![]() Companies that have benefited from creating a perfect storm of low price point (under $50) dynamic, innovative products and a simple, streamlined purchasing process via social media include Younique’s lash product Nu Skin’s toothpaste Colorstreet’s nail products Paparazzi jewelry and SeneGence LipSense. ![]() Best of all, Product Influencers get paid the next day after a qualifying sale.Īnother aspect unique to direct selling is its ability to capitalize on social media impulse purchases. It allows customers that enjoy and believe in the products but don’t want to become distributors in the traditional sense to use their influence to encourage others to buy the products via social media, earning $20 for every product purchase. The brand gains traction within underserved markets, and the entrepreneurs not only have a highly respected brand to partner with, but the flexibility of setting their own schedule and pace.Īdditionally, Total Life Changes recently introduced a Product Influencer Program that’s very reminiscent of affiliate marketing. The company has strategically launched Direct Retail in markets where Kendra Scott has low penetration and no current plans to open a brick-and-mortar location-including Tacoma, Washington Toledo, Ohio St Louis, Missouri and Laredo, Texas. Participants purchase a moderately priced starter kit that includes product samples are given a user-specific URL and receive a 20-35 percent commission on all sales. It borrows from traditional direct selling, but stretches the concept in new ways to help build the brand’s presence incrementally. Its entry into the social selling space, Direct Retail by Kendra Scott, shows tremendous potential. This 20-year-old brand was founded in 2002 and boasts $360 million in annual sales. One recently announced example is Kendra Scott, a multichannel retail jewelry and accessories brand starting a direct/social selling division. There are several very well-known companies and celebrities launching social selling initiatives this year, each with the potential to change and shape the future of the channel. New Ways to Engage and Empower Entrepreneurs And these brands dominate across all categories: direct to consumer, retail, e-commerce and social selling. Traditional retail brands are acquiring or merging with direct selling standouts to create even bigger international beauty brands. And the established retail brand lends credibility and exposure to the direct selling enterprise.Īlthough this trend isn’t new, it is growing and shaping the scope and focus of the industry. Direct selling has robust social selling platforms that the parent company can leverage as well as presence in new markets. It involves either the development of a supplemental direct/social selling brand within the parent company or the acquisition of a direct/social selling brand into a larger conglomerate. This trend goes beyond online direct-to-consumer sales done by a retail company. ![]() The direct selling model is becoming more deeply ingrained within larger retail brands, especially in the beauty and cosmetics segments. Retail giants are now looking to direct selling models to enhance their brand presence and scope.ĭSN Founder and CEO Stuart Johnson explains the strategies behind the trend and shares his thoughts on the top companies inside and outside the channel whose omnichannel approaches are facilitating growth and brand dominance through supplemental brand enhancements, social selling initiatives and strategic mergers and acquisitions. And we aren’t the only ones who’ve noticed. In this month’s cover story, we took a deep dive into how direct selling companies have become true category kings-competing with and even surpassing retail brands that occupy the same space through product innovation, proprietary ingredients, nimbleness and incomparable customer service. ![]() BY STUART JOHNSON | | read / Feature Articles A smart, strategic omnichannel approach is fueling growth. ![]()
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