Infinitus MLM (China): A Hybrid Business Model for Local and Global Success


Infinitus (China) is a Chinese herbal health product company developing, manufacturing, and distributing health food, skincare, personal care, and household products.

Partly due to Chinese regulatory requirements, the company operates using a hybrid business model, including direct selling, multilevel marketing, e-commerce platforms, and physical stores.

This has helped ensure its success in mainland China and several countries worldwide.

This in-depth analysis explores the interesting business model of Infinitus (China).



Section 1 – The Company

Infinitus Logo

In this section, we delve into the world of Infinitus (China), examining the company’s history, market position, and key data points.

What is Infinitus (China)?

Infinitus (China) Company Ltd. is one member of LKKHPG (the LKK Health Products Group), which in turn is a member of Lee Kum Kee Group.

Infinitus (China) is a Chinese herbal health product company that develops, manufactures, and distributes health food, skincare, personal care, and household products.

Within mainland China, it operates using direct sales, e-commerce platforms, physical stores, and service centers.

The MLM component only applies to the company’s global operations since multilevel marketing is illegal in China under the Direct Selling Management Regulations.

Market and performance

Infinitus (China) is a global player with operations in China, Taiwan, Hong Kong, Malaysia, Canada, Singapore, Thailand, the Philippines, and Kazakhstan. Plus, an e-commerce presence in South Korea and Australia.

The company invested an impressive RMB 3 billion ($445.5m) in setting up its production bases with a massive total area of over 550,000 m2. And it had revenues worth $4.50B in 2019, giving it the 4th rank in the DSN Global 100 top revenue-generating direct-selling companies.

Infinitus (China) was also ranked 45th among China’s 500 most valuable brands, with a brand market value of RMB 65.869 billion ($9.78B).

The company employs more than 3,000 corporate employees.

Related post: What is Forever Living?

History

Lee Kum Kee, Infinitus’ parent company, was established in 1888 to promote the excellent Chinese food culture.

In 1992, Infinitus was founded to promote Chinese wellness traditions and the Chinese medicine health industry.

They developed Chinese herbal health products using a combination of the Chinese health culture as the theoretical foundation and modern technology/ Western methods for research, demonstration, development, extraction, and processing.

Today, the company brands itself as a high-quality Chinese herbal health product company with health food, skincare, personal care, and household products. It expanded from China to:

  • Hong Kong, Taiwan, and Malaysia in 2010
  • Singapore and Canada in 2016
  • Thailand in 2018
  • Philippines and Kazakhstan in 2019
  • South Korean and Australian e-commerce in 2020

Who founded Infinitus (China)? (video)

Sammy Lee, the fourth generation of the Lee Kum Kee family, founded Infinitus (China) with his father, Lee Man-tat. Infinitus was set up as a core brand of the LKK Health Products Group under The Lee Kum Kee Group.

Who is the CEO of Infinitus (China)?

Mr Lam Yu is the CEO of Infinitus Global and the Vice Chairman of the Infinitus (China) Company Ltd.

Other key executives include Ms Sally Wang, the Director, and Mr Gary Huang, the Vice President.

Who is the owner of Infinitus (China)?

The Lee Kum Kee Group owns Infinitus (China). It’s a century-old Hong Kong enterprise.

The company was started by Lee Kum-sheung and is owned and managed by the Lee family.

Where is Infinitus’ (China) headquarters?

The headquarters of Infinitus (China) is located in Guangdong Province at the following address: 17F 12 Zhujiang West Rd Zhujiang New City Tianhe Dist Guangzhou, 510623 China.

The company has multiple other physical locations, including:

  • two production bases in Xinhui, Guangdong and Yingkou, Liaoning
  • 36 branches, 28 service centers, and over 5,000 exclusive stores in Mainland China

The company values and mission

Infinitus (China) states that they are guided by the core value of “Si Li Ji Ren,” which means considering every person’s interest before taking any action.

And the company’s mission is to develop high-quality Chinese herbal health products that meet people’s diversified needs for health, youth, vitality, beauty, and quality of life.

The company’s quality management principle is “100-1=0.” This ensures that international quality and safety standards are met through over a thousand tests.

Section 2 – Business Model

Amway business model

This section examines Infinitus’ marketing channels, sales systems, and the opportunity for independent sales representatives.

What marketing channel does Infinitus (China) use?

Infinitus (China) uses a hybrid business model that combines direct sales and e-commerce channels.

Within mainland China, the company uses the following channels for service consultations, marketing promotions, and product sales:

  • independent direct sellers and distributors
  • branches, service centers, and speciality stores
  • online platforms such as WeChat, websites and apps

Outside China, Infinitus uses multilevel marketing (MLM) as an extra marketing channel.

Infinitus’ compensation model explained

Chinese direct sellers have a simple two-part compensation plan:

  1. A 20% commission on each sale.
  2. A sales bonus based on the total personal sales, as indicated below.
Personal sales2,0004,0006,00010,000
Sales bonus2%4%6%8%

Outside China, independent distributors have various compensation options under an advanced MLM structure.

Although Infinitus doesn’t provide readily accessible details of its multilevel marketing program, various online sources have highlighted its key features.

Here are two diagrams illustrating the ranking structure (note that PPV means Personal Volume, GV means Group Volume, and OV means Organizational Value).

Infinitus MLM compensation plan (graphic)Pin

As shown, the position ladder features the following ranks:

  1. Intern Sales Supervisor
  2. Sales Supervisor
  3. Senior Sales Supervisor
  4. Intern Sales Manager
  5. Sales Manager
  6. Senior Sales Manager
  7. Sales Director
  8. Senior Sales Director
  9. Chief Sales Director

How many Infinitus (China) direct sellers and distributors are there?

