The internet has ripped the world wide open with new ways of marketing products and services. Gone are the days where you have to put out a full-page advertisement in the newspaper or spend money on an advertising campaign for your business.
In today’s world, anyone can post their product on Amazon and make it available for purchase to customers all around the world with single tap .
Let’s face facts. Traditional distribution channels are dying. The biggest retail giants are grasping for survival. As online sales continue to rise, brick-and-mortar stores are struggling to turn a profit. The situation is bleak for traditional retailers. And the problem is only getting worse. The sales of online retailers like Amazon are projected to reach $250 billion by 2020. Meanwhile, sales for physical stores are on decline .
Direct Selling has been one of the most popular distribution channels for product brands. The popularity of this channel is due to a variety of factors which include: its ability to provide a direct connection between suppliers and customers, it’s convenience for both ends, its ability to operate without middlemen and lastly its low operational costs.
Offline retail stores are currently facing a lot of pressure from online retailers. This is because people are shifting to online purchasing due to the convenience it provides. This is also attributed to the fact that brick and mortar stores have high overheads, making it difficult for them to compete with e-commerce websites. Thus offline retail stores are slowly being replaced with digital ones, which provide the same conveniences as online shopping but has no overheads.
Traditional grocery stores have also seen a decline in their sales in recent years, which is attributed to the fact that people are more likely to purchase groceries through digital Stores instead of going out and buying them at the store. This is because traditional grocery shops offer less variety in their produce compared to Digital supermarkets, which means that consumers will no longer need to go out in person in
In the past, the distribution channels for products were limited to retail stores, online stores and wholesale distribution. But now with the increasing demand for direct selling there has been a rise in the number of direct selling distribution channels.
Direct selling is a form of marketing that involves selling products or services to consumers without going through a third party. The product is sold either by a salesperson in person, via home demonstrations, or through a telephone call. Direct selling has been around for centuries and it’s making a big comeback because of its strong connection with social media platforms such as Facebook and Instagram and YouTube .
With a direct selling system, a supplier will sell a product directly to a customer without going through a middleman. This results in a much lower price for the customer and a much higher revenue for the supplier. Some of the most famous direct selling distribution channels include Amway , In order to get their products into customers’ hands, direct sales distributors use a variety of sales strategies to get their products in front of their target customers .
Direct Selling is quickly gaining popularity for its ability to provide a direct connection between the supplier and the customer. This allows for multiple benefits for both parties. On the supplier side, the direct contact with the customer allows for quick feedback and an easy way to track customer satisfaction. On the customer’s side, the direct contact with the supplier makes it easy to buy products in bulk and also gives the customer the ability to interact with the supplier in order to get the product that they want .
ITC Ltd has partnered with direct selling company Amway India for distributing its new immunity beverage to stay relevant and to compete with rivals Dabur, Coca Cola and PepsiCo etc . Amway India today said it is targeting a revenue of Rs 6000 crore by 2025 also invested Rs 600 crore in a manufacturing facility in Madurai, Tamil Nadu, as part of the Rs 1000 crore investment plan in India. More over Amway plans to invest around Rs 100 crore over the next 2-3 years in India, which includes Rs 70 crore investment in R&D, Rs 10 crore in manufacturing and Rs 20-30 crore in digital initiatives.
In conclusion, direct selling is a great way for both suppliers and customers to connect, learn from each other, and grow together. The benefits of direct selling for both parties is a great reason to explore this unique business model for your next business venture.
