Network Marketing Companies in China: Growth, Challenges, and Opportunities in 2025
The direct selling sector in China has an interesting history. After an initial boom in the early 90s, the industry faced a pause due to numerous scandals and fraudulent activities within MLM companies. Despite this, network marketing companies have managed to maintain credibility by offering quality products and an honest approach to customer relations, ultimately achieving a significant revenue increase, reaching $3.5 billion in 2023.
Today, China ranks fourth among global MLM markets, generating over $15 billion in revenue in 2023. The country’s vast consumer base, advanced MLM software, booming digital platforms and cultural values,such as collectivism and persistence, continue to promote the development of MLM in China, creating ample opportunities for business growth and success. In this blog, we will have a detailed look at the top network marketing companies in China, the factors that influenced their growth, the challenges they face and much more!
History of Network Marketing in China
Early Growth and Initial Challenges
Direct sales in China began in the early 1990s when Avon launched its joint venture in Guangzhou on November 14, 1990. Despite a challenging political climate and financial struggles, the venture proved successful, and by 1997, Avon’s revenue in China reached 1 billion RMB (approximately 200 million USD in today’s terms).
Initially, MLM companies operated with little regulation, but the industry soon faced significant challenges. The allure of high earnings led to the rise of fraudulent pyramid schemes that focused on recruiting rather than product sales, damaging the reputation of network marketing.
In response, the Chinese government introduced a series of bans on MLM activities, resulting in tighter scrutiny of the market. By 1998, the government officially banned multi-level marketing (MLM) to combat pyramid schemes, allowing only the “Shop + Salesman” model for certain companies.
The 2005 Legalization and Regulation
In 2005, the Chinese government legalized direct selling under strict regulations. Following China’s accession to the World Trade Organization (WTO) in 2001, which promised the opening of shop-free sales within three years, the MLM ban was lifted by 2005, distinguishing between legitimate direct sales and MLM.
New regulations were introduced to differentiate legitimate MLM operations from pyramid schemes, requiring direct selling companies to obtain government-issued licenses, establish clear product lines, and ensure that commissions were based on actual product sales rather than recruitment.
This framework helped create a more regulated MLM market. In 2006, the China Direct Selling Association (CDSA) was established to promote compliance with these regulations, and 92 licenses were issued to qualifying companies.
The Golden Decade (2006-2019)
Between 2006 and 2019, China’s network marketing industry experienced rapid growth. The government’s regulations created a structured environment where MLM companies could flourish as long as they followed the rules. The rise of MLM e-commerce and social media platforms also played a key role in this growth.
However, in 2013, the government amended regulations to address concerns about companies operating close to MLM practices. The surge of e-commerce in 2016 further reshaped the industry, providing companies with broader access to potential customers and enabling them to reach a larger audience.
The “Hundred Days of Action” (2019) and Increased Regulations
In 2019, the Quanjian Group scandal, which involved MLM practices, triggered a crackdown and the launch of the “Hundred Days Action” program. This resulted in stricter regulations and marked the end of the “Golden Decade” of direct sales in China.
During this period, hundreds of companies had their direct selling licenses suspended, and the market underwent significant restructuring. The crackdown led to increased regulatory oversight and stricter enforcement of compliance measures, reshaping the future of the MLM sector in China.
As a result, businesses operating in this space were required to adopt more transparent and legitimate practices to remain in good standing. Despite these challenges, China’s direct sales market remained robust, valued at 280 billion yuan in 2021 and projected to exceed 300 billion yuan by 2023.
How Network Marketing Works in China
Legal Framework and Licensing Requirements
In 2005, China passed a law legalizing network marketing, but the MLM industry is heavily regulated. Key regulations include:
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MLM companies must apply for a license from the Ministry of Commerce to operate.
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Companies must provide training to recruits and issue them a “sales agent” certificate.
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No payments are allowed for joining the company or participating in training.
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Commissions can only be paid on one referral level, limiting multi-level structures.
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Products must meet high-quality standards to receive a sales license.
Despite these strict rules, many local and international MLM companies thrive in China. In 2013, the government amended regulations to address pyramid schemes by:
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Limiting excessive recruitment fees.
