Public Perception of Direct Selling

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DIRECT SELLING ASSOCIATION
29 Floral St. London WC2E 9DP
Tel: 020 7497 1234 Fax: 020 7497 3144
E-mail: info@dsa.org.uk
Website: www.dsa.org.uk
The Direct Selling Association Limited.
Registered office as above. Registered in England Number 851537 Member of FEDSA – Federation of European Direct Selling Associations Member of WFDSA – World Federation of Direct Selling Associations Direct Selling – briefing on world wide channel of distribution October 2005 The business method

· Direct selling is a channel of retail distribution is which, through personal explanation and demonstration by direct sellers, orders for goods and services are obtained in face to face contact with consumers - away from normal retail business premises and normally in the homes of consumers;

· Direct sellers are predominantly self employed and work part time. They obtain customer orders, place orders with their company and, a little later, deliver the goods and collect payment from their customers;

· Although direct selling pre-dates all other distribution channels, it first became the basis of organised business in the mid-19th century – in the US;
· Although direct selling companies/organisations ( DSOs ) may use a wide range of marketing methods, the key difference between direct selling and direct marketing is that, in direct selling, orders are primarily obtained in face to face manner; · Face to face sales are most commonly made on a person-to-person basis, but the method also embraces ‘party sales', where direct sellers make demonstrations to groups of consumers in the home of one of them;

· The products sold by DSOs cover a wide range of personal and household goods. With the exception of fresh foods, large items of furniture and white goods, the range is similar to that sold through department stores;

· The growing range of direct sold services includes utilities, telecoms and financial services - where the opportunity for personal explanation has proved to make the direct selling channel more cost effective than other direct marketing methods; · Direct selling is uniquely able to create markets for novel and innovative products where advertising alone is unable to generate demand in supermarkets and other retail outlets. ( historically, the current retail markets for vacuum cleaners, washing machines, plastic kitchen storage containers and others, were all first created through direct sales ); · Where today's major retail store groups demand substantial advertising commitments by their suppliers, as a condition for distribution and shelf space, direct selling provides opportunities for new businesses - particularly in niche markets. Direct selling – a global business

· DSAs, affiliated to WFDSA, are now established in 60 world wide markets and, in 2004, accounted for collective sales of US$ 93 billion – 70% of the total direct sales channel; · Direct selling businesses now operate in 170 world wide markets; · Over 50% of world wide direct sales are accounted for by multi-national corporations; · In the US, Western Europe, Japan & Australia, direct selling accounts for 0.70% to 1% of national Gross Retail Product. In some markets, it is approaching 3% of GRP; · In terms of direct sales per home per annum, the world's most productive direct selling markets are Japan and Australia;

DIRECT SELLING ASSOCIATION
29 Floral St. London WC2E 9DP
Tel: 020 7497 1234 Fax: 020 7497 3144
E-mail: info@dsa.org.uk
Website: www.dsa.org.uk
The Direct Selling Association Limited.
Registered office as above. Registered in England Number 851537 Member of FEDSA – Federation of European Direct Selling Associations Member of WFDSA – World Federation of Direct Selling Associations · In 2005, as a result of the Gorbachev reforms, the fastest growing world wide direct selling markets are Russia, Eastern Europe, China and India; · Although still hampered by Government restrictions ( on multilevel organisation structures, personal selling methods, the...
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