MANILA, Philippines — Direct selling is essentially a person-to-person selling, according to an officer of a multi-level marketing company. But during the COVID-19 pandemic, the direct selling business model pivoted to digital selling.
Direct selling companies are thriving in the new economy by shifting their resources to online business model.
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For major direct selling firm Amway Philippines, an affiliate of the Ada, Michigan, United States-based Amway, its direct sellers of Amway Business Owners had to shift from face-to-face interactions to videocalls.
The company has 80,000 ABOS all over the country.
“We provided our ABOs with trainings and resources to bring their offline communities online,” said Amway Country Manager Leni Olmedo.
However, she said that while direct selling has changed to digital, the person-to-person channel will continue to be relevant with the increased use of social media and growth to online companies.
“The platform may have changed from offline to online, but the core of business-building through strong personal connections will remain the same,” she said in an e-mail interview.
Other direct selling companies such as Herbal life, Usana Philippines, Avon Cosmetic Philippines, Frontrow Philippines, among others, also ramped up their online presence. Some of them are likewise holding webinars to aid their sellers in their shift to online selling while others are focusing on their website.
Olmedo said that direct selling is an ideal channel for start-ups as it is a low cost, low investment, turn-key solution.
She added that digital transformation is also easier for direct-selling because firms are location-agnostic, supporting businesses nationwide.
During the pandemic, the Amway country manager said that product categories classified as essential goods experienced a surge.
“Demand for Nutrilite health supplements, personal care and hygiene products, and household sanitation has significantly increased during this COVID-19 crisis. Conversely, spending for color cosmetics and luxury skin care has been deprioritized in favor of essential purchases,” Olmedo said told Philstar.com.
Meanwhile, businesses offering health and wellness products in nutrition, personal care and home care are projected to emerge stronger as a result of shift in consumer behavior during the pandemic.
“There are a few early trends that can be observed and one of them is the heightened degree of consciousness for immunity, and consequently, demand for immunity-related products,” she said.