Lessons From The Lockdown 2020 – Direct Selling Industry

What Lessons From Lockdown 2020, Did Direct Selling Industry Learned?

Let’s see the Lessons from the lockdown 2020 on Direct Selling Industry. In 2020, the global health crisis of COVID-19 stirred up businesses from every corner of the world. The travel industry crashed and social distancing ended the normal way of doing business. On the other hand, the healthcare industry seemed to be the only beneficiary of the COVID-19 pandemic, the direct selling industry emerged successful to everyone’s surprise.

This does not imply that the direct selling industry had it easy during the pandemic. During, the mid of 2020, direct sellers faced numerous challenges that helped them negotiate customer solutions and business innovations. The nationwide lockdowns in 2020 taught some meaningful and valuable lesions to direct sellers. These lessons are perhaps the answers to rebooting the direct selling economy in the post-COVID-19 era.

  1. Lesson From Lockdown 2020, To Tackle an Economic Slowdown is Tough:

    At the onset of the COVID-19 pandemic, the direct selling industry has heavily tested for its capabilities. Many entrepreneurs in the industry had to downsize their business scales and were compelled to lose their prospects. As the global economy faced an abrupt halt, product manufacturing slowed down, and moving goods from one place to another became impossible. Adhering to the social distancing norms was against the direct selling model, where associates meet their customers in-person to sell products. The constant fear of infection created problems in product movement.

    In this crisis, the industry witnessed an opportunity in the digital ecosystem. Network marketing companies adopted effective MLM software such as Ventaforce to promote their products digitally. Assistance from the software helped them reach millions of customers confined at their homes with internet access. It created a new setup for distributors that could reach millions of customers within the third quarter of the year. Despite moving against the economic slowdown, direct sellers used MLM software to boost their business digitally and register more than 50% growth every month.

  2. Contactless Selling is Possible:

    The COVID-19 pandemic transformed consumerism. People stuck at home used their mobile phones and computers to order essential goods. This emerged as a key opportunity for direct sellers. With the help of MLM software, most direct sellers offered a wide range of essential goods to their customers. As a result, the demand for products increased among direct sellers. Moreover, most direct selling companies ensured that their products get delivered without any human intervention. Multi-layered protective packaging and regular sanitization of package surfaces helped the direct sellers in gaining the trust of their customers during the lockdown. All business-critical operations were migrated to the digital platform. Consequently, by the end of August, online ordering of products grew to 300%.

  3. High Demand for Healthcare and Wellness Products:

    At a corporate level, direct selling companies devised new strategies to fish out relevant schemes for their customers. Among these practical solutions, direct sellers focused on upselling healthcare and lifestyle products. By engaging their stakeholders at large, the companies mirrored the current consumer sentiments towards personal hygiene and disinfection. Direct sellers around the world sold more than 20 million sanitizers during the year. Direct sellers also become adaptable in building agility across their organization. The COVID-19 crisis taught them new ways of doing business. As the demand for preventive wellness services increased, the direct sellers converted this into an opportunity. They promoted the risk-free element of buying products from direct sellers over retailers. For most direct sellers, healthcare and wellness products such as dietary supplements and oximeters contributed to nearly 45% of their total sales in 2020.

  4. The Need for Sustainable Direct Selling:

    The direct selling industry witnessed widespread adoption of MLM software.  According to the developers of Ventaforce, a leading MLM software, nearly a dozen of the world’s top product manufacturers adopted the MLM solutions through software and mobile apps. The e-commerce market evolved and matured in the Middle East, Africa, Eastern Europe, and Southeast Asia. Working from home, the software solutions made direct selling more sustainable during those circumstances. It drove the entrepreneurial opportunity in the direct selling industry. MLM companies remotely operated by upskilled micro-entrepreneurs. The industry also matured in an organized manner. A robust supply chain framework was put in place till the end of November. This helped direct sellers in boosting the sales of diverse products. Moreover, the direct selling sector helped millions of unemployed individuals in earning a secure and decent livelihood through lucrative MLM plans and compensations.

    In 2021, the direct selling industry has geared up with lessons of lockdown 2020, experiences that would help in handling any challenges, come what may. These key lessons helped direct sellers in overcoming their biggest fears. They helped them face and surpass multiple challenges successfully. The 2020 lockdown is responsible for creating a self-reliant tomorrow in direct selling.


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