The Sun Daily May 1, 2013

Big rise in direct-selling revenues

KUALA LUMPUR (Dec 11, 2012):The direct-selling industry in Malaysia is expected to contribute RM140.5 billion to the national economy by 2020, said Domestic Trade, Cooperatives, and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

In his speech at the launch of the Direct-Selling Industry Roadmap today, Ismail Sabri confirmed the government anticipates this industry to contribute RM54.5 billion (RM87.32 billion) during the 10th Malaysia Plan (2011-2015) and another RM86 billion in the 11th Malaysia Plan (2016-2020).

Besides leveraging growing internet and broadband connectivity, savvy marketers are increasingly pursuing more direct initiatives, mailings, catalogues and virtual approaches to target more conspicuous customers, reducing the distribution channel and middleman margins.

According to US Direct-Selling Association reports, this industry generated revenue over US$28.56 billion in USA during 2010, with 74% of the American population having bought at least some product or service through direct channels.

Worldwide revenue accruals for the direct-selling industry are estimated to have crossed US$117 billion in 2011.

Not surprisingly, Malaysia's direct-selling industry revenues have also risen from RM2 billion (in 2002) to RM4.3 billion (in 2008) and RM8.5 billion (in 2011).

The government is estimating this industry's contribution in 2012 to touch RM10 billion. Ismail Sabri also shared insights about the government's plan to facilitate direct-selling industry growth by driving three focal points to be implemented across three phases: 2013 to 2015, 2016 to 2018 and 2019 to 2020.

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