Direct sales are selling products and services to customers in person or in groups. The history of direct sales goes back to the time of civilisation. They date back several centuries and have evolved significantly over time. Direct sales have been an integral part of human civilisation. We have been buying and selling for a long time.
Direct Sales History and Evolution | QNET |
Initially, the industry boomed in Greece. At that time, direct sellers contributed to the growth of goods trade. When Americans learned about this concept, they branched out their Canadian borders to bring supplies. After seeing exponential growth, the world came to know about this industry. Following is an overview of the historical development of direct sales:
18th and 19th Centuries: Emergence of Peddlers and Agents
- Direct sales history traces back to peddlers and agents who travelled door-to-door and sold various goods, such as household items, books, and personal care products.
- ‘Yankee Peddlers’ were the travelling salesman. They moved in carriages and carts from town to town, selling products and services in the mid-19th Century.
- Those Agents were part of a company and acted as intermediaries between manufacturers and consumers. It’s also the time when the first Direct Selling Association (DSA) was set up in the US.
Late 19th Century: Rise of Door-to-Door Direct Sales
- In the late 19th century, there was a great rise of door-to-door salespeople who offered a wide range of products, including cleaning supplies, books, newspapers, cosmetics, and encyclopaedias.
- Companies like Avon, founded in 1886, began establishing themselves as pioneers in direct selling by recruiting men and women as independent representatives.
- In 1963, Mary Kay Ash came and started a selling company and invested her life into it. After her great success, many other companies entered direct sales. And later, Austria established Direct Selling Australia (DSA) organisation.
Early 20th Century: Direct Selling Companies Formed
- In the early 20th Century, the direct selling industry grew exponentially. The profession of sales also started to evolve.
- That marked the formation of several direct-selling companies, including Tupperware (founded in 1946) and Amway (founded in 1959), which used innovative approaches to selling products directly to consumers.
- Amway introduced the concept of multi-level marketing (MLM), where independent distributors could recruit others to join their sales teams.
Mid to Late 20th Century: Growth and Regulation
- Direct selling continued to gain popularity in the mid to late 20th century, as companies constantly innovated their sales approaches and product offerings.
- And also, governments and regulatory bodies established guidelines and regulations to ensure ethical practices within the direct selling industry.
Late 20th to Early 21st Century: Direct Sales Technology Integration
- In the late 20th century, direct selling companies advanced with the advancements of technology and education.
- The advent of the internet and digital technologies brought about significant changes in direct sales. Companies started leveraging online platforms to reach a wider audience and streamline sales processes.
- Social media platforms further facilitated direct communication between sales representatives and customers.
Contemporary Period: Diverse Products and Global Reach
- Today, direct sales encompass various products and services, including health and wellness products, cosmetics, fashion items, and more.
- Currently, the industry has become very competitive.
- Furthermore, the industry has expanded globally, with companies operating in numerous countries and cultures.
Challenges and Evolution:
- Throughout its history, direct sales have faced challenges related to misconceptions, pyramid schemes, and unethical practices. However, reputable companies and industry associations have worked to address these issues and promote ethical business practices.
- Additionally, the industry has continued evolving, integrating modern technologies, emphasising relationship-building, and empowering independent sales representatives.
Conclusion
Overall, the history of direct sales reflects its evolution from traditional door-to-door sales to a dynamic and diverse industry that plays a significant role in the global economy. The direct selling method evolved as per the needs of the customers. Lastly, the industry has also built great relationships between many companies and individuals.
