DIRECT BELLING: A GREAT OPPORTUNITY IN ECONOMIC UNCERTAINTY
Direct Selling
In these uncertain economic times, an opportunity that presents itself to workers is turning to direct sales as a means to make a living and have more control on their future. If you are presently looking for options or ways to reorient your career, don't disregard this one.
Here's a general overview of the dynamic segment of our economy called direct sales.
THE INDUSTRY
Direct sales boasted a vigorous 25% growth in the last two years - from $1.57 to $1.96 billion - and sustained a 10% to 20% increase over a decade. As a delivery channel, because direct sales isn't restricted to a permanent retail outlet, consumers can access hundreds of product choices :
• food and nutritional products
• cosmetics and skin care products
• jewelry
• telephone and Internet service ...among
• others
• clothing
• candles
• toys and educational items
Certainly, while non-store retail is common (catalogues, Internet sales, etc.), direct selling is the only personalized, interactive channel. And, for many who can't find what they need in local stores, or don't have Web access - 26% of direct selling consumers live in rural areas and 13% are over 65 in age - direct selling brings them goods they might not otherwise find.
Of the 60+ companies in Canada's robust direct sales industry, more than 2/3 are DSA members, including global firms with household names such as Avon, Mary Kay, Nu Skin, Quixtar, Shaklee, and Canada-based companies like Epicure Selections. The DSA also represents more than 600,000 Independent Sales Contractors (ISCs) whose sales were more than $1.96 billion.
BENFITS FOR DIRECT SELLERS
• 73% • flexibility
• 70% • money from direct selling
• 69% • ability to meet and socialize
• 65% • ability to earn more money
• 64% • said money pays for daily expenses
PROFILE OF DIRECT SELLERS
• 47% • age 35-49 / • 35% • age 50+
• 19% • age 18-34 / • 42% • live in suburban areas
• 32% • live in rural areas / • 26% • live in urban areas
• 49% • some college;university / • 27% • college/university grads
• 21% • high school grads
MAJOR PRODUCT GROUPS, PERCENT OF SALES
• 39.9% • personal care products (cosmetics, jewelry, skin care, etc.)
• 30.4% • home/family care products (cleaning, cookware, cutlery)
• 17.9% • nutritional/vitamins/wellness
• 6.3% • leisure/educational products (books, encyclopedias, toys/ games)
• 5.5% • services/miscellaneous/other
SALES STRATEGY
• 69.0% • individual / person-to-person sales
• 28.5% • party plan / group sales
• 1.7% • customer orders directly with firm (after face-to-face)
• 0.8% • other
LOCATION OF SALES
• 61.9% • in the home
• 15.6% • over the phone (after face-to-face)
• 10.8% • via the Internet
• 6.7% • in a workplace
• 3.9% • at a fair, exhibition, shopping mall
• 1.1% • other locations
ECONOMIC / COMMUNITY IMPACT
The direct sales labor pool — 3,900 permanent employees and 1.3 million direct sellers — represents a significant economic impact in Canada. In a recent Socio-economic Impact Study conducted by Ernst & Young on behalf of the DSA, it was estimated that, in addition to $966 million in direct revenue, almost half again - or $438 million - streams from indirect contributions of the direct selling industry, the spinoff as it buys from other Canadian companies (e.g. suppliers of merchandise, office supplies, shipping, etc.).
All this income helps to stimulate consumer spending. And, the combined contribution of additional tax payments was estimated at $716 million in 2003. When asked if they contribute money, goods or services to social programs, 89% of respondents said they contributed to human services and charities, and 20% of respondents contributed to education. In addition, direct sellers donated approximately $3.6 million to charitable causes in 2003 and again in 2004.
SOCIAL BENEFITS / PERSONAL DEVELOPMENT
The industry also enhances the quality of life enjoyed by many Canadians. As learned in a survey of direct sellers: product savings, work schedule flexibility, and the career's social nature are some of the major benefits. As for others: 65% indicated "improved professional skills", 78% cited "build self esteem", 70% noted "build better sales skills", and 70% said «build better business / management skills».
While jobs, income, investments, and taxes can be more easily quantified, social contributions are no less vital than economic impacts. Indeed, these achievements in individuals lives — increased self-esteem, self-confidence, organization and management skills — build a stronger future for direct sellers, their families, their communities, and their country. As one Canadian direct seller put it:
"(I have a) better understanding of personalities that help (my) personal and professional relationships, a more positive outlook, (am) better able to influence and help others, (have) better family relationships, increased knowledge, (and) better health."
