Research On The Crisis Management Model Of Direct Selling Enterprises Based On Life Cycle Theory

With the promotion of direct selling legislation,direct selling products have gradually entered people's lives and are well known to the public.By the end of 2018,91 enterprises in China had obtained the direct marketing license issued by the Ministry of Commerce,and were approved to carry out direct marketing business in different regions of the country.Among them,there are 33 foreign-funded enterprises and 58 domestic funded enterprises.As direct selling enterprises pay attention to product quality,care about customer experience and reward salespeople heavily,they are more and more favored by traditional cosmetics and health products manufacturers.At the same time,various marketing teams are also actively participating in direct selling companies.By the end of 2018,the Ministry of Commerce has announced 2935 direct selling trainers and 3918000 direct selling employees.The growth and development of direct selling enterprises are accompanied by the continuous crisis of enterprises.There are various types of crisis in direct selling enterprises,mainly involving suspected pyramid selling,false propaganda,exaggerated propaganda and illegal direct selling.Because of its twin relationship with MLM,it is difficult for direct selling to get rid of the adverse effects of its illegal behaviors such as pulling people's heads and charging high entry fees in the public cognition;in the process of its operation,direct selling enterprises are also inevitably used by the bad sales teams to carry out MLM activities with the help of enterprise products or brands.In order to attract more ordinary consumers to join the sales team,the sales team exaggerates the income level,product efficacy,and even pretends that health care products can cure cancer,so as to achieve the goal of high income.Although the domestic direct selling enterprises pay enough attention to the crisis,under the influence of the huge competition pressure in the industry and the dealers' psychology of seeking overnight wealth,the enterprise crisis will continue to appear,even enough to affect the survival of the enterprise.Crisis management has become the bottleneck of the development of direct selling enterprises.From the perspective of crisis life cycle theory,this paper analyzes the common characteristics of the typical cases of direct selling enterprises,summarizes the types,causes and solutions of the crisis,tries to find out the root causes of the crisis of direct selling enterprises,and constructs an effective crisis management model of direct selling enterprises.This paper provides a practical reference for crisis management of this type of enterprises.