Direct Selling is a Boon for Unemployed Youth in South Africa.
In South Africa, the scourge of global economic recession has left several youths unemployed. At a time when the Government has failed to provide jobs to its people, Direct Selling Companies have lent them opportunities to earn money. Direct Selling Industry offers a low cost entry into the business sector and there are thousands of formerly self-employed South Africans who have utilized this model to become successful entrepreneurs. These companies work through a wide network of independent sales consultants, called ‘Direct Sellers,’ spanned across the country.
These Direct Sellers earn incentives based on the amount of products sold. Direct Selling Industry can absorb youth, women and help them support their livelihood with some extra income. According to a report by Euromonitor International released in May this year, the current challenging economic environment in South Africa is expected to continue in the short to medium term, due to low consumer confidence, high debt levels and continuing instability in the labour market. These factors are set to offer Direct Selling companies ample opportunities to invest here.
Direct Selling Businesses are fast-proving to be a significant contributor in the economic growth of Region 7, central region of the Visayas island group of Philippines. They are also among the biggest providers of employment in this region, especially to women. Even, Filipinos are now aware of how a Direct Selling business works and how the business can help them augment their income. Over the years, Direct Selling has expanded its business in Philippines and the testimonies of several successful entrepreneurs have attracted more people to get involved. As per the Direct Selling Association of the Philippines (DSAP), a Direct Selling business is “a business model that offers entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations or online”. Since its inception in 2002, Sophie Paris, which is a member of DSAP, has over four lakh active members, with majority of them being women and students aged 30 years or less. Of its nationwide operations, Region 7 is the fastest growing for Sophie Paris in terms of sales and membership.