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Banning MLM schemes that focus on recruitment instead of product sales.
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Requiring more transparent compensation structures and product information.
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Improving consumer protection and dispute resolution.
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Implementing stricter licensing and inspection procedures to ensure compliance.
List of top MLM companies in China(2025)
Given below is an overview of the top MLM companies in China (2025) based on the latest revenue:
| Sl. No: | Company | Revenue 2024 (in million USD) | Revenue 2023 (in million USD) | Year Founded |
|---|---|---|---|---|
| 1 | Infinitus | 3,500 | 3,500 | 2019 |
| 2 | JoyMain Int. | 1,300 | 1,300 | 2000 |
| 3 | Perfect China | 1,250 | 1,250 | 1994 |
| 4 | Sunhope | 1,200 | 1,200 | 1993 |
| 5 | New Era Health | 1,000 | 1,000 | 1995 |
| 6 | Longrich | 850 | 850 | 1986 |
| 7 | Quanjian | 650 | 650 | 2004 |
| 8 | Golden Days China | 446 | 446 | 1991 |
| 9 | Tiens | 435 | 435 | 1995 |
| 10 | Anran | 210 | 210 | 2007 |
Overview of Top MLM companies in China 2025
Infinitus
Founder: Lee Kum Kee Group
Products & Services: Health Care
Achievements:
Awardee of 2023 National Business Quality Award
Infinitus, a member of the Lee Kum Kee Group, was founded in 1992 and is committed to promoting premium Chinese health regimens and improving lives globally. Specializing in traditional Chinese herbal health products, Infinitus operates in China, Hong Kong, Taiwan, Malaysia, Singapore, Canada, and other countries, offering solutions to growing health concerns like stress and poor lifestyle habits. Infinitus also upgraded its experience centers in 15 cities, launched 70 new products, and surpassed 10 billion yuan in revenue.
JoyMain Int.
Founder: N/A
Products & Services: Nutrition & Health Care
Achievements:
China’s Top Ten Credible Brands for Healthcare Products
Joymain International Group, established in 2000 and headquartered in Shanghai, China, specializes in manufacturing, marketing, and selling healthcare products, medical devices, and services worldwide. With over 20 years in the healthcare industry, Joymain offers a diverse range of high-tech products, including those with healthcare certifications and EU approval. The company has built a strong presence in the international MLM market and is valued at over 7 billion USD, despite initially generating 1.4 million USD in sales.
Perfect China
Founder: N/A
Products & Services: Health care, Household, Skin Care, and Personal Care
Achievements:
Top 100 Star Overseas Enterprise
Founded in 1994, Perfect (China) Co., Ltd. is headquartered in Zhongshan City, Guangdong Province, part of the Guangdong-Hong Kong-Macao Greater Bay Area. The company offers a wide range of products, including health food, kitchen utensils, cosmetics, and personal care items. Perfect has invested nearly 10 billion yuan across several bases in China and expanded its operations internationally to Hong Kong, Taiwan, Malaysia, Vietnam, and beyond. With over 10,000 service centers across China, Perfect continues to grow its presence in global markets.
Sunhope
Founder: Kazuyuki Masumitsu
Products & Services: Nutrition, Skincare, Home Care
Achievements:
Awarded the Health Industry Social Responsibility Star of 2021 by Finance China
Established in 1993 in Tianjin, China, Sun Hope ranks 23rd among the top 100 MLM companies worldwide. Sun Hope invested 100 million yuan to build Sunhope Intelligent Technology, focusing on manufacturing a range of products, including healthy foods, healthcare devices, cosmetics, beauty machines, air purifiers, and more. The company operates internationally with branches in the United States, Indonesia, Malaysia, China, and beyond. Sun Hope’s legacy includes the introduction of Japan’s first water sprinkler in 1955 and the Versatile Side Irrigation System in 2010.
