Latest figures released by the Direct Selling Association (DSA) of South Africa reflect that the country’s direct sellers, who are entrepreneurs in their own right, have collectively earned R2,1-billion during the year, 2020.
This but must be seen against the backdrop of the ongoing Covid-19 pandemic and resultant lockdown that severely hampered direct sellers’ ability to trade.
The figures were released by DSA Chairperson Rajesh Parshotam at the DSA’s annual virtual convention held today. He revealed that the total number of individual Direct Selling resellers in the country currently stood at 870 382, which indicates that direct selling is well established across South Africa.
The DSA is an industry self-regulatory body that currently has 24 multinational and local member companies.
Parshotam says the direct selling industry has once again proved its resilience in the face of economic turbulence, adding that it is this resilience that continues to attract so many South Africans to this route to market for products and services.
The total industry size during year 2020, was R7,7-billion, marking direct selling as a sizeable industry.
Parshotam notes that the DSA has seen a surge in interest in direct selling from ordinary South Africans.
“With many households’ incomes coming under pressure due to loss of employment and reduced income, there has been a significant increase in the interest shown in direct selling. The ‘new normal’ has moved the market closer to our industry as people look to supplement, maintain or boost their incomes,” says Parshotam.
However, he notes that as is the case with many other entrepreneurial ventures, earnings are dependent on a number of factors, including how much effort an individual is willing to put into their business.
Parshotam also pointed out that the DSA’s latest figures reflect that the direct selling model is attracting young and vibrant entrepreneurs, with the age profile of direct sellers in South Africa showing that 38,3% of direct sellers are under the age of 35, while 25.9% fall into the 35-44 age bracket. Taken collectively, 64% of direct sellers in South Africa are under the age of 45.
A very encouraging indicator is that 77% of direct sellers in the country are female.
“It is very encouraging to see that women are finding direct selling to be an ideal platform to enter the world of entrepreneurship, due to many reasons including the flexibility it affords them. Women are without a doubt the industry drivers for direct selling as both consumers and entrepreneurs,” says Parshotam.
He also released global key industry indicators for 2020, with figures showing that there are 125,3-million direct sellers globally, operating within a $179,3-billion global industry.
“The direct selling industry offers business opportunity to hundreds of thousands of people in South Africa, with many traditionally marginalised members of society benefiting significantly from the direct selling model,” he says.
“We are also happy to note that the industry has become a key player in providing income opportunities for many South Africans and as such, we believe that the industry is a key player in the country’s economic recovery plan.”