Q2 2025 Performance Highlights - BeFra Group's net revenue increased by 5.1% in Q2 2025, driven by Jafra Mexico and rebounds in Betterware Mexico and Jafra US[3] - The Group's EBITDA increased by 3.5% in Q2 2025, reaching a margin of 19.1%, primarily due to higher margins in Jafra Mexico[3] - Positive Free Cash Flow (FCF) generation achieved an EBITDA conversion of 87.2% in Q2 2025, with expectations to maintain historical levels of approximately 60% by year-end[4] - Net income grew by 7.7% in Q2 2025, attributed to lower interest rates in Mexico and reduced taxes[4] Segment Performance - Betterware Mexico's revenues decreased by 1.2%, but experienced a sequential rebound of 4.0% in Q2 2025, driven by pricing strategies, innovation, and renewed incentives[7] - Jafra Mexico's net revenues increased by 10.9% in Q2 2025, driven by strong performance in Fragrance, Color, and Skin Care categories[11] - Jafra Mexico's EBITDA grew by 14.2% year-over-year (YoY), with the margin expanding to 21.2%, driven by sales volume growth, improved sales mix, and cost management[12] - Jafra US net revenues decreased by 8.9% in USD, but rebounded by 15.6% QoQ, driven by commercial strategies[14] Financial Guidance and Capital Allocation - The company reaffirms its full-year guidance, projecting net revenue between $14.9 billion and $15.3 billion (6.0%-9.0% increase YoY) and EBITDA between $2.9 billion and $3.0 billion (6.0%-9.0% increase YoY)[36] - A dividend of Ps 200 million has been proposed for Q2 2025, marking the 22nd consecutive quarterly dividend payment since the IPO in March 2020[37]

Core Viewpoint - The meeting in Shanghai aimed to combat "black market direct selling" through government-enterprise collaboration, marking a significant step in optimizing the direct selling industry environment in Shanghai [1][4]. Group 1: Government and Industry Collaboration - The meeting resulted in the signing of a Memorandum of Cooperation between five direct selling companies and five leading e-commerce platforms, establishing a cross-sector collaborative governance mechanism [1][3]. - The Shanghai Municipal Market Supervision Administration has innovated mechanisms to create an "Internet Law Enforcement Collaborative Governance Platform," utilizing cross-departmental data sharing and joint law enforcement to effectively target illegal activities [4]. Group 2: Industry Challenges and Innovations - The direct selling industry faces challenges such as counterfeit products and brand defamation, which disrupt market order and harm consumer rights [4]. - Natural Sunshine, a direct selling company, emphasizes compliance and technological innovation as dual engines for growth, having obtained a direct selling license in May 2017 [4][5]. Group 3: Digital Transformation and Market Strategy - Natural Sunshine has adopted a "digital octopus strategy" to establish a comprehensive digital matrix across various online platforms, creating a closed-loop ecosystem for brand communication, product experience, and community operation [7][8]. - The company has positioned itself as a "finger-tip direct selling company," focusing on digital experiences and actively engaging in social media to promote its brand and products [7][8]. Group 4: Future Outlook and Sustainable Development - The signing of the Memorandum of Cooperation is seen as a significant practice in optimizing the business environment in Shanghai, paving the way for innovative and mutually beneficial collaborations between direct selling companies and e-commerce platforms [8]. - The direct selling industry is undergoing a transformation from a "traditional model" to "ecological collaboration," with Natural Sunshine aiming to deepen cooperation with e-commerce platforms under the supportive policies and innovative environment in Shanghai [8].

Group 1 - The core theme of the meeting was "Building a Connected Ecosystem through Compliance and Collaboration between Direct Selling Enterprises and E-commerce Platforms" [1] - A memorandum of cooperation was signed by five direct selling companies and five e-commerce platforms, aiming for mutual benefits and win-win outcomes [1] - The memorandum focuses on three main areas: ensuring genuine products in Shanghai, protecting consumer rights, and opposing "low-price competition" in the direct selling sector [1] Group 2 - The rise of counterfeit direct selling products and malicious defamation of direct selling brands has harmed the industry and consumer rights, highlighting the need for better communication between e-commerce platforms and direct selling companies [1] - Under the guidance of the Shanghai Market Supervision Administration, 277 e-commerce stores involved in "black market" activities have been closed, and 4,970 product links have been removed to protect legitimate direct selling enterprises [1] - The memorandum is seen as a starting point for collaboration, with six direct selling companies already establishing 18 official accounts on various e-commerce platforms to enhance brand building [2] Group 3 - Future plans include exploring information sharing and establishing regular communication channels between direct selling enterprises and e-commerce platforms [2] - Direct selling companies will actively seek deeper cooperation with e-commerce platforms to leverage platform traffic and technology for business development [2]

