1. Direct Selling in year 2000 by Thomas R. Wotruba  直銷通路管理報告  指導教授﹕陳得發教授  學生 : 王昭雄  學號﹕ 8941812  中華民國九十一年四月十七日

2. Introduction Predicting the future is both challenging and hazardous. For the salespeople, seek a diversity of rewards including income, self-esteem, entrepreneurial success, friendship, and a flexible work situation. a flexible work situation. How well DS selling organizations prosper in the future. Marketplace changes in buying behavior, value and accessibility will impact product lines offered and mechanism for channeling them to buyers. Other factors affecting DS in the coming years are more commonly shared with other retailing and business operations.

3. Recent Trends in Direct Selling Direct Selling Industry (1988) 1.174 DS companies, 3,996,067 salespeople. 1.174 DS companies, 3,996,067 salespeople. 2.Totail retail sales reached $9.7 billion. 2.Totail retail sales reached $9.7 billion. 3.9.3 million salespeople produce sales of 3.9.3 million salespeople produce sales of about $40.2 billion in 32 countries(1999). about $40.2 billion in 32 countries(1999).Salespeople 1. 81% of DS sales people are women, 23% are married. 1. 81% of DS sales people are women, 23% are married. 2. DS are more outgoing, aggressive, enthusiastic, and venturesome. 2. DS are more outgoing, aggressive, enthusiastic, and venturesome. Product Lines 1. household products: cookware, kitchen, vacuum cleaners etc. 1. household products: cookware, kitchen, vacuum cleaners etc. 2. personal care and beauty items: cosmetics,skin care items, cloth, 2. personal care and beauty items: cosmetics,skin care items, cloth, jewelry, shoes. jewelry, shoes. 3. Leisure and educational products: toys, crafts, hobby items. 3. Leisure and educational products: toys, crafts, hobby items. 4. services and other product lines: buy club and travel club services, 4. services and other product lines: buy club and travel club services, book and magazines. book and magazines.

4. Markets Serviced and customer Characteristic 1. Typical buyer – Youngers, more likely to be female, high education, 1. Typical buyer – Youngers, more likely to be female, high education, higher income, comes from a lager household. higher income, comes from a lager household. 2. Purchase mode –household purchased at home (36%), 2. Purchase mode –household purchased at home (36%), workplace( 27%), and home party (27%). workplace( 27%), and home party (27%). 3. Advantage – convenience, personal attention, ability to examine the 3. Advantage – convenience, personal attention, ability to examine the product and/or talk with the seller. product and/or talk with the seller. 4. Disadvantage – high pressure salespeople, bothersome, salespeople’s 4. Disadvantage – high pressure salespeople, bothersome, salespeople’s reliability and service. reliability and service. Recent Trends and Issues 1. Use of New Channels and Channel Integration. 1. Use of New Channels and Channel Integration. 2. Opportunities in Global. 2. Opportunities in Global. 3. Evolution of Company Product Lines. 3. Evolution of Company Product Lines.

5. Projection Regarding Market 1. population – median age of U.S. population is 33 in 1900, 36 1. population – median age of U.S. population is 33 in 1900, 36 in 2000, 41 in 2002. in 2000, 41 in 2002. 2. Average Household Income –To grow about 40% over the 2. Average Household Income –To grow about 40% over the next five years. next five years. 3. Major change in life styles, value, and behaviors 3. Major change in life styles, value, and behaviors a. Convenience a. Convenience b. Emphasis on self-identity and self-expression b. Emphasis on self-identity and self-expression c. The quality of a product c. The quality of a product d. Value sensitivity d. Value sensitivity e. Increasing leisure or discretionary time e. Increasing leisure or discretionary time f. Life-style change f. Life-style change g. A greater desire for new product g. A greater desire for new product h. Flexibility in employment: h. Flexibility in employment: flextime, job sharing, telecommuting Direct Selling in the Future: Projections and Implication

6. Projection Regarding Direct Salespeople There are at least four different types of motivations for taking on a DS position 1. dollar income 1. dollar income 2. more intrinsic rewards 2. more intrinsic rewards feelings of accomplishment, self-fulfillment, and skill feelings of accomplishment, self-fulfillment, and skill development development 3.the consists of interpersonal relations or sociability 3.the consists of interpersonal relations or sociability needs needs a. gaining attention and respect a. gaining attention and respect b. getting recognition, making friend b. getting recognition, making friend c. working on a team c. working on a team 4. relates to enjoying an association with a well-known 4. relates to enjoying an association with a well-known company and identifying with its product company and identifying with its product

7. Other Projections. Demographic Life style changes have affected the enticement of retail store shopping as well -- Single- person or single-parent household members lack the time to shop.. These developments have given rise to an enormous increase in direct marketing via catalogs toll-free numbers, and home delivery via UPS carriers.

8. Implications for Direct Selling 1. market Demographics a. Older average age b. Greater ethnic mix c. Greater employment among women d. Slowdown in overall population growth e. Declining average household size f. Increase in geographic mobility g. Increasing household income 2. Life-Styles a. Desire for convenience b. Emphasis on self-identity c. Importance of value (quality and service) d. Desire for more information and communication e. Dependence on products and services f. Desire for new products g. Flexibility in employment h. Return to family ethic

9. Implications for Direct Selling 3. Direct Salespeople a. Demographics and life-style of the general population b. Increased competition in labor market for women c. Higher priority on fulltime, secure jobs d. Greater realization of diversity of reasons for taking direct selling jobs 4. Other a. Maturing of in-store retailing b. Lessening of retailing services c. Increased incidence of computers in the home

10. Prescriptions for Direct Selling Companies Pursue New Market Older Age Groups Expanding Ethnic Groups Global Markets Increase Support for the DS Salespeople Assist in Lead Generation Adjust Product and Service Offerings Promotional Support for the Concept of Direct Selling Provide a way for DS Salespeople to Obtain Fringe Benefits if Desired Develop New Product and Service Packages Convenience Package Educational Package Establish a program of Marketing Research

11. Impact of Direct Selling on Retailing Consumers will favor those supplies who can provide: 1. convenience service 1. convenience service 2. personal attention 2. personal attention 3. quality merchandise 3. quality merchandise DS has succeeded by offering these same benefits. DS has succeeded by offering these same benefits. Many retailers have taken a step in this direction with a rapidly expanding direct marketing program. Many retailers have taken a step in this direction with a rapidly expanding direct marketing program. Astute observers of retailing believe that “storeless shopping” will grow rapidly over the next decade. Three factors seem critical for effective direct selling by non-DS retail 1. appropriate products 1. appropriate products 2. a customer willing to place quality, convenience, and 2. a customer willing to place quality, convenience, and service above price as reasons for buying. service above price as reasons for buying. 3. an effective person to carry out the selling task 3. an effective person to carry out the selling task

12. Conclusions As direct selling approaches the 2000, it faces some major challenges in its customer market and its labor market. DS seems well poised to capitalize on emerging consumer life-style changes and to compete more effectively with traditional in-store retailing. Other retailers might also find value in employing selected direct selling ideas to differentiate their market offerings and meet their customers’ needs and priorities.

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