Factual Concepts - Dr.Charles King

NETWORK MARKETING:
A GLOBAL PERSPECTIVE
Positioning QNET
V-Indonesia 2012
Theme: I am M.A.D.
(Making a Difference)
Dr. Charles W. King

The Focus of this Session…

BUILD YOUR
BELIEF SYSTEM
IN NETWORK MARKETING

Presentation Dr. Charles King, V-Indonesia 2012

The Central Theme:

In Decade 2013-2023
Network Marketing will
move into an
“AGE OF KNOWLEDGE”
About…


AGE OF KNOWLEDGE

• A STRONG BELIEF SYSTEM Regarding the Credibility of the
Network Marketing Industry

• In-Depth Knowledge of the GENERIC NETWORK MARKETING
PROCESS OF RELATIONSHIP MARKETING

• A PASSION FOR AND KNOWLEDGE ABOUT the Company’s
PRODUCTS AND SERVICES

• A Comprehensive Understanding of the Company’s
– UNIQUE MARKET POSITIONING STRATEGY
– INTERNAL POLICIES AND PROCEDURES


Presentation Outline

• Network Marketing: A Global Perspective
• The Movement Toward “Entrepreneurism” World
Wide
• The Rise of Developing Countries: Decade 2013-
2023
• Positioning of QI—QNET in the the Evolving World
View


DIRECT SELLING: A Global View

Direct Selling is:

• A $153.7 Billion (US$) Industry Worldwide (WFDSA—
2011)

• Involving Over 91.5 Million Distributors Worldwide
(WFDSA—2011)

• 21 Countries Do Over $1 Billion (US$) in Direct Sales
Annually


The “Billion Dollar +” Countries in Direct Selling:
A Global Analysis 2011*

Country US Retail Dollars Sales People
(Billions) (Millions)

United States $29.9 15.6
Japan $23.9 3.4
Korea $12.9 4.2
Brazil $12.0 2.8
Mexico $6.3 2.2

France $5.1 0.5
*WFDSA Statistics Report, June, 2012



Germany $3.7 0.3
Russia $3.6 4.1
Italy $3.4 0.4
Malaysia $2.9 7.4
Venezuela $2.9 1.0
Taiwan 2.8 4.7


Country
•
US Retail Dollars Sales People

Canada $2.2 0.7
Thailand $2.1 15.6
Colombia (LA) $2.0 1.2
United Kingdom $1.9 0.4
Argentina $1.6 0.6




Turkey $1.2 1.2
South Africa $1.2 1.4
Peru $1.2 0.4
Indonesia $1.0 8.2
TOTAL GLOBAL $153.7 91.5


Direct Selling: A Regional Analysis 2011

Country % Sales % Sales People by
by Region Region
Asia/ Pacific 36.7% 51.6%
Africa/ Middle East 0.8% N/A
US/ Canada 33.2% 26.5%
Sou/ Cen America 15.5% 9.9%
Western Europe 9.5% 2.5%
Cen/ East Europe 4.3% 8.5%
TOTAL GLOBAL 100.0% 100.0%

“Entrepreneur” and “Entrepreneurship”...

derived from the French

word “entreprende” which

means “TO UNDERTAKE...”


“Home Based Business”: A Definition— Going Solo

• Any Enterprise Where the Principal Administrative
Activities

• Take Place in an Individual’s Personal Residence


“Home Based Business” Statistics

• “Home Based Business” is a $427 Billion a Year Industry
• 150 Million People in North America
• Involve 34.3—36.6 Million home based businesses
• An estimated 8,500 new jobs created daily by Home
Based Businesses—the “NEW MIDDLE CLASS” Economic
Engine


United States “Home Based Business” Statistics

• 70% of “Home-Based Businesses” Succeed for at Least 3
Years vs. 29% of “Non-Home Based Ventures”
• 12% of All Households Operate a “Home- Based Business”
• Forecast in 2013-2023: Over 50% of All Households Will
Operate a “Home-Based Business”
• 48% of Operators are College Graduates


“Home Based Business”: Advantages

• Flexible Time Schedule

• Combine Family/Work

• “Home Office” Tax Deductions

• Independence/Self Determination


Major Daily Challenges in a “Home-Based Business”

