DIRECT SELLER Malaysia ENG|Vol 2|No 1|2020|MDTCA Datuk Muez

ISSUE 1 / 2020

CREATING BUSINESSFRIENDLY GOVERNANCE Datuk Muez Abd Aziz, Ministry of Domestic Trade and Consumer Affairs (MDTCA)

RECORDSETTING 2018 DIRECT SELLING RESULTS

A P U B L I C AT I O N O F

ISSN 2716-6171

RM10

DIRECT SELLER MALAYSIA

Cover Datuk Muez Abd Aziz, Ministry of Domestic Trade and Consumer Affairs (MDTCA)

COVER STORY 2

CONTENTS COLUMN

Creating business-friendly governance Former MDTCA Secretary-General Datuk Muez Abd Aziz reveals the supportive stance that his department has towards direct sellers.

18 Members directory

FOCUS 6

Creating happiness with the root of wellness

10 Record-setting 2018 direct selling results 13 Free enterprise 14 How Agenda 2030 affects you 16 Direct Selling communications

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COVER STORY

CREATING

BUSINESS-FRIENDLY

GOVERNANCE A morning chat with the busy but approachable Secretary-General of the Ministry of Domestic Trade and Consumer Affairs (MDTCA), Datuk Muez Abd Aziz reveals the supportive stance that his department has towards direct sellers as well as his outlook for 2020 to help the industry thrive and keep up with IR4.0.

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n the well-kept, simple but pleasantly decorated office, DSAM sat for a chat with Datuk Muez who is also the Chairman of the Companies Commission of Malaysia (SSM) since January 9, 2019.

What was the projected sales turnover for the direct selling industry in 2019?

The ministry has targeted a sales turnover of RM19 billion for 2019.

This figure is derived from the previous year’s target that forecasts a growth for the industry.

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What is this figure in relation to the national economy in 2019?

I’m happy to share that for 2018, our target was RM17 billion of sales and we have achieved a total of RM17.9 billion. We’ve achieved our targets in the last three years with a forecast growth of 5% to 7% annually.

The targeted sales turnover of RM19 billion is challenging, but I believe the ministry can rise to the occasion, believing that good ethics and good companies, products and services provided as well as government support are vital components that contribute to the stability of the industry

because we want to create a businessfriendly government.

I’ve instructed my officers to be more “business-thinking” because even though we’re government servants, we still need to understand businesses so I try to inculcate this sort of culture among our officers.

We want to cut short the processing time (for businesses) and treat them as our business partners.

How many direct selling licences has MDTCA issued as of December 31, 2019?

As for December 31, 2019, the Ministry has issued 427 direct selling licences.

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COVER STORY

“Direct selling is very advanced in Malaysia and especially foreign companies use Malaysia as a base for expansion within the region.”

Does the ministry expect more licenses to be issued in 2020, and why?

Yes, the ministry expects more licenses to be issued this year.

I always instruct my officers to find ways to be efficient and create a friendly approach whilst undertaking duties with integrity.

Direct selling is very advanced in Malaysia and many direct sales companies, especially foreign companies, use Malaysia as a base for expansion within the region.

We have homegrown companies that ventured overseas as part of their expansion exercise, so in a way, local products have penetrated markets overseas. We don’t only want our products to be there but also for the Malaysian name to be ever-present throughout the world.

Furthermore, Malaysia is ranked top 10 in the world and

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top 5 in the Asia Pacific region for direct selling.

The Direct Selling Blueprint was initiated in 2013 and lasts until 2020. Has the Blueprint achieved its goals?

The blueprint was initiated in 2013 and the direct selling industry has evolved with tremendous leaps over the years. In the last couple of years, we’ve seen technology as a catalyst for such a transformation and it won’t end there.

We are in the midst of taking stock of the blueprint and hope to complete it by the fourth quarter of 2020. I’ve asked Shamsulzaman, the head of this direct selling cluster to look into it and come up with a blueprint for 2020 to 2025.

The new blueprint will be discussed with the minister and even though the previous one was set for 7 years, we don’t want something too long, hence, we think 5 years

should suffice. The government has set the Shared Prosperity Vision for 2030. I think five years is more sustainable.

What is MDTCA’s next step as the Direct Selling Blueprint has come to a close?

The ministry believes that a new enhanced blueprint is vital for the growth of the industry.

We need to give greater emphasis to technology, new marketing approaches, human capital, and not forgetting relevant laws or regulations that can strengthen the wellbeing of the industry.

We’re working on it now and are coming up with some workshops and perhaps we could consult with DSAM as well as all other stakeholders to discuss the issues we’d like to focus on for the next five years. This is needed as we’re aware that with IR4.0, many changes are happening.

