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MLM Market
IN SOUTH KOREA
Justin Kim
bushkim@naver.com
1. Network market in SK
Network marketing is very popular in South Korea.
As of 2015, the population of South Korea is approximately over 50 million
people. The number of distributors is 7.96 million
Why MLM is so popular in SK.
.
. There aren’t tons of great jobs to have, and so many people resort to start MLM
. There is less job for early retired people and retirement age is getting lowered
. They don’t have much money to start even a business. It is the low cost of entry
. They are very good at relationship management
. It has a high density of population, so they can meet each other very easily
. They have a strong desire to learn and succeed, and its college entrance rate is over
80%
.
Number of MLM Company.
2010 2011 2012 2013 2014 2015
MLM
Company
67 70 94 106 109 128
Annual sales in 2015
. 128 MLM companies recorded 5.2 billion dollar, up 14.6 % from 2014
( Top 10 MLM companies occupied 3.6 billion dollar, 42% of total sales of Korea)
Network market is SK
Sales volume
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
5.5
4 / 21
2015 Top 10 MLM Companies in SK
Network market is SK
Rank COMPANY
SALES(M$)
Commisio
n (M$)
Commisio
n rate
DISTRIBUTORS 2014
2015 2014 (1,000)
SALES RA
NKING
1 Amway (Global) 1,173 1,121 385 32.8% 1,138 1,085 1
2 Atomy (Local) 698 514 239 34.2% 2,561 2,027 4
3 Nuskin Korea (G) 530 540 183 34.5% 457 479 2
4 Hurbal life (G) 375 527 126 33.6% 274 338 3
5 Unicity korea (G) 227 213 77 33.9% 139 112 5
6 IFCI(L) 203 62 49 24.1% 268 109 14
7 ACN Korea 121 53 39 32.2% 53 31 16
8 Aphrozone(L) 104 56 32 30.8% 59 38 15
9 Seacret (G) 102 73 35 34.3% 63 68 8
10 Nerium(G) 90 0 31 34.4% 138 0
New launc
hed
5 / 21
2015 Top 10 MLM Companies in SK
Network market is SK
Amway (Global)
Atomy (Local)
Nuskin Korea (G)
Hurbal life (G)
Unicity korea (G)
IFCI(L)
ACN Korea
Aphrozone(L)
Seacret (G)
Nerium(G)
others
6 / 21
Top 10 companies has 70.3% of sales in total volume
Network market is SK
Number of
companies
Total sales( M $) Top 10 sales weight
2014 99 4,497 3,332 74.1%
2015 108 5,153 3,630 70.3%
Growth Rate 9.1% 14.6% 8.9%
70.3%
Top 1% takes 53% of payment
 Only a few distributors make money,
Sponsored commissio
n salesperson
Total Payment
( MILLION $)
Everage payment f
or a person
($)
2014 2013 2014 2013
Top 1% 779 709 58,640 56,620
Top 1% ~ 6% 393 343 5880 5470
Top 6% ~ 30% 223 189 700 630
Top 30% ~ 60% 47 38 120 100
Top 60% ~ 100% 19 13 35 25
payment
Top 1%
The rest 99%
Network market is SK
Status of Registered distributors
Network market is SK
2013 2014 2015
Registered
Distributors
5.7 6.89 7.96
Distributors
Getting Paid
1.3 1.34 1.62
0
1
2
3
4
5
6
7
8
9
2013 2014 2015
Registered Distributors
Distributors Getting Paid
Unit : Million
Status of Distributors of Top 10 Companies
Network market is SK
Rank Company
2015 2014 Variation
Registered Paid Registered Paid Registered Paid
1 Amway (Global) 1,137,740 501,568 1,085,322 468,708 52,418 32,860
2 Atomy (Local) 2,561,088 234,128 2,026,641 168,958 534,447 65,170
3 Nuskin Korea (G) 457,427 65,363 478,827 69,132 △21,400 △3,769
4 Hurbal life (G) 274,118 63,456 338,410 60,589 △64,292 2,867
5 Unicity korea (G) 138,832 70,888 112,240 66,096 26,592 4,792
6 IFCI(L) 268,447 164,985 108,911 62,967 159,536 102,018
7 ACN Korea 53,185 28,293 30,603 13,839 22,582 14,454
8 Aphrozone(L) 58,676 11,623 37,681 5,569 20,995 6,054
9 Seacret (G) 62,655 24,492 68,490 33,623 △5,835 △9,131
10 Nerium(G) 137,924 29,973 - - 137,924 29,973
계 5,150,092 1,194,769 4,287,125 949,481 862,967 245,288
MLM market share by product line of 20
Nutritional Cosmetic Waterfilter Other Total
Market Size 1,584 984 278 1,566 4,412
Market Share 35.9% 22.3% 6.3% 35.5% 100.0%
•Daily Necessities
•Service
•Home Care
•Special Underwear
•Cook Ware
•Plastic Ware
•Special Bedding Ware
•etc.,
Unit : Mil. USD
Network market is SK
Thanks for reading to the End
If you have anything to ask
Just feel free to connect to me
https://www.linkedin.com/in/jongwoon-kim-1a043960
Email : bushkim@naver.com
Network market is SK

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Korea MLM Market Information.

