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Longrich
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Longrich (Chinese: 隆力奇; pinyin: Lónglìqí:) Bioscience Co., Limited is a multinational company that sells health, organic food, nutritional supplements, beauty, home care and pet care products. Longrich operates under its holding company Jowell Global.
Key Information
History
[edit]The company was founded in 1986 by Xu Zhiwei (俆之伟), producing a variety of snake products to consumers in China and other countries.[2] After attaining significant growth, he expanded into cosmetics manufacturing.[3][4][5][6] Since the 1990s, Longrich has been very influential in the Chinese cosmetics industry.[7][8] Longrich has been an OEM (original equipment manufacturer) and ODM (original design manufacturer) for some established multinational brands. Longrich researches, develops and manufactures a wide range of products through its corporate divisions across the globe and its main manufacturing plant at the Bio-Industrial Park, Jiangsu province of China. The Industrial Park covers an area of more than 2000 MU (about 500 acres). Longrich's research and development centers are located in the US, Japan, France and other parts of the world.[2][9]
A manufacturing plant is under construction in the Lekki Free Trade Zone of Lagos, Nigeria.[10][11][12][13][14]
Business model
[edit]Longrich sells its products to end-users through a multi-level marketing (MLM) model. Longrich distributors can potentially make income by directly selling to people and also receive a commission on wholesale purchases made by people they recruit into the distribution network. Longrich distributors must purchase varying rates on a pro-rata basis either independently or as a team for starter kits to qualify. In addition, distributors can be compensated by selling the products in retail outlets. Longrich's affiliated companies and distributors operate in over 50 countries and territories globally.[15][16][2]
References
[edit]- ^ "2018 Global 100 List of top Direct Selling Companies in the World based on 2017 Revenue". Direct Selling News. February 24, 2019. Retrieved August 18, 2021.
- ^ a b c "Longrich". Retrieved August 20, 2021.
- ^ "He's Out to Charm With Snake Products : China: Xu Zhiwei's firm sold $14.6 million worth of accessories, food and cosmetics made from the reptile in '94. He's hoping to build a global empire". Los Angeles Times. July 10, 1995. Retrieved August 19, 2021.
- ^ LIU WEILING; DIAO YING. "Cutout for success". China Daily).
- ^ Se-jin Chang (2013). Multinational Firms in China: Entry Strategies, Competition, and Firm Performance. Oxford University Press. p. 70. ISBN 9780199687077.
- ^ Daniel F. Spulber (2007). Global Competitive Strategy. Cambridge University Press. p. 64. ISBN 9781139467117.
- ^ Leila Fernandez-Stembridge; Juan Antonio Fernandez (2007). Top 10 cosmetics enterprises (China's State Owned Enterprise Reforms: An Industrial and CEO Approach). Routledge Studies in the Growth Economies of Asia. ISBN 9781134142903.
- ^ Christopher S. Tang; Chung-Piaw Teo; Kwok-Kee Wei (2007). Market share of skincare products in China (Supply Chain Analysis: A Handbook on the Interaction of Information, System and Optimization Volume 119 of International Series in Operations Research & Management Science). Springer Science & Business Media. p. 8. ISBN 978-0-38-77524-02.
- ^ Yang Feiyue (May 5, 2018). "Marketing ploy proves that success is more than skin deep". China Daily.
- ^ Chika Otuchikere (June 25, 2021). "Chinese firm to build AI production line in Lagos". BusinessDay. Retrieved August 19, 2021.
- ^ Benneth Joshua (June 25, 2021). "FG seeks technology transfer from China". Daily Independent.
- ^ Mudiaga Affe (November 22, 2019). "Longrich to produce for multinationals from Lagos factory". Retrieved August 20, 2021.
- ^ Gabriel Olawale (April 13, 2021). "Longrich factory in Nigeria set for operation, to employ 1000 youths". The Vanguard. Retrieved August 20, 2021.
- ^ Olukayode idowu (June 25, 2021). "Consul General of Nigeria in Shanghai, China calls for closer cooperation with Longrich". Sunrise. Retrieved August 20, 2021.
- ^ Thomas DuBois; Huaiyin Li (2016). Agricultural Reform and Rural Transformation in China since 1949 (Historical Studies of Contemporary China. BRILL. p. 22. ISBN 9789004322493.
- ^ "Face Cream Market 2021 Present Status, Demand By Regions, Manufacturers Analysis: Beiersdorf AG, Coty Inc., Jiangsu Longliqi Biotechnology Co., Ltd., Johnson & Johnson, Kao Corporation, L'Oral S.A., Reckitt Benckiser Group Plc" (Press release). Market Watch. July 23, 2021. Retrieved August 20, 2021.