Group 1 - The core viewpoint of the article is the collaboration between five direct selling companies and five internet platform companies in Shanghai to enhance consumer protection and combat low-price competition in the direct selling sector [1] - The memorandum includes three main aspects: ensuring genuine products in Shanghai, protecting consumer rights, and opposing "low-price internal competition" in the direct selling field [1] - The Shanghai market regulatory authority has reported the closure of 277 illegal e-commerce stores related to "direct selling black market" activities and the removal of 4,970 product links to maintain the legitimate rights of direct selling companies [1]

Core Insights - Tianxi Group has been recognized as a leading enterprise in the health industry, winning two significant awards at the "2025 New Consumption Creator Carnival and the 18th World Direct Selling Brand Festival" held in Wuhan, China [1][3] - The company is actively exploring product and service upgrades in the context of the digital economy, aiming to build a global health ecosystem [3][5] - Tianxi Group emphasizes compliance, business model innovation, and global expansion, contributing valuable experiences for the industry's development [3] Group 1 - Tianxi Group was awarded "2025 New Consumption Annual Influential Enterprise" and "2025 World Direct Selling Brand Influential 100 List" [1] - The event gathered elite figures from the direct selling industry, highlighting Tianxi's innovative strategies and successful experiences in the new consumption era [1][3] - The recognition serves as both an affirmation of past achievements and motivation for future endeavors [3] Group 2 - The company aims to deepen its global strategy, accelerate technological innovation, and enhance digital transformation to provide better health products and services [3][5] - Under the leadership of Mr. Li Jinyuan, Tianxi Group is committed to driving innovation and creating value for global consumers [5] - The company seeks to set new benchmarks for industry development while collaborating with global peers to promote the prosperity of the new consumption ecosystem [5]

Core Insights - PM International ranks sixth in the 2025 Global Direct Selling Top 100 with an annual sales of $3.25 billion and has been recognized as the fastest-growing international company in the direct selling industry for five consecutive years [1][3] - The company claims a global market potential of $49.3 billion and 23.5 million core customers, driven by a strong vision and consistent desire among its distributors for innovation and global expansion [3] Company Overview - PM International is considered one of the hottest unlicensed direct selling companies in China, achieving significant performance in the market despite its mysterious operations [4][7] - The company has not officially launched in China but claims to have generated approximately $2 billion in sales [7] - PM International has been invited to participate in international seminars on direct selling regulation, despite not having obtained a direct selling license in China [7] Market Operations - PM International operates through two wholly-owned subsidiaries in China: PM (China) Daily Necessities Co., Ltd. registered in Chengdu and Pei'an (Yantai) Daily Necessities Co., Ltd. registered in Yantai [9][12] - The Chengdu subsidiary was established in 2014 with a registered capital of 80.2 million RMB, aiming to meet the standards for applying for a direct selling license [9] - The Yantai subsidiary was registered in 2024 and has seen changes in management, with a recent shift to a Chinese national as the general manager [12] Challenges and Mystique - The company has faced scrutiny regarding its operations, including its headquarters being in Luxembourg, a known tax haven, while claiming to be a German company [7] - There are inconsistencies in the company's operational strategies, with conflicting reports about its headquarters and market launch plans [7][19] - The company has been described as having a secretive membership registration process, requiring potential members to register through overseas websites [7][8] Employee Insights - Employees at PM International have indicated that the company is still in the preparatory phase for its official launch in China, focusing on obtaining the necessary direct selling license [27][29] - The company has not yet established a physical presence or product availability in China, with employees stating that they are primarily engaged in preparatory work [27][36] - Employees have expressed uncertainty about the operational dynamics between the Chengdu and Yantai offices, indicating a lack of communication between the two [39][43]

