1. NETWORK MARKETING:A GLOBAL PERSPECTIVE Positioning QNET V-Indonesia 2012 Theme: I am M.A.D. (Making a Difference) Dr. Charles W. King

2. The Focus of this Session BUILD YOURBELIEF SYSTEM IN NETWORK MARKETINGPresentation Dr. Charles King, V-Indonesia 2012 3. The Central Theme:In Decade 2013-2023 Network Marketing will move into an AGE OF KNOWLEDGE AboutPresentation Dr. Charles King, V-Indonesia 2012 4. AGE OF KNOWLEDGE A STRONG BELIEF SYSTEM Regarding the Credibility of the Network Marketing IndustryIn-Depth Knowledge of the GENERIC NETWORK MARKETING PROCESS OF RELATIONSHIP MARKETINGA PASSION FOR AND KNOWLEDGE ABOUT the Companys PRODUCTS AND SERVICESA Comprehensive Understanding of the Companys UNIQUE MARKET POSITIONING STRATEGY INTERNAL POLICIES AND PROCEDURESPresentation Dr. Charles King, V-Indonesia 2012 5. Presentation Outline Network Marketing: A Global Perspective The Movement Toward Entrepreneurism World Wide The Rise of Developing Countries: Decade 20132023 Positioning of QIQNET in the the Evolving World ViewPresentation Dr. Charles King, V-Indonesia 2012 6. DIRECT SELLING: A Global ViewDirect Selling is: A $153.7 Billion (US$) Industry Worldwide (WFDSA 2011) Involving Over 91.5 Million Distributors Worldwide (WFDSA2011) 21 Countries Do Over $1 Billion (US$) in Direct Sales AnnuallyPresentation Dr. Charles King, V-Indonesia 2012 7. The Billion Dollar + Countries in Direct Selling: A Global Analysis 2011* CountryUS Retail Dollars (Billions)Sales People (Millions)United States$29.915.6Japan$23.93.4Korea$12.94.2Brazil$12.02.8Mexico$6.32.2France$5.10.5 *WFDSA Statistics Report, June, 2012 8. The Billion Dollar + Countries in Direct Selling: A Global Analysis 2011* CountryUS Retail Dollars (Billions)Sales People (Millions)Germany$3.70.3Russia$3.64.1Italy$3.40.4Malaysia$2.97.4Venezuela$2.91.0Taiwan2.84.7 *WFDSA Statistics Report, June, 2012 9. The Billion Dollar + Countries in Direct Selling: A Global Analysis 2011* CountryUS Retail Dollars (Billions)Sales People (Millions)Canada$2.20.7Thailand$2.115.6Colombia (LA)$2.01.2United Kingdom$1.90.4Argentina$1.60.6*WFDSA Statistics Report, June, 2012 10. The Billion Dollar + Countries in Direct Selling: A Global Analysis 2011* CountryUS Retail Dollars (Billions)Sales People (Millions)Turkey$1.21.2South Africa$1.21.4Peru$1.20.4Indonesia$1.08.2$153.791.5TOTAL GLOBAL*WFDSA Statistics Report, June, 2012 11. Direct Selling: A Regional Analysis 2011 Country% Sales by Region% Sales People by RegionAsia/ Pacific36.7%51.6%Africa/ Middle East0.8%N/AUS/ Canada33.2%26.5%Sou/ Cen America15.5%9.9%Western Europe9.5%2.5%Cen/ East Europe4.3%8.5%100.0%100.0%TOTAL GLOBAL 12. Presentation Outline Network Marketing: A Global Perspective The Movement Toward Entrepreneurism World Wide The Rise of Developing Countries: Decade 20132023 Positioning of QIQNET in the the Evolving World ViewPresentation Dr. Charles King, V-Indonesia 2012 13. Entrepreneur and Entrepreneurship...derived from the French word entreprende which means TO UNDERTAKE...Presentation Dr. Charles King, V-Indonesia 2012 14. Home Based Business: A Definition Going Solo Any Enterprise Where the Principal Administrative Activities Take Place in an Individuals Personal ResidencePresentation Dr. Charles King, V-Indonesia 2012 15. Home Based Business Statistics Home Based Business is a $427 Billion a Year Industry 150 Million People in North America Involve 34.336.6 Million home based businesses An estimated 8,500 new jobs created daily by Home Based Businessesthe NEW MIDDLE CLASS Economic EnginePresentation Dr. Charles King, V-Indonesia 2012 16. United States Home Based Business Statistics 70% of Home-Based Businesses Succeed for at Least 3 Years vs. 29% of Non-Home Based Ventures 12% of All Households Operate a Home- Based Business Forecast in 2013-2023: Over 50% of All Households Will Operate a Home-Based Business 48% of Operators are College GraduatesPresentation Dr. Charles King, V-Indonesia 2012 17. Home Based Business: Advantages Flexible Time Schedule Combine Family/Work Home Office Tax Deductions Independence/Self DeterminationPresentation Dr. Charles King, V-Indonesia 2012 18. Major Daily Challenges in a Home-Based Business Marketing and Selling for Cash Flow Time Management Financial Management/Book Keeping Minimizing Overhead Managing Multiple ResponsibilitiesPresentation Dr. Charles King, V-Indonesia 2012 19. The Home Based Business Movement Needs a How to do itStep-by-Step Operating