In recent days, the news that Atomy China is about to open for registration has drawn continuous attention within the industry.
On March 25, Atomy China announced that, as of 13:00 on April 1, membership registration and distributor applications would become available on the company’s official website. On March 26, Atomy China announced the launch of its official website. On March 28, Atomy China will hold an online briefing.
As an enterprise that has achieved great success in South Korea and other markets around the globe, thanks to its unique business model and philosophy, the official arrival of Atomy in mainland China has naturally put the company under the spotlight. There have thus been many questions in advance of its public unveiling, such as: What are the products? What are the prices like? What kind of business model has been adopted? How will distributors be managed?
Recently, Atomy China had an exclusive interview with Sinotide Magazine, during which it responded to many questions of public concern.
According to Atomy (China), after enrolling as a registered customer, the prices of products available for purchase will be about 15% – 20% lower than the retail price. If you wish to promote a product, you can apply to become a distributor and carry out business promotion based on the agreed contract terms. From one’s own behavior and business ethics to company norms, laws and regulations at a national level, businesses should be committed to integrity during operation as Atomy aims to go beyond satisfying customers to impressing them.
As for the products, some of them will be imported from South Korea, while others will be produced by the Atomy factory located in China and some will be overseas products directly delivered to customers through cross-border trade. Regardless of the supply method, all of the products will be from the Atomy brand. Atomy calls this its GSGS (Global Sourcing, Global Sales) strategy.
According to Atomy China, what matters most is what can be brought to customers, not through which channel or model it is delivered. Before it obtains a direct sales license, Atomy China will continue to adopt a distributor model. If it obtains a direct sales license in the future, it will engage in operations related to direct sales in accordance with Chinese laws and regulations.
“In the Chinese market, Atomy China will adhere to the philosophy of good prices for excellent products and bring to Chinese customers products that meet the requirements of “masstige (mass+prestige)” standard.
At the same time, Atomy China has made it clear that violation of the company’s policy is strictly forbidden. Those who disregard Atomy China’s guidelines and cause negative impact on the company and the Chinese society will be banned from member registration when spotted.
The exclusive price for members is approximately 15% – 20% less than the retail price.
Q: Starting from next month, membership registration and distributor applications will become available on the company’s official website. What is the difference between the two? How will distributors be managed in the future?
A: Atomy is committed to providing Chinese customers with high-quality, low-cost “masstige” products. When you register as a member of Atomy China, you will be able to purchase products from the official shopping mall at member exclusive prices, which are about 15% to 20% lower than the retail prices. Once you concur with the product and corporate philosophy of Atomy and become a loyal supporter, if you wish to promote a product, you can apply to become a distributor and carry out business promotion based on the agreed contract terms.
Atomy provides in-depth training on principle-first policy for its business distributors. “Observing Principles” is one of the three major cultures of Atomy. Both the company and business distributors must follow the principles in their business activities. Ranging from one’s own behavior and business ethics to company norms, as well as laws and regulations at national level, businesses should be committed to integrity in their operations. We plan to regularly educate distributors on principle-centric policy. We will start with business ethics and make sure distributors strictly abide by the company’s norms, as well as Chinese laws and regulations.
In order to provide good service to our customers, Atomy China plans to conduct “Serve in Humility” training for distributors. “Serve in Humility” is one of the mottoes of the company. Its significance lies in providing services to customers from the humblest position. We are committed to surpassing customer satisfaction and impressing them.
The goal of Atomy China is to build Atomy distributors in China into those with the best service manner.
Additionally, a distributor, as an independent legal entity, has a cooperative relationship with Atomy and they shall consciously abide by the requirements of national laws and regulations, as well as the company’s business rules. In case of any violation of the relevant agreements made with the company, Atomy will impose a corresponding penalty and distributors who commit a crime shall bear corresponding legal liabilities by themselves. In case of any impact or loss to the company, the company will also hold the distributor to account.
Q: In the morning of March 28, Atomy (China) will hold an online briefing. What will be on the agenda?
A: The main agenda includes the corporate culture and strategy of the company, exhibition norms and market maintenance, the registration process and some issues to be noted.
The products provided in three channels – all are Atomy products.
Q: According to the announcement, notification will be provided at a later date regarding the launch time of the official online shopping mall. How is the design of the official online shopping mall proceeding? Is there a mature model yet?
A: So far, the design of the official online shopping mall has been proceeding very smoothly and has almost been completed. Since Atomy’s establishment, its business objective has always been to be “a hub of circulation”. Goods and services are connected to consumers all over the world through Atomy, who acts as a hub. We call this GSGS (Global Sourcing, Global Sales) strategy. Although the project in China is still in its infancy, in the future, high-quality products discovered in the countries where Atomy already has a market presence will be sold in China. Meanwhile, the excellent products from China will also be exported to other countries.
Q: After the launch of the official online shopping mall, what are the product categories that will be offered, based on preliminary decisions? Will the products be made in China or South Korea?
