1. TAIWAN DS SOCIAL IMPACT STUDY
DAISY
ERIC
JAKE
MIA

2. CONTENT Introduction Overview of the Taiwanese direct selling industry
The economic and fiscal contribution of
this industry
The social contribution of the Taiwan Direct Selling
Industry

3. PURPOSE OF THE STUDY To present the direct and indirect social and
economic impact of the Taiwan direct selling industry.

4. The report is based on two surveys, one of direct selling companies and a second of individual direct sellers.
28 companies were asked and 20 returned the
survey = 71% respond rate
1789 direct sellers were asked and 535 returned the survey = 30% respond rate

5. WHAT IS DIRECT SELLING ?

6. BENEFITS
Consumers:
DS provides convenience, quality and value for money
Product demonstrations, trials and customized service.
Direct sellers:
Having an own business, opportunity of self-employment with low startup costs.
DS also provides schedule flexibility and an alternative for earning income.

7. TAIWAN
DS in Taiwan provides significant financial and non-financial contributions to households, the community and the country.

8. DS is non-store retailing, it does not require a fixed retail location
Methods to connect with customers:
Person-to-person
Party plan: A hostess invite friends to her place

9. COMPENSATION STRUCTURE OF DS ORGANIZATIONS
Single-level is based on the markup between wholesale and retail prices.
Multi-level earn income through sales to their direct customers or
the direct seller earns a commission based on the sales of their down line.

10. II The Taiwan Direct Selling Industry

11. Direct Selling in Taiwan
264 DS companies in Taiwan
TDS members account for 50% of DS revenues and 37% of DS employment
Revenues in Taiwan  $52,0 billion in 2003

12. Total Retail Sales(2003): $1,860 billion
2.8%
97.2%
Direct Selling sales
All other retail sales

13. Direct Sales Penetration Rates – Asia, 2003 (thousands)

14. Taiwan Population and Employment Data, 2003 (thousands)

16. Taiwan Direct Selling Sales Force Growth, 1998-2003 (thousands)

17. Direct Selling Product Categories and Associated Revenues ($ in millions)

18. Characteristics of Direct Sellers

19. Characteristics of Direct Sellers

20. Economic & Fiscal Contribution

21. Direct Economic Contribution
2003 Statistics:
5000 employees in DS organizations
668,000 Direct Sellers
264 DS organizations – total revenue NT$52 billion
Average annual commission $35,500

22. Supplier & Employee Spending Contributions
Indirect Employee contribution: DS industry buys products and services from other Taiwanese businesses
Induced Employee contribution: spending of income earned by direct sellers in retail and other sectors

23. Total Economic Impact Total Economic Impact =
Direct + Indirect + Induced
Income Multiplier (indirect and induced): additional $40.8 billion in Taiwanese personal income

24. Government Tax Revenue
DS industry: $10.5 billion in tax collections
Direct: $6.0 billion
Indirect: $4.5 billion

25. Social Contribution of DS Industry

26. Work Experience of Sellers

27. DS Training 82% of direct sellers received training
50% trained by company
25% trained by upline
87% of direct sellers worked for only 1 DS company in the last 2 years
82% of direct sellers worked 12 months per year

28. Time Devoted to Direct Selling

29. Direct Selling Approaches

30. Benefits of Direct Selling
Development of entrepreneurship
Own your own business – while having assistance from a big company
Independence
Flexibility
Socialize
Improving professional skills

31. Development of Personal Skills:
Self-esteem and confidence in other jobs and private life
Financial Benefits:
Income earned from DS most commonly used for daily expenses and improving quality of life
Charitable Donations:
$44 million given to charities

32. Satisfaction of Direct Sellers
Very Satisfied 40%
Somewhat Satisfied 31%
Indifferent 10%
Somewhat Unsatisfied 13%
Not Satisfied at all 6%

33. Conclusion Contributions of DS:
Economic – jobs, personal income, investment, and taxes
Social – quality of life, personal skills, entrepreneurial skills (including women, uneducated, disabled, and low-income)