Impact of Pandemic on the Direct Selling Industry

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The onslaught of the deadly and unexpected Covid-19 pandemic in 2020 affected the entire world and continues to disrupt economic and livelihood activities. As per the Centre for Monitoring the Indian Economic, around 122 million Indians lost their jobs in April 2020. The pandemic has inflicted many challenges like breaking the virus chain and containing its spread, rising unemployment, and the slowdown in industrial growth. All this has also resulted in consumer demands changing. This write-up discusses how Direct Selling has survived the pandemic onslaught and even come to the rescue of millions of Indians in providing them with livelihoods.

Impact of Pandemic on Direct Selling Companies and Sales Representatives

With strict measures of social distancing introduced and the government’s frequent enforcement of lockdowns, it restricted the movement of the Direct Sellers – popularly known as Independent Representatives. Further, the measures introduced to counter the pandemic slowed down the supply chain and created hurdles in the movement of the products resulting in loss of business.

Direct Selling Industry – Unaffected by the Pandemic

Over those past few years, and especially after the pandemic set in, when most companies had to shut their operations and take a hit, the Direct Selling industry was the lone one that successfully emerged as the winner. Remaining largely unaffected by the pandemic, the Direct Selling Industry, which historically comprises a distributed workforce, has proven incredibly robust.

Why Has the Direct Selling Industry Remained Robust During Pandemic?

Even as Industries like Real Estate & Construction, Leisure & Hospitality, Entertainment, and Educational Services are still struggling to get on track, and many moving to the work-from-home norm, the industry has seen a drastic shift from offline to online sales and transactions – thanks to the optimized use of technology. Listed below are some of the ways that helped the Direct Selling Industry to remain steady and robust even during severe testing times.

Leverage of Technology and Internet

As with any crisis seen earlier, this one too created an opportunity and led to the transformation of the Direct Selling Industry. It capitalized on the digital ecosystem and created a new setup for its Sales Representatives – also known as Distributors or Independent Representatives. The optimization of technology and the internet by introducing online MLM software made it easier for its Sales Representatives to train and manage their business. The e-commerce websites and social media platforms made it easy for customers to interact with the companies and buy their products – conveniently.   

Increase in Online Transactions

The enforcement of the frequent lockdowns by the government and other safety measures has led consumers to purchase from online platforms. It has been the main reason for the increase in sales of Direct Selling companies. Companies and Direct Sellers who had a vision and invested in digital assets and technology were the ones who benefitted the most as the Direct Selling business is completely virtual.

Government Initiatives

The Indian Government’s mantra of achieving self-reliance (aatmanirbharta) using the slogan ‘Vocal for Local’ has boosted local manufacturing. And this has also rubbed off positively on homegrown Direct Selling companies in India. Other initiatives like Make in India, Women Empowerment, and Skill India encouraged the industry further. Many individuals looked up to the Direct Selling business to attain financial freedom and earn their livelihoods during the severe economic crisis induced by the pandemic.

The Closing Comments

Are you someone affected by the Coronavirus pandemic and looking to earn a livelihood to support your family? Are you looking to attain financial freedom? Or are you looking to generate a residual or second income? Do not panic and look no further. The Network Marketing companies that have remained unaffected by the pandemic have provided millions of people their livelihood, the perfect solution to your employment woes. Attain financial freedom and be your own boss. Embrace the MLM business now. All the best.