Direct Selling Market Overview

• Beauty, personal care, and consumer health are the most popular products sold via direct selling.

• Indian direct selling industry grew around 13% in 2019.

• The total number of direct sellers in India stood at around 5.7 million.

• 50% of sales came from wellness products such as weight management supplements, energy bars, and drinks.

Direct Selling Market Growth Drivers

The Direct Selling industry is growing steadily supported by various government initiatives such as the Skill India initiatives, which aim to impart soft skills and leadership skills to the aspirants. 

Make in India, Digital India, Startup India, and Women empowerment are also contributing to the growth of the market.

The personal bonding that comes with direct selling is yet another factor for the growth in this market. The quality of the products and best promotions available in direct selling is fueling the growth of direct selling in India. 

Direct Selling: Top 5 Customer Experience Insights From Customer Analysis

Customer experience management is all about creating and delivering personalized customer experiences that will attract them not just to be loyal to your brand, but also to spread the excellent experience with their family and friends, which thus becomes the most precious form of advertising. 

Through a detailed analysis of 8,651 online consumer conversations spread across 5 different brands, Clootrack has listed down the top 5 drivers of customer experience for customers of direct selling:

1. Product Quality

The first step towards establishing direct selling is to ensure that the product is of good quality and is superior to the locally available products. Consumers are very clear on certain features such as quality and the performance of the products. From 8,651 customer online conversations that Clootrack has analyzed, it is very evident that the top priority for the consumers is the quality of the products. Manufacturers of direct selling products can establish growth by maintaining high-quality products that will push customers to choose their brand over other products. 

2. Product Effectiveness

Product effectiveness relates to the extent to which a product achieves its objectives and the extent to which targeted problems are solved. When consumers buy a product, they expect it to adequately accomplish the purpose of buying the product and achieving the intended results. Manufacturers of direct selling products should mature to the point where they are effective and are successfully producing the desired results as expected by the consumers. Manufacturers of direct selling products should understand and promote the effectiveness of their products by demonstration or by offering free samples. Manufacturers should make their products work as intended to make a mark on the consumers.

3. Easy Returns Policies

Direct selling is all about nurturing long-term relationships with customers. Building easy return and refund policies can improve customer retention and customer satisfaction. Direct selling manufacturers should learn that their return policies should not negatively impact their sales. Consumers prefer to have a policy that should be clear and easy to understand. Customers appreciate the flexibility and convenience of returns and refunds and will be far more likely to shop with such a direct seller in the future. 

4. Product Availability

Imagine a consumer’s ecstasy when they receive their products ultrafast? Consumers prefer to receive deliveries sometimes even in under an hour’s time. Manufacturers need to think about how to get it out to the consumers really fast. If your process is long and painful, then you should consider rebuilding the process from scratch and building up to something that is simple, quick, and efficient. 

5. Good FAQ

A consumer who wants to learn more about the products will surely visit the FAQ section on your website. Consumers have reached the FAQ page since they are doing important evaluative research on your product. Direct selling manufacturers should talk to customers and figure out the questions to include in the FAQ section. Using the help of trained sellers can help your business appropriately respond to the needs of your audience.

Direct Selling: Top 4 Emerging Trends

Globalization and migration have brought a new dimension for direct selling companies. Over the last few years, direct selling is witnessing a few trends based on a model where consumers are participating and becoming co-creators of the direct selling processes by taking an active role in the buying experience. Keeping an eye on these emerging trends can make a huge difference for direct-selling businesses. Here are 4 emerging trends for the coming years:

1. Trendy/Reusable Packaging

Packing is the first impression that consumers get about a product and represents the entire brand. A unique packing design or reusable packing material can prompt the purchase of a product and is emerging as one of the most important trends in direct selling. More and more direct selling companies are paying close attention to product image and packaging.

Most direct selling companies should consider attractive and fancy packaging to drive up sales. Combine your packaging with the product to make a unique statement.

2. Longer Trial Periods

A trial period is a duration in which the product audition happens and the time when people transit from being audience to actual buyers. The trial period opens the door for consumers to try out the products even before paying for them.

In direct selling, the emerging trend is consumers asking for a longer trial period. When customers are busy professions, it is important to allow longer trial periods. As manufacturers of direct selling products, you should take the pressure off them by allowing a longer trial period. 

3. No Questions Refunds

Consumers these days want to be completely satisfied before they accept any products. Hence more and more consumers are asking companies to offer refunds without asking for any reason.

Manufacturers of direct selling should keep the refund policy flexible and easy for consumers in case they prefer to return the products.

Manufacturers of direct selling products need to understand that their refund policies will make all the difference between retaining a satisfied customer and losing that customer forever. 

4. Unbiased User Review Apps

Product reviews form a powerful form of social proof that can influence the users and their purchase decisions. When consumers see reviews of people appreciating the direct selling products, this can cause a positive feeling about the product. At the same time, negative reviews can destroy the product's image to a great extent.

With a high amount of importance on customer reviews, procuring unbiased reviews has emerged as an important trend in today’s age. It has become critical for consumers to have access to reviews that are not manipulated. Marketers and firms of direct selling products should introduce mechanisms to improve the authenticity of customers’ review data.