ModelNetwork Marketing Can Provide That How-to-do-it StructurePresentation Dr. Charles King, V-Indonesia 2012 20. PRESENTATION OUTLINE Network Marketing: A global Perspective The Movement Toward Entrepreneurism World Wide The Rise of Developing Countries: Decade 20132023 Positioning of QIQNET in the the Evolving World ViewPresentation Dr. Charles King, V-Indonesia 2012 21. The Rise of the Rest United States Annual Growth 2-3 % Developing Countries 10-15 % American Companies Relocating in Developing Countries Evolution of World Power: United States -- The Super Power New World: United StatesA Power China, India, Brazil New Powers Global Direct Selling ChangingPresentation Dr. Charles King, V-Indonesia 2012 22. CONCEPT # 4: Major Population CentersCountryPopulationIndia1.220 BillionChina1.340 BillionAfrica Arab World (Arab League)1.038 Billion 358 MillionLatin America583 MillionTOTAL ESTMATED4.539 BillionPresentation Dr. Charles King, V-Indonesia 2012 23. Major Global Growth: The Outlook*Global Developing Markets 20%- 30% Middle/ Upper Middle ClassPopulation 908 Million- 1.362 BillionAlmost Population for either India or China *United Nations Estimates-2011Presentation Dr. Charles King, V-Indonesia 2012 24. QNET Market Sales Distributed By Region--2011 CountryAsia/ PacificRetail Sales % by RegionQNET Sales % by Region36.7%53%Southeast Asia19%Central Asia19%South Asia15%Africa/ Middle East0.8%37%US/ Canada33.2%N/ASou/ Cen America15.5%N/AEurope13.8%10%TOTAL GLOBAL100.0%100.0%Presentation Dr. Charles King, V-Indonesia 2012 25. Target Marketing the Arab World: Some Profile Data Average Per Capita GDP: $ 5,563 US $ 9th Largest Global Economy: $ 1.99 Trillion US$ Consumer Spending as a % of GDP: 49% in Arab World vs. 37% in China and 57% in India Not All Arabs are MuslimsFaiths Co-ExistCulture is Mixed Expats, Immigrants, South Asians, Etc.Presentation Dr. Charles King, V-Indonesia 2012 26. The Arab World: 25 Years and Younger 53% of Arab World is 25 Years old or Under 189 Million Arab World Millennials The Entrepreneurial Boom is reaching the Arab World The Arab World Millennials --90 million: Are looking for opportunity --31 thousand: Come to the United States to study The Cultural Demands of Early Marriage and HousingPresentation Dr. Charles King, V-Indonesia 2012 27. PRESENTATION OUTLINE Network Marketing: A global Perspective The Movement Toward Entrepreneurism World Wide The Rise of Developing Countries: Decade 20132023 Positioning of QIQNET in the the Evolving World ViewPresentation Dr. Charles King, V-Indonesia 2012 28. QNET in 2011 Sales Growth + 15-20% over 2010 QNET posted no significant penetration in top 10 Billion dollar Global Markets Middle East/ North Africa sales suffered due to hostility of Arab Spring Great growth potential across AsiaPresentation Dr. Charles King, V-Indonesia 2012 29. Four Phases Of Growth-2013FormulationConcentrationMomentumStability50TIMEWe Are Here! 30. The Power of the QI Group: QNETMain Subsidiary of Conglomerate: The QI Group The QI Group- Engaged in: Direct Selling/E-CommerceLifestyle and LeisureProperty/Resort ManagementTraining/Conference Operations TelecommunicationsPresentation Dr. Charles King, V-Indonesia 2012 31. QNETS CORE VALUES: S.T.I.R. Service Dedicated to service of othersResults OrientedTeamwork Dedicated to achieving highest results Work together as a unified team with a common goalIntegrity Conduct ourselves with utmost integrityPresentation Dr. Charles King, V-Indonesia 2012 32. QNETS MISSION: RYTHM Help individuals reach their potential and their goals by offering entrepreneurial opportunities and the highest quality products practices while practicing RYTHM RAISE YOURSELF TO HELP MANKIND (RYTHM)Presentation Dr. Charles King, V-Indonesia 2012 33. QNETS BUSINESS MODEL: Global Reach, Local Presence World Headquarters Hong Kong Regional Offices Affiliate Companies Franchise Companies AgentsPresentation Dr. Charles King, V-Indonesia 2012 34. QNETS PRODUCTS: Selection Criteria Innovation Exclusivity Quality Fit with QNET Philosophy Fulfillment of Market NeedPresentation Dr. Charles King, V-Indonesia 2012 35. QNETS PRODUCT GROUPS Luxury/EnergyEducationFashion AccessoriesWeight ManagementNutritionHome CarePersonal CareHoliday/ TravelPresentation Dr. Charles King, V-Indonesia 2012Collectibles 36. NETWORK MARKETING:A GLOBAL PERSPECTIVE Positioning QNET V-Indonesia 2012 Theme: I am M.A.D. (Making a Difference) Dr. Charles W. King