The impact of the Covid-19 pandemic was felt across industries, but one sector that remained largely unaffected was the Direct Selling Industry. The pandemic gave rise to several retail formats that catered to changing consumer buying trends. The Direct Selling Industry was quick to adopt a personalized distribution channel that was flexible and customizable. And that was the reason why the Direct Selling companies, also referred to as Multilevel Marketing (MLM) or Network Marketing companies, remained unaffected by the economic fluctuations. Let us find out how the Network Marketing companies weathered the Covid-19 pandemic and continue to do so.
Direct Selling – A Dynamic Distribution Channel
The foundation of any Direct Sales Company lies in its face-to-face marketing. A Direct Selling company that offers unique and quality products provide a platform to its Sales Representatives that empowers them and enables them to generate entrepreneurs. Amidst the severe Covid-19 pandemic, the Direct Selling Industry was instrumental in providing self-employment opportunities to over 5 million people. Forming an important component of the Indian Government’s Make in India and Women Empowerment initiatives, the industry saw nearly 60 percent of women absorbed in the industry over the past few years. The opportunities offered by the sector have empowered women in attaining financial independence. Apart from empowering women, the Direct Selling companies are also generating direct employment in their endeavours to become entrepreneurs. Let us discuss in the following section how the industry has been able to weather the pandemic storm.
Leveraging E-commerce
Direct Selling companies that enhanced or promoted their Sales Representatives’ virtual stores gained visibility and increased their reach. The advancement in technology and the easy availability of the Internet at affordable rates led to an unbelievable rise in e-commerce activities. Companies that sharpened their e-commerce offers for customers reaped the benefits of online connectivity.
Active Response to the Covid-19 Cause
Direct Selling companies that contributed actively to the pandemic cause producing relevant medical offerings like sanitizers, masks, disinfectants, health & wellness products, or donated funds actively created strong relationships and strengthened their image with their customers and distributors alike.
A Sharp Focus on Repeat Customers
Independent Distributors usually adopt two strategies: they generate sales either by direct interaction with prospects or create a lasting relationship with groups of existing customers and cater to their continuous requirements. During the pandemic outbreak, it has been challenging to generate new customers, which is why maintaining relationships with existing customers has been more sensible and adaptable. Further, by implementing the referral campaigns, the existing customers have been more forthright in responding and enabled the Direct Selling companies to widen their sales network.
Expansion of Distributor Network
The onset of the Covid-19 pandemic saw a sudden increase in unemployment claims. It signalled longer-term workforce distortions. The direct Selling Industry stepped in to offer potential Independent Distributors to reinvent themselves. The industry offered them a new career and could expand their salesforce and increase their offline and online visibility. Further, its Independent Representatives helped ease its recruitment activity by leveraging social media to target potential recruits.
Stress on Online Training & Development for Representatives
The frequent lockdowns enforced by the government to counter the pandemic menace and the introduction of social distancing norms only hindered the traditional in-person model of direct selling. However, innovative social selling tools and virtual meetings evolved during this period, empowering distributors to interact with their prospects and customers virtually. The online tools enabled companies to conduct training and provide digital material to their representatives.
Observation – Adopting Sensible & Innovative Ways Can Counter Any Adversity
Ever since 2020, the Coronavirus menace has affected the economy and threatened the existence of humanity. It will continue to affect the Direct Selling business model as far as consumer demand and supply chains remain the focal points for Direct Selling companies. It is now for the Direct Selling companies and their salesforce comprising Independent Representatives to adopt innovative ways by using technology, leveraging the Internet, and following best ethical practices in the industry to position their sales and communication efforts. Sometimes adversities bring the best out of you, and the Direct Selling Industry is the one that has indeed stood out!
