A large number of people are engaged in direct trade in Latvia, and this sector has a stable growth potential – Gintautas Zaleckas, Secretary General of the Baltic Direct Trade Associations, comments on the first independent study in Latvia, which allows a closer look at the direct trade sector, the experience of direct sellers and the potential of the sector.
- 57% of direct sellers – consultants value the opportunity to be their own boss;
- In Latvia, 62% of those employed in direct trade are aged 45-64, 25% – up to 44 years;
- More than half of direct sellers (55%) have been working in this field for more than 7 years;
- 39% devote 1-8 hours per week to direct sales, work another full-time job;
- In Latvia, the sales volume of direct trade companies reached 78 million euros last year
“Direct trading allows you not only to earn, but also to socialize and improve your trading skills. At the same time, direct sellers value the opportunity to be their own bosses, while buyers value consultations and offers tailored to their needs,” he emphasizes.
In Latvia, the sales volume of direct trade companies reached 78 million euros last year, and 59.6 thousand people were involved in this field. Direct sales continue to grow both in the European Union, where the combined sales volume is 28.6 billion euros, involving 6 million people, and also in the world as a whole (with almost 160 billion euros and 114.9 million people involved).
Gintautas Zaleckas continues: “Direct selling is a path of personal and professional growth, where each individual creates his own route to success, offering a product directly to his audience in a way that is understandable, maintaining a unique connection and achieving the growth of his business.” He adds that for some direct sellers this is an opportunity to make money, while for others it is a full-time profitable job both online and during meetings. At a time when bank lending rates are rising, buyers appreciate the opportunity to shop more advantageously, in addition to receiving comprehensive advice online or during a meeting from their direct salesperson who knows the buyer’s needs.
Two-thirds of respondents believe that they have gained more from direct marketing than just making money. 68% of direct sellers appreciate the opportunity to meet new people, 62% think that this is a good way of additional income, 61% stated that the main reason for doing this business is the products of the company in question, and almost as much feel satisfaction when working in this field (60% ), as well as can improve the skills of communicating with people (59%), can be one’s own boss (57%), increases self-esteem (57%). Also, direct sellers see this job as an opportunity to improve their business management and sales skills, as well as allow them to earn while working in another job. Almost half (49%) also believe that direct sales have also improved teamwork skills.
For many, direct selling is a source of additional income. Convincingly more women are employed in this field in Latvia, because the direct sales model allows you to combine your business career with family life. There are 89% of female direct sellers in Latvia, while in Lithuania – 90%, and in Estonia 88%), 64% of direct sellers have a higher education, the average age is 49 years, and 63% of industry representatives live in the city.
G. Zaleckas points out that many direct sellers, entering this industry, stay for a long time: “Direct sales companies in Latvia can be proud of the direct sellers’ satisfaction with their occupation. The study shows that 40% of direct sales representatives have been in this field for more than 10 years, and 35% for 4 to 10 years, 16% have been in the industry for one to three years, and 9% for less than a year. “Of course, as in other industries, it takes time to achieve rapid growth. Our association members do not promise instant “mountains of gold” because we act ethically and responsibly. Instead, we help with advice on how to enter the field so that direct selling becomes a way of life,” he says.
Direct selling allows you to earn additional income for those who have another full-time job. In Latvia, 43% of direct sellers devote up to one hour a week to this activity (18% in Europe), both in Latvia and on average in Europe, 39% engage in direct sales 1-8 hours a week, 12% 8-29 hours a week (Europe 29%) , but a small number (3%) – more than 30 hours a week (in Europe – 12%). Those who spend up to 8 hours a week in this area mainly appreciate the opportunity to buy products at a discount and believe in the brand’s values, while direct sellers who work in this area for more than 30 hours are motivated by independence and flexibility.
In Latvia, the satisfaction of direct sellers with work in this sector is extremely high: 65% are satisfied, 31% neither satisfied nor dissatisfied, but only 3% are dissatisfied. 81% of the respondents answered that they will continue their successful cooperation with the direct sales company, and 85% would recommend the direct sales company they represent to a friend or colleague.
“Direct selling is not only about high-quality products, but also personal service and recommendations from the direct seller. They work a lot both with existing clients and also acquire new ones, where personal recommendations are of great importance,” reminds G. Zaleckas.
62% of direct sellers believe that face-to-face meetings are effective for existing customers, brochures or catalogs are important for almost half (49%), product demonstrations and parties, as well as correspondence on the Internet or e-mails (43%). Some communicate with their buyers by phone (40%), social networks (32%), websites or applications (29%), but in 18% of cases random meetings are also effective.
In Latvia, 64% of direct sellers have higher education (40% in Europe), and 29% have secondary education (55% in Europe). 63% of direct sellers are urban dwellers (46% on average in Europe), roughly the same number of Latvian (17%) and European direct sellers (18%) live in the suburbs, while 18% of Latvian direct sellers and 34% of European direct sellers live in rural areas.
About Research and Direct Selling Associations
This is the first independent study of its kind in Latvia, which allows a closer look at the direct trade sector and the persons associated with it. The study was conducted in March-April 2023 by the global market research agency Ipsos, on the order of the European direct selling association Seldia and Direct Selling Europe, using the Internet survey method. During the research, 25,896 independent direct sellers of direct trade companies were surveyed in 11 European Union countries (Czech Republic, Estonia, Italy, Spain, Latvia, Poland, Lithuania, Netherlands, France, Slovakia, Sweden, Germany), of which 527 were in Latvia.
The Latvian Direct Trade Association is a national voluntary non-profit trade association of leading companies that, with the help of independent sellers/consultants, sell goods directly to consumers outside of certain retail outlets (out-of-store trade), for example at home, at work or in some other place. Since 2010, all three Direct Trade Associations of the Baltic States have been closely cooperating and working as a single unit. Association members are: Amway, Herbalife, Lux, Mary Kay, Nature’s Sunshine, NeoLife International, NL Europe, Oriflame, Zinzino. Additional information about the association http://www.tta.lv/.
2023-12-14 13:12:42
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