External links
[edit]
Longrich
View on Grokipediafrom Grokipedia
Longrich, officially known as Jiangsu Longrich Bioscience Co., Ltd. (Chinese: 隆力奇; pinyin: Lónglìqí), a subsidiary of Jowell Global Ltd.,[1] is a Chinese multinational corporation specializing in the research, development, manufacturing, and distribution of personal care products, healthcare supplements, daily chemicals, and cosmetics.[2] Founded in 1986 by Xu Zhiwei, the company initially focused on snake-derived products before expanding into broader bioscience and wellness sectors. Headquartered in the Longrich Industrial Park in Changshu, Jiangsu Province, it employs nearly 10,000 people, with over 35% holding advanced degrees, and operates through a direct selling business model.[2][4]
The company has grown into one of China's largest firms in its field, investing heavily in innovation with eight research institutions, including a postdoctoral center and collaborations with Tsinghua University.[2] Its product portfolio spans 17 series, encompassing skincare items like snake oil-based creams, oral care, household cleaners, nutritional supplements such as Cordyceps capsules, and pet care products, many of which have received awards for quality.[2][4] Longrich emphasizes natural ingredients and advanced technology, holding certifications like ISO9001 and ISO14001, and has registered trademarks in 138 countries.[2]
Globally, Longrich exports to more than 60 countries and maintains branches in over 30, aligning with China's "One Belt, One Road" initiative for further expansion.[2] By 2015, it established its first U.S. branch, marking entry into the American market, and continues to prioritize sustainable growth in healthcare and personal care sectors.[5]
History
Founding and early development
Longrich, originally established as the Jiangsu Longliqi Group Co., Ltd., was founded in 1986 in Changshu, Jiangsu Province, China, by Xu Zhiwei, a local entrepreneur who began with a small workshop producing health supplements derived from natural ingredients such as snake powder.[6] Initially, the company's focus centered on dietary supplements aimed at health and wellness, with the Longliqi Snake Powder Capsule receiving approval as one of China's first legalized functional health foods in 1996, marking an early milestone in product validation.[6] Under Xu Zhiwei's chairmanship, the enterprise emphasized innovative formulations rooted in traditional Chinese medicine to address nutritional needs.[6] In 1997, the formal structure of Jiangsu Longliqi Group was established, solidifying its operations in the biological technology sector.[6] By 1998, the company transitioned into manufacturing personal care products under the Longrich brand, launching its first three signature skincare items on March 9, which signified entry into the cosmetics industry and diversified its portfolio beyond supplements.[6] This shift was driven by growing market demand for hygiene and beauty products, with initial production focusing on basic items like cleansers and lotions for everyday maintenance.[6] From its inception, Longrich placed a strong emphasis on research and development in cosmetics and healthcare, establishing dedicated facilities to innovate product efficacy and safety.[2] By the early 2000s, these efforts propelled the company to become one of China's largest firms in the daily chemicals sector, recognized for its advanced technological capabilities and production scale.[2][6]Expansion and key milestones
Following its establishment as a domestic manufacturer in 1986, Longrich transitioned into multi-level marketing in 2009, following the receipt of its direct selling license from China's Ministry of Commerce on July 22, becoming the 24th company to receive one.[6] This move propelled its growth from a China-focused enterprise to an international direct selling powerhouse. By the early 2000s, the company had begun exporting products and building a global distributor network, setting the stage for widespread adoption of its cosmetics and healthcare offerings. On August 8, 2009, Longrich launched its first direct selling operations.[6] By 2010, Longrich had solidified its position as one of China's leading companies in the cosmetics and healthcare sectors, with recognition including its products being appointed for the Shanghai World Expo Suzhou Pavilion and selection as one of the top ten profitable enterprises in cosmetics manufacturing. At this point, the company had developed over 1,000 products, demonstrating substantial innovation in personal care and wellness categories. This domestic dominance provided the foundation for further international scaling, with initial exports to Southeast Asia and other regions.[7][6] Key milestones in the 2010s highlighted Longrich's accelerating expansion. The company established its first research and development center in 2000 and added advanced facilities throughout the decade, including multiple institutions like the Longrich Postdoctoral Research Center, to support product innovation. In 2011, Longrich officially adopted its English brand name to facilitate global branding efforts. Around the same time, Longrich rebranded its holding entity as Longrich Bioscience Co., Ltd., and diversified into organic foods and cookware, broadening its portfolio beyond core cosmetics and health items.[6][2] In 2018, Longrich achieved notable international recognition, ranking 24th on the Direct Selling News Global 100 list of top direct selling companies worldwide, based on $1 billion in 2017 revenue.[8] This period also saw continued investment in R&D and manufacturing, including a 600 million RMB intelligent factory, reinforcing its competitive edge. By 2025, Longrich's multi-level marketing model had enabled operations in over 60 countries, according to company reports.[2]Products
