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Direct Sales

CEO of the LiCO consulting company, Maxim Kikot notes that direct sales are particularly effective for complex products or services, when the quality of the product need to be explained.

Experts claim quantity of direct sales adherents will increase.

St. Petersburg. According to some estimates, the efficiency of direct sales in Russia is growing by 15%.

‘The effectiveness of the direct sales depends on the product itself. There are products that do not require an explanation, but there are other ones that need to be explained at a professional level. In this case, we cannot do without direct sales’, - the president of DSA (Direct Selling Association in Russia) Tamara Shokareva believes.

According to the CEO of the LiCO consulting company Maxim Kikot, it is reasonable to use direct sales for beginner companies or those who work in the young branches. "In this case, the efficiency of the direct sales is 70%," - he said.


REFERENCE

Direct Sales

It is a way of selling goods and services to consumers outside the place of conventional trade, carried out by personal contact within the home (home-party) of the consumer or of a third party, in the workplace or in other conditions.

The main ways of direct sales:

peddling;

mail-order sales;

trade through manufacturer-owned stores.


According to experts, the advantages of this method consist of significant cost savings, as there is no need to create a retail point of sale, lease warehouse space. While Maxim Kikot stresses that already in 5 years a company can make a name for itself through direct sales, which is much less than the period that is required by traditional approaches.

“A developed service company has the most effective channel for direct sales - Internet, - said Mikhail Zavileysky, head of the St. Petersburg representative office of DataArt company. - A customer who came from the Internet, has a formed desire to buy your services – it is a plus. He perfectly sees all your competitors - it is a minus".

Direct sales supporters number is increasing

Today, direct sales are common in b2b area, as well as among the companies producing cosmetics and perfumery products. "In the coming years the expansion in the range of goods sold through direct sales, should take place in the Russian market, as such companies as Vorwerk (vacuum cleaners) and Thermomix (household appliances) will come soon to this market. But the products will be of higher price category than one, which currently cosmetics familiar to us, ils sold by", - said Tamara Shokareva.

 

 

THINGS TO KEEP IN MIND

Advantages of the direct sales to consumers:

  • opportunity to purchase goods at lower prices
  • time-saving,
  • obtaining of additional information about products
  • receipt of purchased goods in a convenient location and at a convenient time.

    Disadvantages of the direct sales to consumers:

  • intrusive salespeople
  • distrust to them and to the quality of the goods offered.


    Xenia Ranchina

    Study made by the Direct Selling Association of GfK Rus, RPRG, Analytics Research.