World Library  
Flag as Inappropriate
Email this Article

Direct selling

Article Id: WHEBN0010710185
Reproduction Date:

Title: Direct selling  
Author: World Heritage Encyclopedia
Language: English
Subject: Amway, Multi-level marketing, Hindustan Unilever, Non-store retailing, Aviance
Collection: Direct Selling, Publishing, Publishing Terms
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Direct selling

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling.[1] Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales.[2] A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs."[3][4]

Industry representative, the World Federation of Direct Selling Associations (WFDSA), reports that its 59 regional member associations accounted for more than US$114 billion in retail sales in 2007, through the activities of more than 62 million independent sales representatives.[5] The United States Direct Selling Association (DSA) reported that in 2000, 55% of adult Americans had at some time purchased goods or services from a direct selling representative and 20% reported that they were currently(6%) or had been in the past(14%) a direct selling representative.[6]

According to the WFDSA, consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees.[5] In contrast to franchising, the cost for an individual to start an independent direct selling business is typically very low with little or no required inventory or other cash commitments to begin.[5]

Most direct selling associations around the world require their members to abide by a code of conduct towards a fair partnership both with customers and salesmen.

Most national direct selling associations are represented in the World Federation of Direct Selling Associations (WFDSA).

Direct selling is distinct from multi-level marketing (salesperson is paid for selling and for sales made by people he recruits or sponsors) rather than single-level marketing (salesperson is paid only for the sales he makes himself).[7]

Largest direct selling companies

According to Direct Selling News, the largest direct selling companies, by revenue in 2012,[8] were -

Company Name Year Founded 2012 Revenue % Growth
Amway 1959 US$ 11.8 B 3.7%
Avon Products 1886 US$ 10.7 B -5.3%
Herbalife 1980 US$ 4.1 B 17.1%
Vorwerk 1883 US$ 3.3 B 10%
Natura 1969 US$ 3.2 B 14.3%
Mary Kay 1963 US$ 3.1 B 6.9%
Tupperware 1946 US$ 2.6 B 0.0%
Nu Skin Enterprises 1984 US$ 2.2 B 29.4%
Oriflame 1967 US$ 2.0 B -4.8%
Belcorp 1967 US$ 1.9 B 18.8%

References

  1. ^ "Direct Selling Methods: Single Level & Multilevel Marketing". 26 March 2007. 
  2. ^ Merrilees, Bill; Miller, Dale (1999). "Direct Selling in the West and East: The Relative Roles of Product and Relationship (Guanxi) Drivers". Journal of Business Research 45 (3): 267–273. doi:10.1016/S0148-2963(97)00238-5.
  3. ^ Michael A. Belch George E. Belch Advertising and Promotion: An Integrated Marketing Communications Perspective, 7/e., McGraw-Hill/Irwin, 2006
  4. ^  
  5. ^ a b c WFDSA - What is Direct Selling?
  6. ^ DSA - What is Direct Selling
  7. ^ Abrams, Rhonda (3 October 2002). "Don't get taken by multi-level marketing". USA Today. 
  8. ^ "2012 DSN Global 100 List". 3 April 2013. Retrieved 6 May 2013. 
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 


Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.