Personal care items
Longrich's personal care lineup emphasizes everyday hygiene and skincare solutions formulated with natural ingredients to promote skin health and freshness. These products are designed for routine use, prioritizing affordability and accessibility, particularly in emerging markets where cost-effective, high-quality options are in demand.[9][10] The range includes toothpastes enriched with herbal extracts, such as the White Tea Multi-Effect Toothpaste, which incorporates white tea and xylitol to protect gums, strengthen teeth, whiten enamel, and combat bacteria while freshening breath.[11][12] Bathing soaps, exemplified by the Bamboo Charcoal Soap, utilize bamboo charcoal for its anti-bacterial properties, helping to soften skin and maintain cleanliness without harsh chemicals.[13] Deodorants like the Anti-Dew Roll-On provide effective odor elimination and sweat reduction through a skin-friendly, non-sticky formula that allows underarm breathability while offering a cooling, refreshing sensation suitable for all skin types.[14][15] Hand and body creams, such as the Rejuvenating Body Lotion featuring snake collagen, deliver deep nourishment to repair rough, wrinkled skin, lock in moisture, and reduce scars or stretch marks for a supple, youthful appearance.[16][17] Key formulations highlight natural elements like cereal extracts and bamboo charcoal, which contribute to skin softening, prolonged freshness, and anti-bacterial efficacy across the product line.[13][18] Innovations include rejuvenating lotions targeting rough skin through collagen and extract blends for enhanced hydration and repair, as well as 2-in-1 shampoos/conditioners that combine cleansing with conditioning using EMP protein technology to nourish the scalp, eliminate dandruff, and repair damaged hair in a single step.[19][20]Health and wellness offerings
Longrich's health and wellness offerings include a range of nutritional supplements designed to support internal health, such as teas and capsules rich in antioxidants and essential nutrients. The company's green tea products, including Xinchang Tea and NutriVRich variants, incorporate natural ingredients like Chinese yam rhizome, semen raphani, poria cocos, and cassia seed, which are claimed to facilitate digestion, promote detoxification, and boost immunity through their antioxidant properties.[21][22] Similarly, Cordyceps Militaris capsules serve as a dietary supplement, purportedly enhancing energy levels, improving blood circulation, and supporting immune function via advanced enrichment processes derived from traditional formulations. Vitamin C chewable tablets provide 213 mg per serving to address deficiencies, aiding overall vitality and antioxidant defense without artificial additives.[23] In the realm of healthcare products, Longrich offers items like mosquito repellents formulated with natural essences and 5% DEET for up to eight hours of protection against bites, delivering a cooling sensation and pleasant fragrance while avoiding harsh synthetic irritants.[24] The Superbklean Magnetic Sanitary Napkins, a notable variant, feature anion and far-infrared technologies alongside magnetic strips, which are said to relieve menstrual discomfort, improve circulation, eliminate odors, and provide antibacterial benefits through eight-layer absorption and 360-degree leak-proof design.[25] These products emphasize organic sourcing and gentle, chemical-free compositions to minimize skin irritation. Drawing from elements of traditional Chinese medicine, Longrich's portfolio incorporates herbal tonics and organic health foods for holistic wellness, such as sea buckthorn berry oil softgels that support nourishment and vitality with nutrient-dense profiles.[26] Teas like Tianjiang Tea blend premium green tea with herbal components for detoxification and metabolic support, positioning the brand toward health-conscious consumers seeking preventive, natural internal health solutions without reliance on synthetic chemicals.[27] This approach aligns with broader wellness goals, focusing on immune enhancement and energy restoration through verifiable natural ingredients.Business Model
Multi-level marketing framework
Longrich adopted a multi-level marketing (MLM) framework in the late 2000s as a direct sales model, enabling independent distributors to sell products directly to consumers and recruit additional distributors to build sales networks.[28] This approach was formalized following the company's receipt of a direct selling license from China's Ministry of Commerce in July 2009, which allowed expansion of its distribution system beyond traditional retail channels.[28] The model emphasizes personal relationships and grassroots promotion, permitting participants to operate flexibly on a part-time or full-time basis without fixed schedules.[29] The MLM structure is organized into a hierarchical system of distributor levels, progressing from entry-level positions such as Q-Silver affiliates to advanced ranks including Silver, Gold, Platinum, and culminating in Star Director tiers based on accumulated sales volume and downline team development.