Elora tells you everything you need to know about home shopping.
What is door-to-door selling?
12 JUNE 2023
While direct selling was already being emulated in the United States at the end of the 19th century with Avon and then after the Second World War with Tupperware, this fast-changing sector is attracting more and more customers and home sellers around the world. Today, one French person in five buys from home at least once a year. Elora, prêt-à-porter à domicile, takes a look at this thriving sector, which continues to attract new customers and adopt new codes.
DIRECT SELLING, A BOOMING SECTOR
As we mentioned in our article on the Direct Selling Federation, direct selling or door-to-door selling is considered to be one of the most dynamic economic sectors in the world, as Paul Southwortth, Managing Director of the UK Direct Selling Federation, explains.
In France, in 2021, Direct Sales will account for €4.58 billion in sales, with 706,600 people working in the sector. On a global scale, the figures are impressive: sales generated by direct selling amount to no less than 186.1 billion euros, with more than 128 million distributors!
It's a highly promising sector, revolutionising employment and remuneration, and Elora is part of it!
WHY IS THE DIRECT DOOR-TO-DOOR SALES SECTOR SO ATTRACTIVE?
From the buyer's point of view, doorstep selling meets a real need on the part of this clientele, who value a new, more personal and individualised way of consuming. Selling or buying from home satisfies this search for proximity that can't be found anywhere else. Taking part in in-home meetings means enjoying a moment of pure conviviality and education that reassures customers. In short, it's a positive experience that creates a bond of trust and exchange between sales advisers, hostesses and customers. One of the powerful levers of direct selling is recommendation, which takes place at every level of the relationship and enables exponential growth in the recruitment of sales advisers, hostesses and customers.
As far as home-based saleswomen are concerned, financial independence is the most important factor in their choice of this activity, as is the flexibility of their schedule.
As Paul Southwortth, Director General of the UK Direct Selling Federation, points out, "the future (of direct selling), I have to tell you, looks brighter than ever".
THE EVOLUTION OF DIRECT SELLING OVER TIME
The evolution of profiles and motivation in home selling
Home sales is attracting more and more profiles. Once made up of 100% women, this industry now attracts 20% of men (80% women), with an increase in the number of over-50s taking up jobs as VDIs (independent door-to-door salespeople). What's more, this distribution channel is attracting more young people, particularly graduates who are combining several jobs with an increase in the number of hours worked!
The very motivation for VDI status has changed over the years: whereas it used to be used more as a hobby, direct selling is now seen as a profession in its own right. according to Jacques Cosnefroy, General Delegate of the FVD, 30% of VDIs see it as a way of supplementing their income (between €100 and €500 a month), 30% of VDIs see it as a way of multi-tasking (combining two jobs), and 40% of VDIs see it as a full-time occupation.
Changes in direct selling methods
In terms of sales methods, there have also been changes, with 70% of European sales made through direct interaction with the customer, in direct competition with the internet, compared with 30% of European sales made through meetings. Whereas in the past, simple product demonstrations dominated the direct sales sector, the "workshop" format has become more attractive in 2017. Sales are becoming real live collaborative test areas, where everyone takes part in showcasing the product.
All these changes are contributing to the flourishing growth of this sector, which is estimated to be in double figures in Europe every year!
Not sure about becoming an Elora Home Sales Manager? Read our article on the 5 taboo questions we ask ourselves before taking the plunge.
What is home selling?
The figures bear us out: with a turnover of over €4.5 billion, home shopping is a healthy business sector. Popular with customers, salespeople and businesses alike, it is gaining new fans every year. But what exactly does door-to-door selling involve?
Elora explains everything you need to know about door-to-door selling.
Home selling: a regulated activity
Door-to-door selling refers to a distribution network that uses door-to-door sales. This involves the salesperson going to the customer's home (or workplace) to sell the products or services of the company they represent.
In France, door-to-door selling is a highly regulated activity, governed by the Commercial Code and the Consumer Code.
It is strongly recommended that home sellers undergo training when they start their business. Most home sales companies offer training to their new salespeople.
Training enables home sellers to acquire all the knowledge they need to run their business: from information about the company, its products and services, through marketing and sales, to consumer rights.
The sale becomes effective when the customer signs the order form. The order form must contain the following information:
- Identity of the seller and the company it represents
- Price of products and services and payment terms
- Delivery date, time and cost
- Withdrawal terms (under the Consumer Code, customers have a 14-day withdrawal period)
- Legal or commercial guarantees..
VDI: an advantageous status for sellers
The home sales sector is booming, attracting new salespeople every year. Why home selling?
The sector benefits a generation looking for independence and well-being at work. But what are the advantages and disadvantages of being self-employed?
Working as a self-employed door-to-door salesperson with a VDI contract means that you benefit from a legal and regulated activity. Even if the VDI is not an employee of the company it represents, it benefits from a clear and secure social, tax and legal regime.
However, social security cover for VDIs has its limits. For example, they do not contribute to unemployment insurance or a supplementary pension fund.
Home sales: the new Eldorado for companies?
Door-to-door selling is a special sales technique, popular with companies looking to improve their customer relations.
This distribution network enhances the customer experience: sales meetings are friendly. The salesperson listens to the consumer and gives him or her all the advice needed to use the products.
Which companies are recruiting for home sales? For a long time, the sector was dominated by a handful of companies specialising in door-to-door sales, but the trend is now changing. The success of door-to-door sales is being emulated, and companies that previously used other distribution channels are now moving into this market.
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