Disadvantages
 Traditional Vs MLM
 MLM in Singapore
 Interview
Objectives
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To understand Multilevel Marketing
Multilevel Marketing Vs Network Marketing
Multilevel Marketing VS Pyramid Scheme
Advantages & Disadvantages of Multilevel
Marketing
Traditional Business VS Multilevel Marketing
Multilevel Marketing in Singapore
Introduction to Multilevel
Marketing
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A system for selling goods through a network of
distributors rather then conventional advertising.
Earn money not only from your own sales, but from
those you bring into and from those they bring in.
The distributors that you sign up with are called your
downline.
The distributor that originally recruited you is called
your upline
Some successful well-known MLM businesses
include Amway, NuSkin, Mary Kay Cosmetics, Avon,
and Tupperware
MLM VS Network Marketing
MLM
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Only distributors who have
reached a leadership level
are contracted directly with
the company.
They buys from the leader at
a slightly higher price, which
results in a wholesale profit
for the leader.
The company pays bonuses
to the leader and the leader
redistributes to the
distributors below
Network Marketing
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Everyone who signs up is
contracted directly to the
company.
Purchase products directly
from the company and
receive their bonus directly
from the company.
The arrangement is closer to
franchising than MLM.
MLM VS Pyramid
MLM
Pyramid
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Legal
Based on teaching other to help
them succeed.
Involve moving products from
the producer to the consumer.
Consumer can purchase
products without getting
involved in MLM; conversely,
those in MLM do not have to
purchase the products.
Those who join the programme
later can be successful than
those who joined before them.
Multilevel company gain
assorted tax benefits from the
government.
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Illegal
Based on getting in first, so one
can sign up others and
encourage them so.
Involves moving money from
people on the bottom to people
on top.
Everyone has to join the
pyramid to participate.
Those who join the programme
later make much less and
eventually lose money.
Regarded as a fraud by the
government, participants are
thus subject to fines and
punishment.
Advantages & Disadvantages
Advantages
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Reduced capital investment
Reduced advertising
expenditures
High repeat sales
High earning potential
Tax advantages
No franchise fees to pay
Opportunity to make new
friends
Disadvantages
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Longer start up time
Less control
More paperwork
Long hours
Demand on your work time
by network members
Action of other MLM
members reflect on you
Necessity of staying active in
company so as not to lose
network
Traditional Vs MLM
Traditional
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It employs a few people to
do a lot of work and
produce large revenues.
You have to learn certain
sales techniques and be
good at closing sales
You can claw your way up
the ladder, keeping all your
creative ideas to yourself
for fear that someone else
will beat you to the top of
the company.
MLM
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It recruits many people to
work and sell a small amount
of volume each.
You find product that you
love and share the results or
provide samples to the
people you know.
You give them your creative
ideas and hope that they
beat you to the top position
in your company as you earn
a percentage of their
volume. (Subjected to
different company’s plan)
MLM in Singapore
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In 1973 the Multilevel Marketing and Pyramid Selling
was ban through the (Prohibition) Act.
 In 2000, the Act was revised to allow for certain
exclusions to the ban.
 “So long as a scheme earns revenues not primarily
by recruiting additional members, but through
legitimate selling or leasing of products, we should
allow that business to go on as usual.” said by Tang
Guan Seng, senior parliamentary secretary for Trade
and Industry.
Interview
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Name: Zoey Kwa
Position: Part time Distributor
Company: Sathelyne International Co Ltd that
carries Bel’Air, a bio-tech aromatherapy.
Time: 8 months
Member Fee: $60 for membership plus newsletters
for a year.
Training: on-job training locally and overseas.
Job Experience: Get to meet a lot of people, gain
knowledge of business skill, personal development
Bibliography
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Successful Network Marketing for the 21st Century
By Rod Nichols
Build Your Own Network Sales Business
By Gregory Kishel & Patricia Kishel
The Graduate
(A monthly subscription of the National University of
Singapore Society)
http://sbinfocanada.about.com/cs/marketing/a/MLMpy
ramid.htm
http://sbinfocanada.about.com/cs/marketing/g/mlm.ht
m