• GDP nominal: 10,354 billion USD
  • Population: 1.3 billion
  • Unemployment rate: 4.7%
  • Ease of doing business rank: 84th

As of 2014, China has the world's 2nd largest economy in terms of nominal GDP. Until 2015. China was the world's fastest-growing major economy, with growth rates averaging 10% over 30 years.

China's middle-class population (if defined as those with annual income of between 10,000 USD and 60,000 USD) had reached more than 300 million by 2012. According to the Hurun Report, the number of US dollar billionaires in China increased from 130 in 2009 to 251 in 2012, giving China the world's second-highest number of billionaires.

China's domestic retail market is worth over 20 trillion yuan (3200 billion USD) in 2012 and is growing at over 12% in 2013.


Direct Selling in China

  • GDP Growth Constant USD 2014: 7.3%
  • YoY Industry Growth Constant USD 2014: 18.6%

China had banned Direct Selling in 1998 and tolerated Direct Selling companies only if distribution is made through the Retail channel. These restrictions have been partially lifted in 2005 and in order to operate under a Direct Selling distribution channel companies are required to obtain a special license from the Chinese Ministry of Commerce (MOFCOM).

Direct Selling corporations need to respect certain limitations regarding product categories and compensation plans. The industry has been growing extremely fast since 2005: China is now the second biggest Direct Selling market in the world after the U.S. and is the largest market in Asia representing 30.2 billion USD (2014).

In terms of revenue, China is almost equal to the #2 and #3 markets of the sector in Asia, respectively Japan and Korea. The last few years have seen the number of Direct Selling licenses awarded by the Chinese government increasing considerably (15 in 2015) which will support the industry’s development in the next few years.

The fast development of E-commerce to the middle-class has become serious competition to the Direct Selling channel. However, in a country where the median age is high and doing business through affective trust (Business relations built through personal interactions) is valued, the traditional person to person business model will continue to flourish.

With the largest population in the world, China has become a very attractive country for Direct Selling companies. However, as a young industry, several companies have been facing political and compliance issues.

There is no available data regarding number of distributors in China nor information about product categories.

Sources: ASENSHIA, World Bank, WFDSA, Euromonitor, Wikipedia

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