Infinitus (China) claims to have a large network of distributors and direct sellers, with over one million distributors using their Easy Earn social e-commerce model.

The company provides a list of Chinese distributor profiles and names on its website but has yet to provide a similar list of its direct sellers.

How to make money on Infinitus (China) 

Within China, independent direct sellers and distributors only earn a commission from selling the products bought by customers whom they refer. They cannot earn from recruiting other direct sellers or from team sales.

On the other hand, the MLM structure outside China has multiple types of bonuses and commissions.

Here’s a brief overview (note that Infinitus doesn’t provide readily accessible details of its multilevel marketing program, but various online sources have highlighted its key features):

  1. Infinitus Basic Sales Bonus: A 2 – 10% commission rate based on you and your group’s generated sales.
  2. Infinitus Extra Sales Bonus: A 12.5% commission if both of your legs generate 10,000 GV.
  3. Infinitus Performance Bonus: If your OV is 10,000, you get an extra 1.25% which can increase to 6% if your team sells 4.5 Million.
  4. Infinitus Leadership Bonus: If your whole group achieves 10,000 GV, every leader gets an extra 10.5% bonus.
  5. Infinitus Market Bonus: Infinitus gives 1.1% of global revenue sales to qualified leaders. You can earn 0.1% up to 0.5% for each qualifying leg.

How much money can you make?

According to a statement of typical participant earnings from Infinitus Canada, an active distributor engaged in the plan for at least one year can expect to earn between CAD 49 and 964 annually. However, it’s important to note that individual earnings may vary and are not guaranteed.

For Chinese direct sellers, remuneration is capped at 30% of their personal sales based on regulatory restrictions.

How to become an Infinitus distributor or direct seller

In China, you must fulfill the following requirements to become an independent direct seller:

  • at least 22 years old, and someone who isn’t in a profession that’s not allowed to work part-time like civil servants
  • have a Direct Seller Certificate after training and examination
  • only carry out sales activities in the area where Infinitus’ branch is located

Outside China, you first need to pay a membership fee of about $24, which is also an annual fee. You should also buy a starter kit which may cost as much as $491 or more when signing up as a distributor.

To qualify for commissions, you must also meet monthly PPV targets (500 PPV). This can be through personal or customer sales.

How to sell Infinitus’ products

In China, a direct seller’s role is restricted to product introduction, ordering, and delivery to consumers.

Outside China, you can also buy products at a discount to sell at retail prices and make a commission from it.

How much does it cost to join Infinitus?

In China, there’s no fee required to become a direct seller.

Outside China, the costs include:

  • a membership fee of about $24
  • an annual fee of about $24
  • a starter kit which may cost as much as $491 or more
  • monthly PPV targets (500 PPV)

Section 3 – Products

Infinitus MLM products

This section explores Infinitus’ products, highlighting their unique selling proposition and other relevant information.

What does Infinitus (China) sell?

Infinitus (China) develops, manufactures and distributes Chinese herbal health products.

They offer seven major brands and more than 200 products, including health food, skincare, personal care, and household products.

Here are the main brands:

  • Infinitus Health Food: The line includes nutrient supplements.
  • Phytocare Personal Care: The line consists of shower creams, toothpaste, conditioners, shampoos, and breath sprays. 
  • Beautrio Skin Care Products: The line includes cleansers, creams, and whiteners.
  • Vitabelle Skin Care Products: The line includes lotions, cleansers, and creams
  • Benelife Health Care: The line includes pillows.

Where are Infinitus’ products made?

Infinitus manufactures its own products and has two production bases in Yingkou, Liaoning and Xinhui, Guangdong.

Are Infinitus’ products tested and certified?

It’s evident that Infinitus (China) strongly emphasizes testing and certifying its products to meet the highest quality and safety standards.

The company cooperates with institutions such as the French National Center for Scientific Research through the Hoffmann Infinitus Program and the University of Cambridge through the Cambridge Infinitus Research Centre (CIRCE) to gain insight into traditional Chinese medicine and improve product efficacy.

Infinitus also reveals that the company earned numerous international production certifications, including ISO9001:2008, HACCP, FSSC 22000, and GMP.

Lawsuits and independent reviews of Infinitus (China)

In 2018, an Infinitus (China) branch in Xian, Shaanxi province, was investigated for allegations that its products damaged a toddler’s heart.

Apparently, an employee exaggerated the products’ effectiveness to sell them to the girl’s family as an alternative to conventional medication.

To prevent such incidences by employees and sellers, Infinitus provides statements on its website that its health food products are not drugs and cannot replace them to treat diseases.

Moreover, in 2019, Infinitus and other “direct sales” firms were summoned by the Guangdong provincial government in China and warned against malpractice.

The firms agreed to sign a pledge not to deceive consumers about the therapeutic benefits of their products.

On the positive side, Infinitus has won numerous awards, including:

  • The Aon Best Employer – China 2017 (featured in the list for five years)
  • 2022 Awards – HR Asia Best Companies to Work for in Asia

Section 4 – FAQs About Infinitus (China)

Amway FAQ

This section covers any other unanswered questions about Infinitus (China).

Is Infinitus a multilevel marketing company?

Infinitus only operates as a multilevel marketing company outside China since MLMs are illegal in mainland China.

Is Infinitus a pyramid scheme?

Infinitus is legally registered in the countries where it operates, and pyramid schemes are illegal in these countries. Therefore, Infinitus isn’t a pyramid scheme based on legal requirements.

Can you trust Infinitus (China)?

Infinitus (China) has been operating since 1992 and has built a large network of distributors and a loyal customer base. All these are signs of a company that many people trust.

Sources

Author: Victor Nyorani

Victor Nyorani - Network Marketing Start

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