Sales in direct selling have been growing steadily over the last 22 years. With the emergence of online e-commerce platforms, what is MDTCA’s outlook for the industry?

Direct selling has always been a person-to-person business.

Consumers want to have a real feel of the product, proper explanation on how to use or consume the products, etc. These actions are not provided by sellers on e-commerce platforms. Judging from this, I believe direct selling will continue to grow.

As I have mentioned earlier, technology is vital as it creates an upper hand for business to be more efficient and to an extent, resilience with the ever-changing environment.

I’m confident the industry will grow because we have a very good relationship with DSAM. Currently, we’ve registered 427 companies and I think the figures for this year will grow.

Most importantly, we want genuine players and we don’t want to be associated with unethical players. That’s why the government regulates this and wants them to be registered with the association.

At the same time, we also want players to embark on technologies such as e-wallets. The direct selling industry must be a few steps ahead and be on par with other business models in making technology a vital element in its progress to a higher level business environment.

How does the ministry view the issue of direct sellers selling online?

We can’t avoid online selling as everyone is going online for business so we won’t stop this.

But we’ve come up with a new agreement with the online selling platform providers.

We want to regulate businesses and make sure consumer rights are protected. Thus, we’ve to do this properly with certain SOPs. Sellers can engage with any online platform business providers but they must have a proper agreement with the providers. There must be a contract between sellers and the online platforms.

How can DSAM work together with MDTCA to enhance the Direct Sales industry? What does the Ministry require from DSAM? I’m grateful that DSAM has all these while given much support to the ministry. We’ve also given directives to all players that they must join, that it is compulsory for them to join any direct selling associations like DSAM so that it is easier for us to disseminate any information, to regulate businesses, easier to for us to engage with them between the government and the industry.

I ask that DSAM to always be our eyes and ears for the industry.

That’s very important so we will be aware of any issues and any misdoings by players. As the saying goes, prevention is better than cure.

Therefore when you bring up matters concerning the industry to the government, only then can the government take appropriate actions. As we’ve built a good relationship with DSAM, hopefully, this year, we will also get closer.

Most importantly, we need to come up with more informal events to meet with the association.

The ministry would most probably come up with, for example, high teas with (DSAM) members for less formal, but efficient engagement(s). We do not want to build more walls, but to build more bridges with members of DSAM. We bridge the gap between government and industries for the sake of the country.

That’s why it is high time we take a look into the Direct Sales and Anti-Pyramid Scheme Act (1993).

Ever since we introduced the law, we’ve not revised the law very much.

Certain things have changed and the last amendment was in 2010.

That is the challenge for this year.

We’ve to get down to check on some of the provisions under the law which have become obsolete.

We have to engage with DSAM and other associations to get their input about the industry because the era of ‘government knows everything’ is no more. We need the engagement, feedback and input from the industry.

We won’t repeal the law but look into provisions so that the law is friendlier to the industry and the country.

Any parting words for our readers?

Direct selling is unique, full of creativity, vibrant people and it provides endless opportunities.

I have great expectations for the industry in years to come. I believe that DSAM is on track to provide the necessary guidance for its members.

The relationships that the association has established with the ministry is vital in making the industry’s environment safe for members. They know the ministry will take time to hear their concerns and react to matters accordingly.

I would like to congratulate DSAM for its contribution to the development of the industry and thank the current committee members and the past committee for their commitment to making the association relevant. I believe DSAM has created a sound foundation for the industry to have a solid presence.

• Datuk Muez Abd Aziz has been appointed secretary-general Defence Ministry effective February 1.

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Focus

CREATING HAPPINESS WITH THE ROOT OF WELLNESS CREATING HAPPINESS

Creating happiness since its founding in 2018, Annkang believes that happiness is a journey, not a destination.

This is also the journey of Annkang’s founder, Dato’ Louis Chong, who believes that nature holds the key to wellness. In 2008, his search for the most nutrient-rich natural ingredient in the world led him to the world of marine research along the east coast of Malaysia.

That’s when he stumbled upon the incredible potential behind the golden sea cucumber extract.

Inspired by its health benefits as a functional food supplement, he realised that the best way to bring honest-to-goodness formulations to everyone, was to connect expert manufacturers with consumers directly. And so, a progressive marketing model was born, for aspiring entrepreneurs to share the goodness of holistic health.

Dato’ Louis Chong, Founder and CEO of Annkang Wellness.

WHO IS ANNKANG?

A word that signifies “harmony and health”, and a name that connotes the essence of happiness in life, Annkang embraces the spirit of “creating happiness” and bringing true happiness to everyone, everywhere.

Core to its beliefs is the IKIGAI philosophy: the Japanese secret to a long and more fulfilling life, with origins in Okinawa, home to the largest population of centenarians in the world.

