Australia entered its first nationwide lockdown in March 2020 and even though restrictions were eased later in the year, the second wave of the pandemic as a result of the Delta variant resulted in further lockdown restrictions across key cities in 2021. Such restrictions meant that digital continued to be a key method of communication for direct selling’s survival with many consultants engaging with digital technologies such as video calls via Zoom and social media platforms such as Instagram and YouTube to engage with their clients and attempt to retain their sales base.
COVID-19 resulted in the temporary and permanent loss of employment for many Australians. Furthermore, there was an increased focus on remote working and the benefits that this offered.
Direct selling agents are now embracing social media platforms to boost communication with customers and expand their connection networks. The opportunity to own a business, work from home, and make money are various reasons why people decide to join a direct selling company.
Direct selling in Australia continues to attract negative publicity and as such, some people perceive many of these companies to be essentially pyramid schemes, with earnings potential being deliberately overstated to recruit sales representatives who can go on to lose money or incur significant debts. There have also been many reports in the media and online posts from the public regarding concerns about the efficacy and safety of various products marketed by direct selling companies.
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Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations. Direct selling occurs in two primary ways: -one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or -party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose). The prime example of a one-to-one method is Avon. Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, financial services - are excluded.See All of Our Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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