The COVID-19 year, 2020 brought many challenges for mankind. These challenges include breaking the virus chain, containing the potential to spread the virus, alarming rise in the unemployment, a unexpected decline in industrial growth and change in the consumer demands.
In April 2020, approximately 122 million Indians lost their jobs leading to the highest unemployment rate of 27.1% for April and May 2020 as reported by the centre for monitoring the Indian economy. Industries such as Leisure and hospitality, Educational Services, Real Estate and construction, Entertainment and recreation etc with no guaranteed future for their employees whereas some recovery was seen in June’20. Being said that, direct selling industry in India remained constant and successfully came out as a shining star in the pandemic.
What are the multiple factors responsible for a spontaneous growth?
o A shift from offline to online sales and work-from-home using the amplified use of technology.
o The vehemence of safety through social distancing and minimum human intervention.
o Also, the new concept of Atmanirbhar by Honourable Prime Minister is doing rounds on the table with a discussion over vocal for local. This is boosting local manufacturing companies and giving a positive rub off to the homegrown companies in India.
What are the key factors that make direct selling a successful module?
o Investment in the digital assets and technology which can be conducted via screen without physical intervention.
o Direct selling is the best option available as the platform is completely virtual.
It is a viable option for migrant workers. More than 50% of our direct sellers are from tier 2-3 regions who use their smartphones to reach out to prospective consumers and direct sellers through video conferencing and closing the business transactions through the mobile app.
In these times, when income is uncertain direct selling comes out to be a blessing in disguise. It requires a nearly zero capital investment and is considered as a secondary source of income when unemployment is increasing. If ond implements a 360-degree online ecosystem can bring about absolute transparency in the company affairs, leaving little scope for complaints or errors.
Parameters that can help direct selling growth in the uncertain times:
o An action plan for smooth flow of the business.
o Investment in technology for convenience in business and user experience for both consumers and distributors.
o Creating awareness through online training, webinars, updated applications in a timely manner.
o Use of digital touch points such as social media and advertising for promotion.
Therefore, it can be said that the direct selling industry has proven time and time again that it can hold strong and survive even more turbulent economic cycles. The current times are no different and the legitimate industry players, operating according to the government-defined guidelines, offering negligible or zero investment, time & space flexibility and the simplified work process blessed by technological advancements are an ultimate ray of hope for millions of Indians and also for the Indian economy today.
