Business Consulting BlogLearn more about the Direct Selling Industry in the Philippines

November 10, 2014

Direct Selling is a form of sales where products or services are sold directly face to face to customers, away from a fixed retail location. Companies have the opportunity to connect with single customers, groups, through online sales, catalog sales or by phone through direct selling.

According to Euromonitor International Philippines Report direct selling industry continues to grow, boosted by the increasing domestic consumption that contributes to the 6.4% economic growth in the second quarter of 2014.

is growing faster than any other businesses in the fast-moving consumer goods market in the Philippines. More foreign direct selling groups are setting up their own entity in the country to take part of this booming opportunity.

Today, many Filipinos are willing to buy goods and spend more through direct selling channels. This can be explained by the fact that most of the online direct selling companies offer the possibility to avail a installment scheme and great discounts which allow consumers to buy more. Additionally, direct selling can also be done through personal connection such as friends or family which boosts the trust of a buyer.

Direct selling is definitely a great business model as many operating costs can be minimized in comparison to retail business. For instance, there is no need to maintain a shop since the goods can be sold directly to the client using new technologies or independent partners thus reducing the amount of staff. Online marketing also offers larger exposure to customers making it a more powerful way to market your products compared to traditional marketing.

Challenges in the Direct Selling industry in the Philippines

• The main challenge when starting a venture in the country is the incorporation. Philippines remains one of the most difficulties to incorporate in the world and its government government has also imposed limitations to foreign investors in this category. As a foreigner, setting up a business under direct selling industry requires great local connection as partnership with a local might be required in some cases.

• Depending on the product that an investor will bring in to the country, there might be a need to deal with different government agencies such as the Food and Drugs Administration (FDA) or the Intellectual Property Office (IPO).

• Shipping your goods will also require your organization to deal with the Bureau of Customs. An accreditation is required for every company that wishes to import products in the Philippines.
These challenges can be solve easily if you establish a long term relationship with a relevant partner.

Triple i Consulting offers a complete solution for any investors willing to establish its company presence in the country while eliminating the complexity and minimizing the timeline of registration.

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