Here's a general overview of the dynamic segment of our economy called direct sales.
THE INDUSTRY
Direct sales boasted a vigorous 25% growth in the last two years - from $1.57 to $1.96 billion - and sustained a 10% to 20% increase over a decade. As a delivery channel, because direct sales isn't restricted to a permanent retail outlet, consumers can access hundreds of product choices :
• food and nutritional products
• cosmetics and skin care products
• jewelry
• telephone and Internet service ...among
• others
• clothing
• candles
• toys and educational items
Certainly, while non-store retail is common (catalogues, Internet sales, etc.), direct selling is the only personalized, interactive channel. And, for many who can't find what they need in local stores, or don't have Web access - 26% of direct selling consumers live in rural areas and 13% are over 65 in age - direct selling brings them goods they might not otherwise find.
Of the 60+ companies in Canada's robust direct sales industry, more than 2/3 are DSA members, including global firms with household names such as Avon, Mary Kay, Nu Skin, Quixtar, Shaklee, and Canada-based companies like Epicure Selections. The DSA also represents more than 600,000 Independent Sales Contractors (ISCs) whose sales were more than $1.96 billion.
BENFITS FOR DIRECT SELLERS
• 73% • flexibility
• 70% • money from direct selling
• 69% • ability to meet and socialize
• 65% • ability to earn more money
• 64% • said money pays for daily expenses
PROFILE OF DIRECT SELLERS
• 47% • age 35-49 / • 35% • age 50+
• 19% • age 18-34 / • 42% • live in suburban areas
• 32% • live in rural areas / • 26% • live in urban areas
• 49% • some college;university / • 27% • college/university grads
• 21% • high school grads
MAJOR PRODUCT GROUPS, PERCENT OF SALES
• 39.9% • personal care products (cosmetics, jewelry, skin care, etc.)
• 30.4% • home/family care products (cleaning, cookware, cutlery)
• 17.9% • nutritional/vitamins/wellness
• 6.3% • leisure/educational products (books, encyclopedias, toys/ games)
• 5.5% • services/miscellaneous/other
SALES STRATEGY
• 69.0% • individual / person-to-person sales
• 28.5% • party plan / group sales
• 1.7% • customer orders directly with firm (after face-to-face)
• 0.8% • other
LOCATION OF SALES
• 61.9% • in the home
• 15.6% • over the phone (after face-to-face)
• 10.8% • via the Internet
• 6.7% • in a workplace
• 3.9% • at a fair, exhibition, shopping mall
• 1.1% • other locations
ECONOMIC / COMMUNITY IMPACT
The direct sales labor pool — 3,900 permanent employees and 1.3 million direct sellers — represents a significant economic impact in Canada. In a recent Socio-economic Impact Study conducted by Ernst & Young on behalf of the DSA, it was estimated that, in addition to $966 million in direct revenue, almost half again - or $438 million - streams from indirect contributions of the direct selling industry, the spinoff as it buys from other Canadian companies (e.g. suppliers of merchandise, office supplies, shipping, etc.).
All this income helps to stimulate consumer spending. And, the combined contribution of additional tax payments was estimated at $716 million in 2003. When asked if they contribute money, goods or services to social programs, 89% of respondents said they contributed to human services and charities, and 20% of respondents contributed to education. In addition, direct sellers donated approximately $3.6 million to charitable causes in 2003 and again in 2004.
SOCIAL BENEFITS / PERSONAL DEVELOPMENT
The industry also enhances the quality of life enjoyed by many Canadians. As learned in a survey of direct sellers: product savings, work schedule flexibility, and the career's social nature are some of the major benefits. As for others: 65% indicated "improved professional skills", 78% cited "build self esteem", 70% noted "build better sales skills", and 70% said «build better business / management skills».
While jobs, income, investments, and taxes can be more easily quantified, social contributions are no less vital than economic impacts. Indeed, these achievements in individuals lives — increased self-esteem, self-confidence, organization and management skills — build a stronger future for direct sellers, their families, their communities, and their country. As one Canadian direct seller put it:
"(I have a) better understanding of personalities that help (my) personal and professional relationships, a more positive outlook, (am) better able to influence and help others, (have) better family relationships, increased knowledge, (and) better health."