  • 1. MLM Market IN SOUTH KOREA Justin Kim bushkim@naver.com
  • 2. 1. Network market in SK Network marketing is very popular in South Korea. As of 2015, the population of South Korea is approximately over 50 million people. The number of distributors is 7.96 million Why MLM is so popular in SK. . . There aren’t tons of great jobs to have, and so many people resort to start MLM . There is less job for early retired people and retirement age is getting lowered . They don’t have much money to start even a business. It is the low cost of entry . They are very good at relationship management . It has a high density of population, so they can meet each other very easily . They have a strong desire to learn and succeed, and its college entrance rate is over 80% . Number of MLM Company. 2010 2011 2012 2013 2014 2015 MLM Company 67 70 94 106 109 128
  • 3. Annual sales in 2015 . 128 MLM companies recorded 5.2 billion dollar, up 14.6 % from 2014 ( Top 10 MLM companies occupied 3.6 billion dollar, 42% of total sales of Korea) Network market is SK Sales volume 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 5.5
  • 4. 4 / 21 2015 Top 10 MLM Companies in SK Network market is SK Rank COMPANY SALES(M$) Commisio n (M$) Commisio n rate DISTRIBUTORS 2014 2015 2014 (1,000) SALES RA NKING 1 Amway (Global) 1,173 1,121 385 32.8% 1,138 1,085 1 2 Atomy (Local) 698 514 239 34.2% 2,561 2,027 4 3 Nuskin Korea (G) 530 540 183 34.5% 457 479 2 4 Hurbal life (G) 375 527 126 33.6% 274 338 3 5 Unicity korea (G) 227 213 77 33.9% 139 112 5 6 IFCI(L) 203 62 49 24.1% 268 109 14 7 ACN Korea 121 53 39 32.2% 53 31 16 8 Aphrozone(L) 104 56 32 30.8% 59 38 15 9 Seacret (G) 102 73 35 34.3% 63 68 8 10 Nerium(G) 90 0 31 34.4% 138 0 New launc hed
  • 5. 5 / 21 2015 Top 10 MLM Companies in SK Network market is SK Amway (Global) Atomy (Local) Nuskin Korea (G) Hurbal life (G) Unicity korea (G) IFCI(L) ACN Korea Aphrozone(L) Seacret (G) Nerium(G) others
  • 6. 6 / 21 Top 10 companies has 70.3% of sales in total volume Network market is SK Number of companies Total sales( M $) Top 10 sales weight 2014 99 4,497 3,332 74.1% 2015 108 5,153 3,630 70.3% Growth Rate 9.1% 14.6% 8.9% 70.3%
  • 7. Top 1% takes 53% of payment  Only a few distributors make money, Sponsored commissio n salesperson Total Payment ( MILLION $) Everage payment f or a person ($) 2014 2013 2014 2013 Top 1% 779 709 58,640 56,620 Top 1% ~ 6% 393 343 5880 5470 Top 6% ~ 30% 223 189 700 630 Top 30% ~ 60% 47 38 120 100 Top 60% ~ 100% 19 13 35 25 payment Top 1% The rest 99% Network market is SK
  • 8. Status of Registered distributors Network market is SK 2013 2014 2015 Registered Distributors 5.7 6.89 7.96 Distributors Getting Paid 1.3 1.34 1.62 0 1 2 3 4 5 6 7 8 9 2013 2014 2015 Registered Distributors Distributors Getting Paid Unit : Million
  • 9. Status of Distributors of Top 10 Companies Network market is SK Rank Company 2015 2014 Variation Registered Paid Registered Paid Registered Paid 1 Amway (Global) 1,137,740 501,568 1,085,322 468,708 52,418 32,860 2 Atomy (Local) 2,561,088 234,128 2,026,641 168,958 534,447 65,170 3 Nuskin Korea (G) 457,427 65,363 478,827 69,132 △21,400 △3,769 4 Hurbal life (G) 274,118 63,456 338,410 60,589 △64,292 2,867 5 Unicity korea (G) 138,832 70,888 112,240 66,096 26,592 4,792 6 IFCI(L) 268,447 164,985 108,911 62,967 159,536 102,018 7 ACN Korea 53,185 28,293 30,603 13,839 22,582 14,454 8 Aphrozone(L) 58,676 11,623 37,681 5,569 20,995 6,054 9 Seacret (G) 62,655 24,492 68,490 33,623 △5,835 △9,131 10 Nerium(G) 137,924 29,973 - - 137,924 29,973 계 5,150,092 1,194,769 4,287,125 949,481 862,967 245,288
  • 10. MLM market share by product line of 20 Nutritional Cosmetic Waterfilter Other Total Market Size 1,584 984 278 1,566 4,412 Market Share 35.9% 22.3% 6.3% 35.5% 100.0% •Daily Necessities •Service •Home Care •Special Underwear •Cook Ware •Plastic Ware •Special Bedding Ware •etc., Unit : Mil. USD Network market is SK
  • 11. Thanks for reading to the End If you have anything to ask Just feel free to connect to me https://www.linkedin.com/in/jongwoon-kim-1a043960 Email : bushkim@naver.com Network market is SK