New Era Health
Founder: N/A
Products & Services: Health Care, Personal Care, Nutrition
Achievements:
N/A
Founded in China and now operating in over 14 countries, New Era Health Advisors has experienced continuous growth since its inception. The company offers a wide range of products, including homecare essentials (detergents, dishwashers, and smart gadgets), nutritional supplements (proteins, vitamins, and more), and cosmetics (lipsticks, mascaras, eyeliners, and skincare). New Era Health Advisors has built a strong reputation through its dedication to providing valuable products for everyday life, coupled with award-winning service and support.
Longrich
Founder: Xu Zhiwei
Products & Services: Health Care
Achievements:
Top 100 Growth Brand in Asia 2015
Founded in 1991, Longrich is a well-established Chinese Multi-Level Marketing (MLM) company that specializes in health, beauty, and personal care products. With a strong emphasis on research and development, Longrich has built a robust product portfolio that includes everything from skincare and cosmetics to nutritional supplements and household products. The company has been dedicated to providing high-quality, innovative products while creating a lucrative business opportunity for its global network of distributors.
Quanjian
Founder: Shu Yuhui
Products & Services: Health Care
Achievements:
N/A
Quanjian, founded in 2004, is a prominent Chinese company that operates in the health and wellness sector, specializing in dietary supplements. The company achieved rapid growth by leveraging both direct sales and online platforms to reach a broad customer base, positioning itself as one of the largest health product distributors in China. Its innovative approach to marketing allowed Quanjian to tap into the growing demand for health-conscious products and wellness solutions, contributing to its remarkable success.
Golden Days China
Founder: N/A
Products & Services: Skin Care, Health Care
Achievements:
Excellence Award from Shanghai Domestic & International Products Expo
Golden Days, founded in 1991, is a prominent Chinese Multi-Level Marketing (MLM) company known for its health-conscious product offerings. The company has significantly benefited from the growing trend of gluten-free products, positioning itself as a key player in the market. In addition to gluten-free options, Golden Days has built a strong reputation for its Sesame-seed Snacks and Paleo Bars, which have become highly popular for their nutritional value and delicious flavors. With a wide range of products designed to support a healthy lifestyle, Golden Days continues to expand its portfolio to meet the evolving needs of health-conscious consumers.
Tiens
Founder: Li Jinyuan
Products & Services: Wellness, Beauty, Skincare, Self-care, and Household products
Achievements:
N/A
Tiens Group, a Chinese direct sales company, was founded in 1995 by Li Jinyuan and is headquartered in Tianjin, China. The company entered the international market in 1997, initially offering Traditional Chinese Medicinal Products. Over 26 years, Tiens has expanded its operations, integrating biotechnology, health management, e-commerce, tourism, and international trade. With a diverse product range that includes traditional medicines, calcium tablets, and health supplements, Tiens combines natural remedies with modern technology to provide high-quality products globally.
Anran
Founder: N/A
Products & Services: Wireless Camera Systems
Achievements:
N/A
ANRAN, founded in 2007 and headquartered in Shenzhen, China, is a leading brand in the security monitoring market. The company specializes in providing simple, accessible video and intelligent security solutions. ANRAN’s products, including Wireless Camera Systems, Poe Camera Systems, Analog Camera Systems, DVRs/NVRs, and IP Cameras, are sold globally across regions like the US, UK, Australia, and the EU, and are available on platforms like Amazon, eBay, and AliExpress. Their product range includes three series: ANRAN, SWINWAY, and ARSECUT.
The Role of E-Commerce and Digital Platforms in Chinese MLM
The Role of Livestream Shopping in MLM Growth
Livestream shopping has become a massive industry in China, worth around $60 billion annually and accounts for 37% of retail spending in the country. This success is driven by China’s affordable internet access and the widespread adoption of mobile shopping and payment systems, which provide an ideal environment for MLM businesses to expand digitally.
In cities like Shanghai, companies have created entire buildings dedicated to livestream shopping. These livestream events take place on platforms such as Douyin (China's TikTok), Taobao and Alibaba, making it easier for MLM companies to reach a vast audience.
Did You Know?
An impressive 57% of Chinese consumers engage in live commerce, compared to just 5-7% in regions like Europe, Latin America, and the US.
The Rise of Social Selling and Influencer Marketing in MLM
China boasts the largest social media audience globally, with over one billion users across platforms like Douyin, Little Red Book and WeChat. These platforms use advanced algorithms and AI to deliver highly personalized content, making them perfect for MLM businesses to target specific audiences.