A: After the opening of the official online shopping mall, the products that will be offered, based on preliminary decisions, will include skin care products, cosmetics products, personal care products, household products and food. Most of the products will be household necessities. During the initial stage, product variety may be limited, but in the future, more daily necessities will be added so that consumers can have access to Atomy products for all aspects of life.
As for the origins of products, some of them will be imported from South Korea and some will be produced in the Atomy factory located in China. Some will be overseas products directly delivered to customers through cross-border trade.
All products sold by Atomy China will be under the Atomy brand, making them subject to strict and thorough quality management and control by Atomy. Products that are not under the Atomy brand will not be sold at Atomy’s online shopping mall.
Q: Atomy China officially arrived in Yantai, Shandong Province in December 2016 and investments were made for the construction of a production base. Has the factory been put into production? Will the products manufactured be sold by the company itself or will the factory also act as an OEM?
A: Atomy (China) Co., Ltd. is a legally registered foreign-invested enterprise located in China. It is engaged in business activities in accordance with its approved business license and other relevant qualifications, on the premise of complying with Chinese laws and regulations.
After Atomy China arrived in Yantai, Shandong Province in 2016, it accelerated the construction of its production base. The first phase of construction has been completed. The factory mainly produces toothbrushes and kitchen supplies. It has obtained a production license and commenced with mass production.
At present, the second phase of the plant, which will be the Chinese headquarters building and a health supplement factory, is under construction. The second phase, the health supplement factory, is intended to localize products sold in South Korea and directly produce and sell them in China.
In addition, the long-term development plan of Atomy China is to build an Atomy industrial park in the Yantai China-South Korea Industrial Park, together with Atomy’s partnering companies.
At that time, Atomy will be able to make a greater contribution to regional economic development. As mentioned above, Atomy is pursuing its GSGS strategy. While Atomy China sells its self-made products, it plans to discover products with excellent quality in China. Such products will not only be sold in China, but will also be exported to the overseas markets where Atomy has entered, thus contributing to the national export industry. At present, we have begun to discover manufacturers with strong R&D capabilities. Atomy has always implemented a system of “One Partner Per Product”. For each product, Atomy only cooperates with one supplier, which enables favorable conditions for product quality assurance and is beneficial to the company, suppliers and consumers. This practice will continue in China.
Any model in line with the concept of “customer’s success” will be tried.
Q: Atomy is a well-known direct sales enterprise in South Korea, but Atomy (China) Co., Ltd. has not yet obtained a direct sales license in China. So, before obtaining a license, how will the company operate?
A: Trough traditional business, e-commerce, supermarkets, direct sales, etc. All are familiar sales models. None of them are necessarily better or worse. According to Atomy (China), models and channels are not the core of its business. What actually matters is what can be brought to customers. Can we make our products more cost-effective? Can we make it easier for our customers to buy our products? Is it conducive to the beneficial circulation of products? As long as it provides benefit to consumers and it conforms to the concept of “customer’s success”, and as long as it is a legal model, we may try it.
The businesses who distribute through Atomy should also be considered our most loyal customers and safeguarding the interests of customers is the same as safeguarding the interests of distributors who do business with us. Although the development of direct sales in China has been affected in recent years, it will grow more stable in the future through the correct guidance and management of the government. We have submitted the application for a direct sales license to the Ministry of Commerce and it is still under review. Before we obtain a direct sales license, we will continue with adoption of a distributor model. If we obtain the direct sales license in the future, we will engage in direct sales operations in accordance with Chinese laws and regulations.
Q: The secret to the rise of Atomy is absolute quality and absolute prices. Will you still adhere to this concept in the Chinese market? In making Atomy’s approach to China’s more mature online shopping market, will there be any price margin?
A: In the Chinese market, we will adhere to the product concept of good prices for excellent products and bring to Chinese consumers products that meet the requirements of “boutique goods for the masses”.
The company has always adhered to the concept that, at a similar price point, the quality of Atomy’s products should be superior to that of similar products; when the quality is the same, the price of the Atomy’s product should be more favorable. In making our approach to China’s mature online shopping market, the requirements for consumers to purchase products have not changed. Quality must be good and price must be reasonable, which coincides with our product concept. The price and quality of online products is a factor we measure and control. We are confident that we can bring more and more advantageous products to Chinese customers.
Q: At present, there are market players carrying out relevant business, but their statements are different from those of Atomy. How will you manage these people?
A: We did not expect the Chinese consumers to have such high expectations for us. We are very grateful for the recognition. We’ve also noticed that before the opening of the company, some individuals have engaged in advertising in the name of the company. The company has issued relevant statements about this many times. If those who have negative impact on the company or society by misinterpretation of the company’s policies and engagement in illegal advertising are found, they will be banned from registering as members. We also reserve the right to report and complain to the relevant authorities. At the same time, we hope that customers will actively report such activities to us so that we can jointly safeguard our hard-won market environment.
Text: Sinotide Reporter Wei Wangshu
Editor: Xia Mu