Wednesday, July 11, 2018

Direct selling industry deals with distributors more connected

Direct sales should grow 3% in 2018, billing some R $46.5 billion. Although this business has consolidated in Brazil since the Decade of 1940, the model try now a digital transformation process and tries to adapt to the change in the profile of resellers. " We close the year 2017 with dealer 4 million and a turnover of RS $45.2 billion ", argued President Brazilian Association Executive of direct selling Companies (Abevd), Adriana Colloca. According to her, the industry is in the midst of a process of pulverisation. With that, the cosmetics segment – which currently corresponds by 54% of marketshare-no longer hegemonic and passes the share space with other niche markets such as clothing (8%), accessories (7.9%), home care (6.5%) and food supplements (4.3%). In parallel to this trend, Adriana says the impact of social networks in the process of dissemination of products also increased in recent years, but there is still "great importance in human relationship" between dealer and consumer at the time of purchase. The Executive President mentions the fact that today there are many university students acting as representatives of these brands. According to the data of the entity, 48.3% of entrepreneurs in this sector are between 18 and 29 years; 46.8% between 30 and 55 years; and 4.9% more than 55 years. She warns, however, that the virtual expansion may face some obstacles. "There are places in the country where the disclosure is still physics, on account of the bad signal and logistics issues," said Executive Chairman, citing the sales category "door-to-door" important in the process of relationship with consumers. One of the companies that are aware of this movement of digital transformation is the North American Herbal. Operating in Brazil since 1990, the company plans to retrain your reseller base through a training program. "We identified that 70% of our base is oriented more to consumption and the other 30% for business indeed. This reclassification process should last around six months, "said the Vice Chairman of Herbalife in Brazil, Jordan Rizetto, noting that the company has 300,000 registered distributors. In addition, the Commission claims that this reformulation process also involves the development of applications for resellers start rem sales and establish a closer contact with the consumer. "We already have applications with content to customers, other platforms will be directed to our consultants. It is important to understand for those who sell and the frequency of purchase of each customer, "explains. In this sense, Rizetto points out that one of the challenges, by the end of 2018, is to ensure that large base of people with different profiles, as those most familiar with social networking and the consultants more accustomed to the analog channels. "We have designs with influencers on Instagram," declares. With perspective similar to that of Rizetto, the CEO of Akmos, Claudius Apollinaris, underscores the importance of investment in applications to expand the base of loyal customers. "Next week we will launch our own mobile platform, in which the client buys our products and have access to a personal trainer service", explains the Executive. For him, the impacts of this strategy will be more senses in the medium to long term. The goal is to reach a base of 100,000 active distributors in Brazil. Today, the company has 25000 resellers. The estimated investment in the development of these applications was around £ $1 million, he said. In addition, Apollinaris says the company has sought to expand the portfolio, for example, through new product lines focused on food nutrition. The expectation is that, by December 2018, the business grow 20% in terms of revenue. Billing numbers were not disclosed, but Apolinario asserts that the gains are in the "nine digits." With regard to the profile of the distributors, the Executive says he has noticed a gradual reduction in the age of the team. "I believe in a full-age group between 20 and 35 years," he says. Focus on online sales and marketing manager of Jeunesse, Paloma Doro, the sales strategy known as "door to door" turned into a sustained trade by "click click". "Today, the dealer contacts the customer by WhatsApp and buying is guided digitally to our virtual platforms," says Paloma. According to her, every 10 purchases made, 8 are made through digital channels. With that, the manager says that there is an orientation of the company about how should the behavior and approach of the resellers on the internet. "It's not very pleasant to be addressed anyway. We have also an area of compliance in the company that has the purpose to verify that limits are being exceeded, "says Paloma.
DCI - 10/07/2018 News Item translated automatically
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