SINGAPORE (Dec 3): Best World International, which sells a little-known brand of skincare through a multi-level marketing (MLM) scheme, saw its share price rocket from just $1.21 on Aug 21 to $2.27 on Nov 22. That’s because its business model is very attractive to investors owing to the low inventory, low capital expenditure, low debt and high growth.

The global direct selling market posted US$190 billion ($261.1 billion) in retail sales in 2017, recording a three-year compound annual growth rate (CAGR) of 8%. It is expected to maintain this growth mainly through the performance in emerging markets, particularly China. 

MLM is a sub-set of direct selling. Direct selling involves person-to-person selling and mainly consists of two key business models — single-level marketing and MLM. They are differentiated through the revenue streams they provide to participants, that is, distributors and parties contracted by the companies to sell their products.

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