Pyramid Selling

 

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Multi-Level Marketing, a Hidden Peril in China

HONG KONGMulti-level marketing (MLM) 1 , also know as pyramid schemes ( chuanxiao ), has become prevalent again in China in the past two years 2 .

Millions of people, including students and farmers, are involved in this sector, drawing 50 billion yuan (US$6.66 billion) into the scheme. Chinese authorities continue, however, to be wary of direct sales on a number of grounds, among them pyramid scheme frauds, strong networking capabilities and loss of social stability.

With such a large and well-organized sales force, MLM has caused panic on the authorities. In July and August of this year, the authorities significantly strengthened the co-operation with related departments in fighting illegal pyramid selling.

According to Oriental Daily News in Hong Kong, MLM salespeople, dissatisfied with the authority's bans, often gather a crowd to attack governmental agencies.


Pirro seeks measures tied to Destiny project

Onondaga County Executive Nicholas Pirro announced Thursday a series of measures to help the Destiny USA project move forward and boost the local economy.

Pirro will ask the county Legislature to approve four items by the end of the year. Two measures involve selling county land parcels to The Pyramid Cos. Two others involve marketing programs.

Pirro offered the measures the same day Destiny developer Robert Congel announced plans for a $450 million hotel.

If the Legislature passes the first item, the county would sell a 36.5-acre parcel of unused land on the southeastern shore of Onondaga Lake. CSX rail lines separate the parcel, known as "Murphy's Island," from the Carousel Center. The site would be used for future lodging and recreation, including the continuation of the Loop Around the Lake trail.


Chinese protest at squashed ant investments

Pensioners and workers have been staging protests outside a company which offered shares in giant ants in the latest example of the effects of China's lopsided economic growth on ordinary people.

The protesters had invested savings in a scheme that was intended to make an aphrodisiac tonic out of the ants. Some also paid to become ''ant farmers'', being given equipment selling on the ants as they grew.

In common with a raft of similar schemes which have grown up in the last two decades of economic reform, several based on pyramid-selling techniques, investors were promised their money would grow dramatically in value. Such offers are tempting, particularly to small investors.

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A jazzed-up 'Masterpiece Theatre' begins on PBS

It's Sunday, 9 p.m. and time for "Masterpiece ..."

Hold on. Where's the triumphal fanfare? Where's the snorkeler's-eye view of the library, the books and the statues? Where's Alistair Cooke in a Chippendale chair? Russell Baker in a tweedy jacket?

Starting last Sunday, "Masterpiece Theatre" (9 p.m., WNET/13) arrived in, as marketers like to say, a totally new package. Instead of the familiar journalists who hosted the dramas for 33 of the series' 37 years, viewers saw actress Gillian Anderson ("Bleak House," "The X-Files") posed against a crimson, minimalist background. There was new theme music. Pages of a stylized graphic book flipped by.

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Scrabulous Scrapped?

As Hasbro fights to get an online copycat of its Scrabble board game called Scrabulous yanked off the Internet, thousands of visitors to Facebook, where the game most famously lives, are lobbying to keep it alive and kicking.

Within hours of news of a potential Scrabulous scrapping hitting the Web, many bloggers and Scrabulous fans were up in arms over the news.

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Kellwood names George Sokolowski as chief marketing officer

Kellwood Co., a manufacturer and direct marketer of apparel, has named George Sokolowski as chief marketing officer and vice president of strategy.

In his new role Sokolowski will be responsible for strategic planning and tactics, brand development and positioning, consumer research, trend analysis, and building relationships with key multi-channel and web retailers.

Previously Sokolowski was employed as managing partner of SkyTop Advisors, a retail marketing advisory group. He also was executive vice president and chief marketing officer of The TJX Companies. Sokolowski replaces chief marketing officer Patrick J. Burns, who was promoted to group president of Kellwoods Lifestyle Alliance in September.

Kellwood owns and operates brands such as Hanna Andersson, No. 167 in the Internet Retailer Top 500 Guide.


Motorola Honored with Multiple Awards at CES

Innovative, new mobile devices and accessories from Motorola (NYSE: MOT) were among the most honored at the 2008 International Consumer Electronics Show. ROKR E8 received four prestigious awards including the CNET Peoples Voice Award, while the MOTOROKR S9 and Motorola T815 each took top honors in the 2008 CES Best of Innovations Design and Engineering Award and Bluetooth Special Interest Group Award, respectively. With an additional eight Motorola products receiving honorable mentions, Motorola will clear the mantle for 14 new awards and accolades from CES.

The honors and accolades bestowed upon Motorola at CES underscore our strategy of creating authentic, personal mobile experiences that fit into and enhance consumer lifestyles, said Jeremy Dale, vice president, global marketing, Motorola Mobile Devices.



 

 

 

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