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Why
Does direct selling have a future?
12 JUNE 2017
While direct selling was already being emulated in the United States at the end of the 19th century with Avon and then after the Second World War with Tupperware, this fast-changing sector is attracting more and more customers and home sellers around the world. Today, one French person in five buys from home at least once a year. Elora, prêt-à-porter à domicile, takes a look at this thriving sector, which continues to attract new customers and adopt new codes.
Direct sales, a booming sector
As we mentioned in our article on the Direct Selling Federation, direct selling or door-to-door selling is considered to be one of the most dynamic economic sectors in the world, as Paul Southwortth, Managing Director of the UK Direct Selling Federation, explains.
In France, in 2015, Direct Sales accounted for sales of €4.04 billion, with 640,215 people working in the sector and a 3% growth in the workforce. On a global scale, the figures are impressive: sales generated by direct selling amount to no less than 183 billion euros with more than 103 million distributors!
It's a highly promising sector, revolutionising employment and remuneration, and Elora is part of it!
Why is the direct door-to-door sales sector so attractive?
From the buyer's point of view, door-to-door selling meets a real need on the part of customers who value a new, more personal and individualised way of consuming. Selling or buying from home satisfies this search for proximity that can't be found anywhere else. Taking part in in-home meetings means enjoying a moment of pure conviviality and education that reassures customers. In short, it's a positive experience that creates a bond of trust and exchange between sales advisers, hostesses and customers. One of the powerful levers of direct selling is recommendation, which takes place at every level of the relationship and enables exponential growth in the recruitment of sales advisers, hostesses and customers.
As far as home-based saleswomen are concerned, financial independence is the most important factor in their choice of this activity, as is the flexibility of their schedule.
As Paul Southwortth, Director General of the UK Direct Selling Federation, points out, " the future (of direct selling), I have to tell you, looks brighter than ever ".
The evolution of direct selling over time
The evolution of profiles and motivation in door-to-door selling
Home selling is attracting more and more people. Once made up of 100% women, this industry now attracts 20% of men (80% women), with an increase in the number of over-50s taking up jobs as VDIs (independent door-to-door salespeople). What's more, this distribution channel is attracting more young people, particularly graduates who are combining several jobs with an increase in the number of hours worked!
The very motivation for VDI status has changed over the years: whereas it used to be used more as a hobby, direct selling is now seen as a profession in its own right. according to Jacques Cosnefroy, General Delegate of the FVD, 30% of VDIs see it as a way of supplementing their income (between €100 and €500 a month), 30% of VDIs see it as a way of combining two jobs, and 40% of VDIs see it as a full-time occupation.
Changes in direct selling methods
As far as sales methods are concerned, changes were also noted, with 70% of European sales being made through direct interaction with the customer, in direct competition with the Internet channel, compared with 30% of European sales made through meetings. Whereas in the past, simple product demonstrations dominated the direct sales sector, the "workshop" format has become more attractive in 2017. Sales are becoming real live collaborative test areas, where everyone takes part in showcasing the product.
All these changes are contributing to the flourishing growth of this sector, which is estimated to be in double figures in Europe every year!
Not sure about becoming an Elora Home Sales Manager? Read our article on the 5 taboo questions we ask ourselves before taking the plunge.