Growth of direct selling industry in Sri Lanka

Monday, 8 November 2021 02:28 - - {{hitsCtrl.values.hits}}

As one of the world’s fastest growing industries, the direct selling industry has been long recognised as a sector that builds entrepreneurship and empowers communities. Globally, the Asia Pacific region has the highest share of the market, at 44% but the rest of Asia is also growing and expanding.

In South Asia, India leads with five million engaged in direct selling while 800 new entrants are recorded daily. Industry experts believe that the phenomenal growth of the industry is due to its ability to be a flexible source of income, thereby empowering individuals with the capacity and the capability to sell products within their communities.

This was the strategy that drove the global success story of Avon Cosmetics and Tupperware, two of direct selling industry’s best known brand names. Since 1886, the Avon lady has been a popular personality in her community, selling the world famous Avon cosmetics to her customers.

The famous Tupperware parties were where women gather to not just buy Tupperware but for fellowship and conversation – known as one of the world’s best known direct selling mechanisms with hundreds of Tupperware direct selling personnel located throughout the world.

In Sri Lanka too, direct selling companies maintain an active presence. Since no clear guideline are available to understand the scope of their operations, such businesses are not able to optimise the potential of the industry. A contributory factor is the lack of understanding and awareness of the direct selling industry as a globally vibrant entity that is active in over 170 countries.

Companies such as Global Lifestyle Lanka have been present in the direct selling industry for over 12 years. The greatest challenge faced by them in the local context is the lack of formal recognition. Without such recognition and structural formality, the industry faces the hurdles of being misrepresented and mistaken as ambiguous operations without adequate recognition and credentials.

Industry sources say that it need not be – as elsewhere in the world, there should ideally be a mechanism whereby the direct selling operations must be recognised as yet another form of sales business. A contributory factor is the dubious credentials of some entities masquerading as authentic direct selling operations – however, if there are mechanisms in place to recognise and elevate the industry, such operators can be weeded out, giving authentic companies the space to engage in their business.