[30] Advancement requires meeting point value (PV) thresholds through personal and team purchases or sales, fostering a layered network where higher-ranked distributors oversee and support lower levels. Note that specific PV requirements and bonus percentages may vary by country.[30] Unlike conventional employment, there are no mandatory sales quotas or penalties for underperformance, allowing participants to engage at their own pace and scale, which sets the framework apart from rigid retail environments.[29] Integrated closely with Longrich's manufacturing operations, the MLM framework provides distributors direct access to over 2,000 products across categories like personal care, health supplements, and household items, sourced straight from the company's production facilities.[31] This vertical integration ensures product availability and quality control, positioning the model to prioritize genuine consumption and retail sales alongside network growth rather than recruitment in isolation.[2]Compensation structure
Longrich's compensation structure operates within a multi-level marketing framework that combines elements of binary and unilevel plans, allowing distributors to earn from personal sales and downline team performance. Distributors achieve entry levels such as Q-Silver (60 PV), Silver (240 PV), Gold (720 PV), and Platinum VIP (1680 PV) through product volume (PV) accumulation from purchases or sales, with no mandatory initial investment beyond acquiring qualifying products. Retail margins provide direct earnings on personal sales, typically ranging from 21% to 45% on repeat orders and retail transactions, emphasizing product consumption over recruitment.[32] Income from team overrides includes weekly performance bonuses of 8% to 12% on the two highest-performing legs in the binary structure, development bonuses of 10% on direct recruits, and leadership matching bonuses up to 45% from up to 12 generations in the unilevel sponsor tree, provided a minimum of 30 PV is maintained monthly. Additional matrix bonuses offer 4.5% on volume from 15 layers in the placement tree, while breakaway bonuses reward 21% to 45% on excess performance beyond personal volume in the sponsor tree. Super Director bonuses provide 10% on first-level qualified accounts and vertical development incentives for building higher ranks.[32] Recruitment incentives include referral bonuses for enrolling new distributors, contributing to overall team growth without requiring upfront fees separate from product acquisition. Leadership pools distribute shares of company-wide volume, and top performers qualify for global incentives such as 1% of worldwide PV as redeemable points (valued at $100 each), plus travel perks (1% allocation), car awards (1%), and housing funds (0.5%). Payouts occur weekly via bank transfer, with commissions potentially reaching 40-50% in combined retail and override earnings when focusing on sustained product sales and repeat orders from downline networks. This model promotes sustainability through passive income streams generated by ongoing consumer product use, such as monthly reorders for health and personal care items.[32][33]Operations
Manufacturing and research facilities
Longrich's headquarters and primary manufacturing facilities are situated in the Longliqi Biological Industrial Park in Changshu, Suzhou, Jiangsu Province, China. This expansive complex, covering over 2,000 mu (approximately 133 hectares), houses state-of-the-art production plants dedicated to daily chemicals, cosmetics, and healthcare products.[34][35] The park includes an intelligent manufacturing facility established with a 600 million RMB investment, aligning with national initiatives like "Made in China 2025" and Germany's Industry 4.0 standards.[2][34] The company's research and development efforts are centered in China, where it operates the largest and most advanced R&D hub in its sector, supported by eight global centers including those in the United States, Japan, and France, as well as a joint facility with Jiangnan University. Employing nearly 10,000 people overall, with over 35% holding undergraduate, postgraduate, or PhD qualifications, Longrich dedicates significant resources to innovation in natural ingredient formulations and product development. This infrastructure has yielded 36 invention patents (including one in the US), 4 utility model patents, and contributions to 2 industry standards and 63 product standards, often through participation in national programs like the 863 National Program and Torch Program.[2][36] Technological advancements at these facilities feature automated manufacturing lines in smart factories, enabling efficient production of diverse product lines. Quality control adheres to international standards, with certifications including ISO 9001 for quality management, ISO 14001 for environmental management, ISO 22716:2007/GMPC for good manufacturing practices in cosmetics, and BRC for consumer products. Emphasis is placed on eco-friendly processes, such as resource-efficient operations compliant with ISO 14001, to minimize environmental impact during production.[2] These facilities support substantial annual output, including a capacity of 20,000 tons for cosmetics and strong production volumes for items like shampoo, shower gel, and toothpaste exceeding 10 million units annually, facilitating global distribution through international subsidiaries. By the 2010s, Longrich diversified its manufacturing into furniture and cookware, producing high-quality items such as flooring panels, white wood furniture, and energy pots at dedicated plants within the industrial park.[37][34]Global reach and distribution
