Direct selling and multi-level marketing (MLM) companies are coming under increased scrutiny in India, with regulators accusing some big players like Amway and QNet of running pyramid schemes under the guise of direct selling businesses.
One relatively new entrant that has been garnering a lot of interest, both positive and negative, is Naswiz Retails Private Limited. This article analyzes if Naswiz Retails is a legitimate direct selling company or just another pyramid marketing scam based on business model, user reviews and complaints.
What is Naswiz Retails Private Limited?
Naswiz Retails Private Limited is an Indian direct selling company that was previously known as Naswiz Holidays Private Limited. It is promoted by Sonu Sharma, a well-known name in the MLM industry.
The company is registered with the Ministry of Corporate Affairs under directors Santosh Kumar Chandrakar and Manish Nanda. It’s CIN number is U52399DL2016PTC307914.
Naswiz Retails operates primarily in the herbal and apparel space through direct selling agents. It claims to provide an extra income opportunity to its members.
History of Naswiz Retails Pvt Ltd Company
Earlier, Naswiz Holidays Private Limited operated primarily in the travel and vacation packages space through its network of direct selling agents. It was started in 2012.
However, in 2019, Naswiz transformed their business by changing their website domain from Naswiz.com to myshopwiz.com. They also shifted their product focus from travel packages to apparel and other merchandise.
The earlier holiday packages business named Naswiz Holidays Pvt Ltd now seems to be non-operational, and most consumer complaints online are regarding holiday package services availed previously under their old Naswiz Holidays entity.
Naswiz Retails (Myshopwiz) Company Business Investment Plans
As a network marketing company, Naswiz Retails works on recruiting new distributors who are required to buy the company’s products upfront. These are offered to distributors at discounted rates compared to the MRP.
Distributors then earn income in two ways:
- By retailing these products to consumers and pocketing the retail profit margin
- By recruiting more members into their downlines and earning commissions on their purchase volume
This multi-level compensation plan allows members to earn various incentives and bonuses based on their sales and their team’s growth. These include:
- Direct sales commissions
- Group sales incentives
- Leadership bonuses
- Car, travel and house bonuses
- Repurchase income
To earn the higher bonuses, certain conditions related to personal sales volumes and downline recruits need to be met.
Naswiz Retails Pvt Ltd Products Lists
Naswiz deals primarily in herbal, and apparel packages merchandise. Their product portfolio includes:
- Suit and apparel combo packs
- Health and Herbal Products Package
- Homecare and consumer electronics
Packages are priced from Rs. 10,000 to Rs. 15,000. Critics allege these are overpriced and don’t offer much value.
*Before 2019, Naswiz was merchandise of Domestic and international holiday packages.
User Reviews and Complaints Against Naswiz Retails and Holidays Private Ltd
While the company claims to be a successful direct selling business, there are numerous complaints and negative reviews about Naswiz Holidays and Retails online. Some key consumer allegations highlighted in these user testimonials are:
False Promises of Income
- Members are promised large commissions quickly but unable to earn significant money
- Income claims of top earners are questioned as unrealistic and inflated
Unethical Sales Tactics
- Pressure to aggressively sell products and recruit, even to family and friends
- Misleading claims and improper promises made during enrollment
- Refusal to refund or buy back products when requested
Poor Quality Products & Services
- Substandard quality apparel products
- Overpriced holiday packages providing low grade hotels and services
- Several limitations and conditions make availing packages difficult
Pyramid Scheme Accusations
- The focus is more on expanding the member network through recruitment than actual sales
- Most money circulates to the top of the pyramid, not to low-level members
- More members lose money than earn; collapse inevitable
Several consumers have reported losing large sums after getting conned into joining Naswiz through hard-sell recruitment drives.
While some reviewers have praised their experience with the company, there are worries these may be planted reviews by the direct sellers themselves.
Is Naswiz Retails Pvt Ltd Real or a Fake MLM Scam?
While Naswiz cannot be termed an outright scam since it is a registered legal entity, there are several red flags in its operating model that raise suspicions of a pyramid marketing scheme designed to siphon off money rather than sell products or services.
Most authentic direct selling companies focus on product sales over recruitment. However, the numerous reviews accusing Naswiz of using deception and pressure tactics to expand its member base rapidly point to it being another MLM pyramid scheme in disguise.
| Company Name: | Naswiz Retails Private Limited |
| CIN Number: | U52399DL2016PTC307914 |
| Owner Name: | Santosh Kumar Chandrakar and Manish Nanda |
| E-mail: | [email protected] |
| Contact Number: | 011-48101010 / +91 9717033786 (Whatsapp) |
| Office Address: | NASWIZ RETAILS PVT LTD Unit No. 206, 208, 209, 210, 211, 212 NDM 2 Plot 1, 2, 3 Netaji Subhash Place North West Delhi-110034 |
| Website Url: | myshopwiz.com |
| Trust Score: | 2/10 |
| Fake or Genuine: | Legal Entity (However, Most Users alleges it a Fraud) |
How to Spot Pyramid Schemes and Stay Safe?
To avoid falling victim to such fraudulent multi-level marketing schemes, here are some tips:
- Research the company, promoters and reviews thoroughly online
- Understand the compensation plan; focus should be on product sales not recruiting
- Analyze the quality and pricing of products objectively
- Beware of claims that sound too good to be true
- Never pay large upfront fees; legitimate businesses don’t ask for it
- Walk away from high pressure sales pitches insisting you join instantly
Regulators advise caution as allure of easy money, lucrative incentives and flashy lifestyles are used to lure investors into pyramid schemes which eventually collapse causing huge losses.
Prudent research, objective thinking and ignoring hype are key to spotting and avoiding such fraudulent companies. If cheated, promptly file police complaints and legal action.
In conclusion, while Naswiz Retails Private Limited is an MCA registered direct selling company, its business model and the rampant allegations of unethical practices raise red flags about it being just another pyramid marketing scam. Consumers are advised caution.
FAQs
1. Is Naswiz Retails a legitimate company or a scam?
Naswiz Retails is an MCA registered legal entity, however there are several red flags indicating it could be a pyramid marketing scam disguised as direct selling – focus on recruitment over sales, money flows to top of pyramid, and numerous complaints of unethical practices and losses. Caution is advised.
2. How much salary/income can you earn with Naswiz Retails?
Though lucrative commissions and income claims are advertised, in reality very few members actually earn the promised high salaries at Naswiz Retails. Most struggle to recover their own investment.
3. What is the work you have to do at Naswiz Retails?
Distributors at Naswiz have to sell the company products directly to consumers. More importantly, they need to aggressively recruit more members into their team to progress in the MLM plan, which has led to unethical sales tactics.
4. Is Naswiz Retails Pvt Ltd banned or legal in India?
Naswiz Retails is not banned and operates legally as a registered direct selling company. However, regulators have issued advisories cautioning public about such Ponzi-like schemes.