Key opinion leaders (KOLs) play a crucial role in China’s social media marketing. Chinese consumers are more likely to rapidly follow influencers and celebrities, which has fueled the rise of influential figures such as Viya and Lipstick King. MLM businesses use these platforms to connect with their audiences, expand their reach and build credibility through influencer marketing.
Mobile Technology’s Impact on MLM and E-Commerce
Mobile technology has been a key factor in the growth of MLM and e-commerce in China. With nearly 98% of internet users accessing the web via mobile devices, the widespread use of smartphones has facilitated the rise of mobile payments, with 72% of users embracing mobile payment methods.
Furthermore, China’s rapid internet penetration, with over 900 million internet users, has created a strong foundation for e-commerce platforms. This large user base provides MLM businesses with an expansive digital audience, enabling them to reach customers across the country more effectively.
The Role of AI-Powered Customer Engagement in MLM
AI-powered customer engagement is changing the MLM industry in China by enabling businesses to more effectively target the right audience, personalize marketing efforts and automate customer interactions. AI chatbots analyze data to identify high-potential leads and personalize recommendations, ensuring marketing efforts are more efficient and tailored to individual preferences.
These AI advancements also help foster customer loyalty by providing a more responsive and personalized experience, which builds trust and satisfaction. AI can detect customer sentiment, address issues proactively, and ensure that customers feel valued, leading to stronger relationships and increased retention.
Challenges of Network Marketing in China
Operating a network marketing business in China requires strict adherence to regulations, as pyramid selling and multi-level marketing (MLM) are illegal. Companies must avoid compensating distributors based on sales to those lower in the hierarchy or down-line. Violating these laws can lead to severe consequences, including investigations, arrests of key personnel, and the shutdown of online operations, which are vital to MLM businesses in China.
Some international companies attempt to bypass these restrictions using cross-border e-commerce models, but these businesses are still subject to Chinese legal compliance, even if operating offshore. Non-compliance can result in substantial fines, the loss of business licenses, and other legal actions. The stringent government oversight and high risks of non-compliance make it critical for companies to maintain strict operational control in the country.
A primary compliance challenge is obtaining a Direct Sales License, which requires meeting high financial thresholds, including a security deposit of USD 2.9 million and a minimum paid-up capital of USD 11.5 million. The license is restricted to six product categories, such as cosmetics and health food, and any deviation could result in penalties or the revocation of the license. Additionally, tax compliance is complex, especially with offshore payments and risks of being deemed a permanent establishment in China.
Conclusion
In conclusion, the MLM industry in China has experienced significant growth, overcoming early challenges to become a booming market. With a large and diverse consumer base, rapid technological advancements, and a cultural emphasis on teamwork and perseverance, China offers immense potential for MLM businesses. The regulatory framework established in 2005 has provided the necessary clarity and transparency, fostering a more legitimate and trusted environment for direct selling companies. As digital platforms like WeChat continue to grow, the future of MLM in China looks promising, offering both opportunities and challenges for businesses aiming to succeed in this dynamic and competitive market.
Frequently Asked Questions
Yes, direct selling is legal, but MLM pyramid schemes are illegal under Chinese law.
MLM companies must comply with the "Regulations on Direct Selling Management" and avoid pyramid schemes to operate legally.
Some of the top MLM companies in China include Infinitus, JoyMain International, Perfect China, and Amway.
Network marketers in China use platforms like WeChat, Douyin, live-streaming, and eCommerce to market and sell products.
Key risks include strict government regulations, fierce competition, public skepticism, and potential legal issues.
Yes, foreign MLM companies can operate in China, but they must meet local legal requirements and adhere to the regulations on direct selling.
Foreign companies face challenges like navigating cultural differences, local competition, and ensuring compliance with Chinese laws.
Yes, MLM companies in China must only sell legally approved products, and certain categories like health supplements require special permits and licenses.
Meet The Author
Rachel Neil Thomas
Product Development Executive
Meet The Author
Rachel Neil Thomas
Product Development Executive
February 27, 2025