• Marketing and Selling for Cash Flow

• Time Management

• Financial Management/Book Keeping

• Minimizing Overhead

• Managing Multiple Responsibilities


The “Home Based Business” Movement Needs a
“How to do it”…”Step-by-Step”…
Operating Model…

Network Marketing Can Provide That “How-to-do-it”
Structure…


PRESENTATION OUTLINE

• Network Marketing: A global Perspective
• The Movement Toward “Entrepreneurism” World
Wide
• The Rise of Developing Countries: Decade 2013-
2023
• Positioning of QI—QNET in the the Evolving World
View


“The Rise of the Rest”

• United States Annual Growth – 2-3 %
• Developing Countries – 10-15 %
• American Companies Relocating in Developing Countries
• Evolution of World Power: United States -- ”The” Super
Power
• New World: United States—A Power China, India, Brazil—
New Powers
• Global Direct Selling Changing


CONCEPT # 4: Major Population Centers

Country Population
India 1.220 Billion
China 1.340 Billion
Africa 1.038 Billion
Arab World (Arab League) 358 Million
Latin America 583 Million
TOTAL ESTMATED 4.539 Billion


Major Global Growth: The Outlook*

Global Developing Markets
• 20%- 30% Middle/ Upper Middle Class

Population
• 908 Million- 1.362 Billion

Almost Population for either India or China
*United Nations Estimates-2011


QNET Market Sales Distributed By Region--2011
Country Retail Sales QNET Sales
% by Region % by Region

Asia/ Pacific 36.7% 53%
Southeast Asia 19%
Central Asia 19%
South Asia 15%
Africa/ Middle East 0.8% 37%
US/ Canada 33.2% N/A
Sou/ Cen America 15.5% N/A

Europe 13.8% 10%

TOTAL GLOBAL 100.0% 100.0%


Target Marketing the Arab World: Some Profile Data

• Average Per Capita GDP: $ 5,563 US $
• 9th Largest Global Economy: $ 1.99 Trillion US$
• Consumer Spending as a % of GDP: 49% in Arab World
vs. 37% in China and 57% in India
• Not All Arabs are Muslims…Faiths Co-Exist…Culture is
Mixed… Expats, Immigrants, South Asians, Etc.


The Arab World: 25 Years and Younger

• 53% of Arab World is 25 Years old or Under— 189 Million
“Arab World Millennials”
• The “Entrepreneurial Boom” is reaching the Arab World
• The “Arab World Millennials” --90 million:
Are looking for opportunity
--31 thousand: Come to the United States to study
• The Cultural Demands of Early Marriage and Housing


QNET in 2011

• Sales Growth + 15-20% over 2010
• QNET posted no significant penetration in top 10 Billion
dollar Global Markets
• Middle East/ North Africa sales suffered due to hostility
of “Arab Spring”
• Great growth potential across Asia


Four Phases Of Growth-2013

Formulation Concentration Momentum Stability

50

We Are Here!
TIME

The Power of the QI Group:

• QNET…Main Subsidiary of Conglomerate: The QI Group
• The QI Group- Engaged in:
• Direct Selling/E-Commerce
• Lifestyle and Leisure
• Property/Resort Management
• Training/Conference Operations –Telecommunications


QNET’S CORE VALUES: “S.T.I.R.”

Service
• Dedicated to service of
others

Results Oriented Teamwork
• Dedicated to • Work together as a
achieving highest unified team with a
results common goal

Integrity
• Conduct ourselves with
utmost integrity


QNET’S MISSION: “RYTHM”

• “…Help individuals reach their potential and their goals by
offering entrepreneurial opportunities and the highest
quality products practices while practicing “RYTHM”
RAISE YOURSELF TO HELP MANKIND (RYTHM)


QNET’S BUSINESS MODEL: “Global Reach, Local
Presence…”

• World Headquarters— Hong Kong
• Regional Offices
• Affiliate Companies
• Franchise Companies
• Agents


QNET’S PRODUCTS: Selection Criteria

• Innovation
• Exclusivity
• Quality
• Fit with QNET Philosophy
• Fulfillment of Market Need


QNET’S PRODUCT GROUPS

Luxury/
Energy Education
Collectibles

Fashion Weight
Nutrition
Accessories Management

Personal Holiday/
Home Care
Care Travel


Factual Concepts - Dr.Charles King

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