Although the COVID-19 pandemic affects many sectors in various ways, the direct selling sector is particularly susceptible, given its dependence on face-to-face contacts and an efficient worldwide supply chain.
However, exclusive research of L.E.K. Consulting shows that customers require more than ever many of the goods offered by this sector. We also think that recruitment may be an extraordinary boon since many who suffer from job displacement and other reductions might see direct sales as a reasonably appealing career perspective.
Indeed, direct sales firms may position themselves in many ways to cope with the COVID-19 epidemic; we are here to deal with it. During our upcoming two-part COVID-19 and direct sales series, we will discuss how direct sales businesses may not only cope with the epidemic but also flourish long-term. This post discusses some of the possible impacts and the ways to deal with the post-covid marketing world of the direct selling industry in 2021.
The COVID-19 epidemic is anticipated to have a major impact on the direct sales sector. This is because direct sales have historically depended on face-to-face contacts via live shows. The social separation regulations and refuge rules imposed by federal, state, and municipal health authorities have already had an acute effect on the direct selling business model.
According to a bi-weekly poll of about 2,000 U.S. consumers by L.E.K., which was intended to monitor pandemic changes in feelings, around 85 percent of customers are — unsurprisingly — gloomy about the next year.
Due to this and to the extraordinary increase in unemployment rates, we anticipate a continuing reduction in discretionary expenditures of all kinds. Consumers have already reported significant reductions in monthly expenditure across many categories for direct sales (e.g., consumers have reported spending 15 percent -20 percent less on beauty products).
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But not all the news is negative for direct sales. Other areas, like dietary supplements, are actually more expensive (at least momentarily) than they were before the recession. In addition, consumer re-conditioning in a health crisis of this kind is likely to revive interest in categories of wellness.
A second mitigating element is a probable shift in the receptivity of direct sales to the business proposition through multi level marketing software or MLM software. The combination of increased flexibilities for working from home for the masses and the genuine and urgent necessity for many to look at additional or alternative sources of income will transform the recruitment paradigm.
One good element of an otherwise terrible humanitarian catastrophe could be the growth of direct selling businesses’ potential talent pool backed by MLM software.
Due to L.E.K’s direct selling expertise and an evaluation of how top direct selling businesses have so far reacted to the crisis of COVID-19, there are many strategies that brands in this area may use to position themselves to resilience during and after the pandemic.
Independent direct marketing distributors typically rely on a combination of two strategies: (1) stimuli generated by live meetings with consumers who did not buy from agents before and (2) sustainable relationships with small groups of consumers and continued interactions that respond to their repeated needs.
Despite assistance initiatives from the Direct Sales Association powered by multi level marketing software or MLM software and others, the whole length of the breakdown is probably a major problem for individual distributors that rely mainly on new clients. On the other hand, distributors that build current connections will be more likely to adopt, keep virtually their relationships and continue to produce revenue.
In this respect, direct selling brands are supported by their independent distributors and should be identified by enabling repeat purchases. By communicating availability, optimizing the stock of the distributors, providing samples directly to consumers, and being proactive on delivery dates, companies may assist these efforts.
Some businesses such as Avon double by upgrading, developing, or marketing the virtual shops of its dealers, while others, such as Arbonne, strengthen e-commerce opportunities for their “preferred clients.”
Of course, direct sales firms backed by multi level marketing software will need to combine attempts to promote eCommerce with the degree to which the independent dealer relationship, via advice and suggestion, provides a “value-added channel.”
Given the social distance requirements and restrictions on “non-essential” enterprises, the conventional in-person form of direct marketing — in particular group events like “shake parties” at Herbalife Nutrition â will need long-term creative thinking and development.
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It will be essential to empowering distributors with social sales tools and virtual meetings (e.g. Zoom), etc. To this aim, Herbalife has started to provide online experiences rather than in-person sessions for her fitness and wellness activities, saying that online commitments have become more attended than ever.
Amway has also given its sales staff extra online training and digital assistance to offer them the tools they need to continue digitally selling using multi level marketing software or MLM software and sustain sales momentum.
Organizations that may directly help to respond via the production of medical goods, donations of money, etc. might develop strong connections with prospective B2B customers and enhance the brand image of both distributors and consumers.
For example, Amway started manufacturing hand sanitizers and donated them to hospitals in Michigan and subsequently received considerable positive news; Avon donated masks, soaps, and other hygiene products all over the world; and Nu Skin donated funds, air purifier and masks throughout Europe, Asia and the United States recently.
Numerous methods may be used to directly market brands to survive the COVID-19 epidemic. There are obviously methods such as multi level marketing software or MLM software that assist from concentrating on repeater customers and integrating COVID-19 advice in wider health and wellness topics to highlighting the advantages that direct sales provide new employees. Directly selling brands have weapons in their arsenals that may not even be aware that in these unusual times they will serve very effectively.
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