Longrich has established a significant international footprint, with trademarks registered in over 138 countries worldwide. As of 2023, the company operates through branches and representative offices in more than 30 countries, with exports reaching over 60 markets.[2] This global presence is supported by subsidiaries and distributor networks, particularly in key emerging economies.[2] In Africa, Longrich maintains strongholds through established operations in countries such as South Africa, Nigeria, Ghana, Cameroon, and Gabon, where local branches facilitate market entry and product availability. Distributor networks extend this reach to additional nations like Zambia, featuring stockist offices that serve as hubs for sales and recruitment. In Asia, the company has a robust presence in Thailand, Malaysia, Singapore, South Korea, the Philippines, and the United Arab Emirates, leveraging regional branches for efficient market penetration. European operations include branches in Russia and Ukraine, and an R&D center in France. Longrich International (UK) Ltd., a former subsidiary in the United Kingdom, was dissolved on 11 November 2025. In the Americas, activities are centered in the United States through a dedicated branch. These 15+ key markets are bolstered by partnerships, including OEM/ODM collaborations with global firms, enabling localized production and supply chain integration.[2][38][39] Distribution occurs primarily through multi-level marketing (MLM) networks, where independent distributors handle direct-to-consumer sales, supported by the company's logistics infrastructure for product shipping and inventory management. Local branches provide training and resources to distributors, ensuring alignment with regional regulatory requirements and consumer needs. This model has driven Longrich's growth from a primarily domestic operation in the 2000s to a multinational enterprise, with emerging economies in Africa and Asia contributing substantially to its international revenue streams.[2][40]Controversies
Legal disputes
In 2019, the Bank of Namibia declared Longrich Bioscience an illegal financial scheme under the Banking Institutions Act, citing its pyramid-like structure and lack of legitimate product sales as the primary concerns.[41] This ruling followed an investigation into the company's operations, which revealed no valid banking license or compliance with financial regulations, resulting in an immediate ban on all activities and a directive for promoters to cease operations in the country.[42] The decision aimed to protect consumers from potential financial losses associated with the scheme.[43] In Botswana, a 2016 scandal involving distributor Elinah Tai led to investigations after she allegedly swindled millions of pula from participants through unauthorized recruitment and sales practices under the Longrich banner.[44] The Directorate on Corruption and Economic Crime raided Longrich offices in Gaborone, seizing assets and prompting the company's international headquarters to launch internal audits into Tai's operations as their Botswana consultant.[45] This incident highlighted regulatory scrutiny over distributor misconduct and contributed to broader concerns about the company's oversight in the region.[44] The National Drug Authority in Uganda issued a warning in 2012 against Longrich East Africa's "SuperbKlean Magnetic Energy" sanitary pads, which were promoted with unverified health claims such as alleviating menstrual cramps and skin irritation through supposed magnetic properties.[46] Tests conducted by the Uganda National Bureau of Standards confirmed the pads contained no magnetism, leading to restrictions on their marketing and sales due to misleading labeling and non-compliance with product safety standards.[46] The NDA emphasized its authority to regulate such claims, requiring all health-related products to undergo licensing before promotion.[47]Pyramid scheme accusations
Longrich has faced accusations of functioning as a pyramid scheme, primarily due to its multi-level marketing model that prioritizes distributor recruitment alongside product sales. In April 2019, the Bank of Namibia declared Longrich Bioscience an illegal financial scheme with undesirable practices, leading to widespread claims that its operations resembled a pyramid structure reliant on continuous enrollment rather than genuine retail sales.[48] The company responded by denying any pyramid scheme involvement, insisting it is a legitimate direct-selling enterprise centered on health and personal care products.[48] Specific scam reports have emerged involving independent distributors, tarnishing the brand's reputation. In July 2023, South African businesswoman and TV personality Happy Simelane faced allegations from alleged victims of defrauding them of millions through exaggerated earnings pledges tied to Longrich recruitment, with claims that the scheme preyed on vulnerable individuals seeking financial independence.[49] Such cases have amplified broader criticisms that Longrich's model encourages overpromising passive income, resulting in losses for lower-level participants despite the company's assertions of ethical practices.References
- https://www.[crunchbase](/page/Crunchbase).com/organization/longrich