The mainland's potential entry into the World Trade Organisation will accelerate the pace of Beijing re-opening the direct-selling business, according to a new Hong Kong industry participant. USANA executive director for international development Bradford Richardson said WTO membership would open up more dialogue on the business between the US and mainland governments and professional organisations. The dialogue is expected to concentrate on the establishment of codes of ethics, rules and regulations to ensure network-marketing companies operate ethically and systematically. The mainland government imposed a ban on all forms of direct-marketing activities in April last year, claiming the business had brought calamity to its citizens and society. 'The Sino-US agreement on China's WTO membership has confirmed both countries' vision for the value of open and free trade, the proliferation of distribution channels including direct selling,' Mr Richardson said. Direct selling as a business model should contribute positively to the mainland's economy, he said because it created new distribution channels, provided participants with a good source of income and allowed end-consumers access to better products. Mr Richardson said professional organisations such as the Worldwide Direct Selling Association had been working closely with relevant mainland government departments to draft the codes and regulations. USANA, the Salt Lake City-based and Nasdaq-listed nutritional supplement company, yesterday announced the official launch of its business in Hong Kong. Mr Richardson said the company was initially looking at achieving a sales target of US$8 million, through recruiting 12,000 to 14,000 distributors within its first year of operation. DIRECT SELLING