Group 1 - The 2025 New Consumption Creator Carnival and the 18th World Direct Selling Brand Festival will be held in Wuhan, focusing on innovation and opportunities [2] - Tianjin Hezhi Youde Pharmaceutical Co., Ltd. ranked 16th on the "2025 World Direct Selling Brand Influence 100 List" and received multiple awards including "2025 New Consumption Annual Influential Enterprise" and "2025 New Consumption Globalization Renewal Pioneer" [20][18] - The event aims to explore cutting-edge trends in the new consumption sector and identify potential business opportunities for sustainable development [4] Group 2 - Chairman Han Jinming, as the rotating chairman of the event, emphasized the importance of "renewal" in the context of domestic and international trends, and the digital age [9] - The company has been focusing on independent and continuous innovation, aiming for high-quality global development through digital transformation and sustainable practices [12] - The company plans to contribute to building a healthy community and promoting health culture as part of its future initiatives [23]

Core Insights - The article discusses the evolution of direct selling models in the context of digital transformation, emphasizing that new business forms like social e-commerce and live streaming are fundamentally rooted in traditional direct selling principles [1][21]. Group 1: Compliance as a Foundation - Compliance is essential for entrepreneurs seeking to leverage the benefits of the evolving business landscape, with legal qualifications being a fundamental requirement to mitigate legal risks [3][7]. - High-quality products are crucial for sustaining business models, as platforms must offer competitive and repeat-purchase products to thrive [4]. - Strong backing, including robust supply chain management and ongoing R&D investment, is vital for long-term competitiveness [5][7]. Group 2: Core Model - Standardized Operations - The core value of direct selling and its derivatives lies in creating an efficient system for "resource integration + interpersonal expansion," driven by network effects [9]. - Mature platforms provide standardized training, tools, IT systems, and support services, significantly lowering entry barriers for participants [10]. - Platforms consolidate extensive resources across product development, production, branding, logistics, payment, and customer service, allowing entrepreneurs to focus on network expansion and value delivery [11]. Group 3: Dual-Engine Mechanism - The unique appeal of direct selling for entrepreneurs is its dual-engine mechanism of "sustained income + replicable growth," offering a clear upward path for ordinary individuals [14]. - Sustained income encourages the establishment of stable customer bases and efficient teams, allowing for ongoing earnings based on team performance and customer loyalty [15]. - The replicability of successful methodologies and training systems enables team members to learn and duplicate success, leading to exponential income growth for team leaders [16]. Group 4: Digital Empowerment - The explosion of digital technology has not replaced direct selling logic but has instead enhanced its reach into broader fields, such as social e-commerce and platform economies [19][20]. - Social e-commerce leverages platforms like WeChat for community operations, effectively extending direct selling principles through real-time online connections [19]. - In the sharing economy, community group buying and local service platforms replicate direct selling's hierarchical expansion model, improving network growth and transaction efficiency [20]. Group 5: Key to Success - The key to success lies in understanding the core value of the model amidst the rapid evolution of business forms, with compliance platforms providing stability and model advantages driving growth [23]. - The combination of compliance, model advantages, and individual capabilities such as learning, execution, and leadership is essential for navigating the current business landscape [23].

Core Insights - Zinzino, a global direct sales company based in Sweden, has reported significant revenue growth, particularly in the Asia-Pacific region, which has increased by 387% [2][4] - The company's total revenue for April 2025 reached $26 million, marking a 54% year-on-year increase, while cumulative revenue from January to April 2025 reached $102 million, a 58% increase [2][4] - Zinzino's entry into the Chinese market is driven by the rapid expansion of the personalized nutrition and supplement market, which is projected to reach $615 million by 2024 and exceed $1.57 billion by 2030, with an annual growth rate of 16.4% [4][6] Revenue Growth - Zinzino's revenue in the Asia-Pacific region has shown remarkable growth, with a 387% increase, while North America also saw a 237% increase [4] - The company ranked 45th in the global direct selling top 100 with an annual sales figure of $200 million [2] Market Strategy - Zinzino's CEO emphasized that entering the Chinese market aligns with the growing demand for scientific and personalized health solutions [4] - The company plans to offer a comprehensive product range, particularly its flagship product, BalanceOil+, to help consumers manage their health [6] Challenges and Adaptations - The suspension of direct selling licenses in China has forced Zinzino to adopt a cross-border e-commerce model, which presents both challenges and opportunities [7][8] - The company faces the challenge of maintaining effective team motivation and business growth without the core incentives of direct selling [9] - Competition from established e-commerce giants in China necessitates innovative strategies for customer acquisition and operational efficiency [11] Future Outlook - The cross-border e-commerce model is seen as a temporary solution rather than a perfect substitute for direct selling, and Zinzino must navigate compliance issues to ensure a successful market presence [13] - The potential for success lies in leveraging product quality and compliance to build consumer trust, as evidenced by successful international health brands [11][13]