Direct Sales in Asia: What You Need to Know

Direct sales refers to various business models where a sale is made directly between an individual and a customer, bypassing traditional retail channels. This form of sales has evolved with the advent of social media and has become popular in Asia, especially in China, where global direct sales companies have set up operations.

However, the direct sales landscape in China is unique and governed by strict rules. Unlike western countries, only single-level direct sales is allowed, with multi-level marketing prohibited. There are caps on commissions, recruitment policies, and restrictions on advertising. These regulations aim to protect consumers and maintain stability in the direct sales industry in Asia.

The Direct Sales and Health Supplement Trends

The health and nutritional supplement market in China and Southeast Asia has been thriving for many years, with direct sales as the main selling method accounting for over 50% market share. In the early days of direct sales, consumers were not well-informed about health supplements and sought guidance from direct sales agents. These agents successfully educated consumers, built trust, and helped establish direct sales as a popular method of selling health supplements.

Nowadays, consumers are more health-conscious and have access to a wider selection of health supplements through online channels such as Tmall, Lazada, Shopee and JD, making purchasing more convenient and affordable.

While younger users are turning to online platforms, senior citizens still value the personal interaction and recommendations that come with direct sales. This is especially important for seniors as they require guidance in selecting the right health supplements for their needs. Direct sales can therefore still retain its significant market share, catering to the needs of the aging population in China and Southeast Asia.

Unlock Digital Transformation and Social Commerce in Direct Sales

Socializing has always been at the core of direct sales. In the past, direct sellers went door-to-door or organized family gatherings to promote their products. Today, the modern direct sales model integrates eCommerce, social commerce, and online and offline modes of sales. This convergence creates new opportunities for direct sales to reach new heights. Moreover, the use of digital tools and AI in direct sales in Asia offers numerous opportunities for businesses to increase their reach, enhance customer experience, and drive growth.

At TMO Group, we help direct sales companies leverage the power of eCommerce and social media to expand their reach and transform their brick-and-mortar shops into customer experience centers. Our social commerce platform is compliant with direct sales regulations and is designed to increase customer engagement and retention.

Developing Hybrid Cross-border Strategies

For overseas direct sales companies, entering markets in Asia like for example China may be a challenge due to the suspension of direct sales licenses. However, we help companies adjust their marketing strategies to comply with regulations and tap into the cross-border eCommerce market. Our cross-border eCommerce models help companies launch new products in the international market.

Get in touch with us today to unleash the full potential of your direct sales business with digital transformation and social commerce solutions in China and Southeast Asia!