Direct selling products are divided into six categories: cosmetics, cleaning products, health care equipment, small kitchen utensils, household appliances and health food. However, Chengde Laojiu has no domestic health food registration certificate, so it is not a health food, and it is not in the category of direct sales products of the Ministry of Commerce. But its business model is basically the same as MLM. If it is not direct selling, it can only be pyramid selling.
MLM refers to the behavior that organizers or operators calculate and pay remuneration to the developed personnel based on their direct or indirect number of personnel or sales performance, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt economic order and affect social stability.
The managers of Hebei Chengde Ruyi Wine Co., Ltd. used internet plus to build the enterprise into an open platform, and then applied the multiplication theory to market development through the sharing model, which also opened the prelude to the transformation from traditional economy to sharing economy.
Only two and a half years after the transformation of the enterprise, more than 4,000 small and micro institutions and 400,000 makers have gathered on the platform of Ruyi Wine Industry, covering all provinces and cities in China except Tibet. The company not only greatly increased the sales of products, but also gained considerable benefits for every maker who participated in the sharing.