Is Hereby Predicted That Beauty Products from MLM Companies Will Find Increased Regulations

Last year, I was talking to a multilevel marketing outsourcing firm which made products which were then sold to the down line of MLM companies. After looking over their operations it occurred to me that many of these products are coming from places like China because that's where they can be bought for the lowest price to maintain a high level of markup to pay the multiple commission or royalties to the up line. Even if the products were not all bought there, most of the components surely are.

Now then, because China has previously had problems with poisonous dog food, toxic protein feed, and the toothpaste issues, you can expect that those companies which produce their products in China and any non-US factory sponsored or partnered facility will have a tough time in the US in the future. Also, Procter & Gamble plans on expanding their beauty product lines in the future. That is a lot of lobbying power and corporate might pushing regulators to go after their competition.

There was an interesting article the other day in the Wall Street Journal on January 26, 2011; "At P & G, Beauty Makeover Needs to Prove It Has Legs," by Ellen Byron. Apparently during their last fiscal year Procter & Gamble brought in $27 billion in revenue during the last fiscal year, which is about one third of their total. Now then, remember that Procter & Gamble is a multinational conglomerate and they sell their goods globally, while doing the manufacturing anywhere they can, where it is the most profitable, most efficient, or makes the most sense.

Because of these issues, it seems to me that the multilevel marketing companies will find severe headwinds in the future competing on price against companies like Procter & Gamble which are expanding their organic beauty lines of products, as well as finding high seas from regulatory bodies which will be putting additional rules on imported products from emerging nations, under the guise of increased consumer protection regulations on products.

Whereas, it is very important to make sure that the consumers are protected, and the products that they use do not cause ailments, rashes of the skin, disease, toxicity, or health risks - not all of the regulations which will be put into place will actually be due to those concerns. That's not how the world works, or how the regulatory bodies in this great nation run their affairs.

Call me cynical if you will, but I see storm clouds on the horizon, and the big boys don't wish to relinquish their market share to anyone, especially a clan of network marketers who are already pushing the boundaries of ethics in their marketing. Indeed, I hope you will please consider all this.

[Under Full Disclosure: I am not involved in any MLM companies, I do not own Procter & Gamble stock presently, and I really don't care for the regulatory agencies in this country, let's just say I know too much].

Lance Winslow is an Online Author with 11 eBooks and a co-Author of Franchising 101. The latest sBook in the "Lance Winslow Small Business Series" is "How to Start a Boat Cleaning Business" http://search.barnesandnoble.com/How-to-Start-a-Boat-Cleaning-Business/Lance-Winslow/e/2940012121691/ (a Nook Book available at the Barnes and Noble Website). Lance Winslow is semi-retired and Founder of the Online Think Tank http://www.WorldThinkTank.net - You may contact Lance Winslow by email for dialogue, discourse, discussion, or debate on interesting topics.