S4DS - Trends and Challenges for the Direct Selling Industry


The new technology trends and the generational changes are transforming the traditional consumption patterns at an accelerated pace. These changes represent important challenges for the Direct Selling and Multilevel (MLM) companies.

Here we present you some important challenges that the Direct Selling industry will face during this year.

1. Globalization and interculturality

Globalization and migration bring a new context for the Direct Selling companies, where the messages cannot be delivered in a massive way. The messages need to be delivered with a personalized approach that allows to individually reach each culture, creating empathy with all the different consumer groups. This messages personalization is crucial to achieve a real customer loyalty.

2. The new generations

The power of the Millennials, the generation that encompasses those born between 1980 and 2000, represents one of the biggest trends and challenges for the current business landscape. This generation has a big buying potential and is looking for job stability and economic growth. This make them look beyond their university studies. Millennials want to have a backup plan and there is where Direct Selling can play an important role.

The Millennial generation wants to have autonomy and independence but they see as an obstacle the risks associated to it, such as economic, personal and professional failure. This is where the potential of the direct selling industry lies, because it offers entrepreneurship and autonomy at low associated risks.

Enrolling to a direct selling or MLM company has a low financial risk and guarantees the support of an established business that provides different types of resources such as training, a personalized website, product portfolio, business cards, online promotion, among many others.

3.Changes in the consumption patterns.

The people of the new generations are digital natives that spend, on average, 10 hours in front of a screen, they are on the social media all the time and look for high quality and sustainable products.

That is why direct selling companies have to adapt themselves to these needs, where buyers want to have direct contact with the producer reducing the intermediaries by using technology tools.

Over the years Direct Selling and MLM companies have tilted towards a model where consumers are co-creators of the creative processes by taking an active role in the buying experience. However, this effort is only in the surface of the potential that technology can offer to satisfy the needs of the new generations of consumers.

We cannot be indifferent to these trends and challenges that come for the Direct Selling and MLM industry. Companies have to be more competitive!

Direct Selling has a great potential that has not jet been exploited and we have to take advantage of these opportunities to communicate the added value of this channel. 




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