Direct Selling a Valuable Lifeline to Economy During Pandemic -- QNET

KUALA LUMPUR, Aug 11 (Bernama) -- The direct selling industry is a valuable lifeline for economies amid the crippling pandemic, according to leading Asian direct selling company QNET.    Chief executive officer Malou T. Caluza said the direct selling industry in Malaysia, India and Vietnam chalked up the highest percentage change in sales last year in Asia.  “Besides increased employment in the sector, each of these countries recorded over 15 per cent year-on-year (y-o-y) sales growth,” she said In a statement on Wednesday. Citing figures from the World Federation of Direct Selling Associations (WFDSA), she said that Asia was the most significant contributor in global sales for 2020 at a whopping US$76.5 billion, constituting 43 per cent of overall sales.  Despite the drop in y-o-y sales by 3.6 per cent, Asia maintained its position as the biggest market for direct selling while global direct sales rose 2.3 per cent y-o-y from US$175.3 billion in 2019 to US$179.3 billion in 2020. This was in contrast to the global economy which shrunk by 4.4 per cent last year and with many economies struggling with unemployment, Caluza said. The International Labour Organisation (ILO) reported a loss of 114 million jobs in 2020 caused by workplace closures in countries with COVID-19 related restrictions, which was especially true for young people and women.  According to the Direct Selling Association of Malaysia (DSAM), direct selling in the country expanded by 20 per cent last year to RM21.5 billion, while recruitment or employment rose to 4.0 million from 3.3 million a year earlier. Caluza said the direct selling industry demonstrated resilience where most commercial sectors recorded a downtrend due to the pandemic. Looking ahead, she said direct selling in Asia is expected to see growth trends in the coming year as movement restrictions ease and traditional retail regains momentum.  "E-commerce will likely continue to grow due to the shift in consumption behaviour which accelerated during the pandemic. “Southeast Asia’s online sector alone is expected to reach US$300 billion by 2025," she noted. Caluza also said the pandemic has forced many businesses to expedite their digital adoption.  "Those who made the shift quickly and were able to engage with and support their customers and distributors didn’t just survive but thrived. “However, we are not yet on the other side of the pandemic despite vaccination drives around the world," she cautioned. Moving forward, Caluza believes that people have a renewed awareness of the need to establish more income streams during challenging economic times. “For those who are looking to start a business, direct selling offers an attractive opportunity to start one as it does not require a lot of capital or the need to deal with operational and logistics hassles. “Companies with health and wellness products experienced a significant boost in their sales thanks to increased awareness and personal health concerns brought on by the pandemic,” she said. Caluza added that health and wellness products took the lead in global direct sales at US$64.8 billion and the trend will likely persist in the following years. -- BERNAMA