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CREATING ENTREPRENEURS Apart from creating happiness, Annkang also provides a platform for people to realise their full potential through a healthy business opportunity.

Successful entrepreneurs of Annkang get to enjoy lucrative bonus payouts through Annkang’s fair and rewarding marketing plan, plus additional incentives such as overseas incentive trips and car funds.

With the implementation of an education system called AES (Annkang Educational System) that focuses on entrepreneurship

development through various training and programmes, Annkang makes every effort to ensure that the education system is constantly reviewed to identify learning objectives.

CREATING WORLD-CLASS QUALITY PRODUCTS

Annkang’s product portfolio delivers the roots of wellness based on four pillars. Through a combination of functional foods and nutricosmetics (the science beneath our skin), customers can experience a boost of beauty and feeling of wellness inside and out.

Annkang also continuously strives to ensure that all its products meet the highest quality standards.

All Annkang products are accredited with certifications, which include HACCP, GMP, HALAL and ISO. Products that are currently offered in Annkang are Seagold Liquid Golden Sea Cucumber (Annkang’s flagship product), Chlorophyll Plus Liquid, Acai King, Koragen Mixed Collagen Powder Drink, You Qie Mixed Botanical Drink, Hydrogen Water Specialist, Seagold Ajwa Mocha and Aurum – The Life Cream.

CREATING A HOLISTIC WELLNESS CONCEPT

Annkang’s philosophy of wellbeing is based on detox, regulate, and boost.

Detoxification – Refreshing and cleansing our bodies of harmful toxins, which are substances that cause negative health effects inside and outside our bodies.

CREATING AN INTERNATIONALLYRECOGNISED BRAND NAME • Malaysia Health & Wellness Brand Awards 2018 - Nutrition Supplement Category (Seagold Liquid) • The BrandLaureate Prominent Business BestBrands Awards 2018 - BrandLeadership Award (Dato’ Louis Chong) - Wellness Health Supplement (Annkang) • The Asia Halal Brand Awards 2019 (AHBA) - Promising Brands: Best Nutritional Supplement (Annkang Wellness) • Malaysia Health & Wellness Brand Awards 2019 - Nutrition Supplement Category (Seagold Liquid) - Health Food Category (Seagold Ajwa Mocha) - Personal Healthcare Category (Aurum, The Life Cream) Regulate – Reviving our eight major systems: circulatory, immune, skeletal, excretory, muscular, endocrine, digestive, nervous and respiratory. Each relies on the other to keep the human body healthy and happy, and in harmony.

Boost – When we’ve cleansed and controlled our systems, it’s time to give our bodies a boost! Annkang’s products are enriched with essential ingredients that provide positive health benefits, optimising our intake of vitamins, minerals and nutrients.

On top of that, Annkang sees the importance of beauty wellness and offers a range of anti-ageing, whitening and slimming products.

CREATING HOPE

It is Annkang’s will to restore hope and make impactful changes in people’s lives through corporate social responsibility activities towards building a more caring and inclusive society together.

In 2018 and 2019, two blood donation drives were organised to raise awareness about the positive impact of blood donation and to provide relief for blood shortage and save lives.

While seeking for a worthy cause in Malaysia, Annkang discovered a neglected opportunity in mental health – depression, the leading cause of ill health and disability worldwide according to the World Health Organisation.

As a champion of positivity and a believer of mental toughness, Annkang feels compelled to address this silent disrupter in life.

This is Annkang’s way of helping its people and the society to reach their true happiness potential, together, as one.

the world by taking its business to the international shores. Currently, Annkang has businesses in Singapore, Mauritius, and will soon expand its footprint in Vietnam, China, and the Middle East.

Visit www.annkang.com for more information.

CREATING INTERNATIONAL OPPORTUNITIES

Believing that everyone on earth deserves a life filled with happiness, Annkang is determined to spread the message of happiness throughout

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RECORDSETTING 2018 DIRECT SELLING RESULTS 118.4 MILLION PEOPLE ARE INVOLVED IN THE INDUSTRY, CONTRIBUTING TO A TOTAL SALES OF US$192.9 BILLION WORLDWIDE.

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he World Federation of Direct Selling Associations (WFDSA) has announced global direct sales of US$192.9 billion for the year ending December 31, 2018.

Worldwide retail sales showed a year-over-year increase of 1.2%, up from US$190.6 billion in 2017.

Of the total 2018 sales, Asia Pacific is the biggest contributor with US$89.168 billion. In Asia Pacific, Malaysia was ranked 4th, after China, South Korea and Japan.

Malaysia brought in US5.287 billion.

Globally, Malaysia was at 9th.

Taking the top global spot was China with US$35.732 billion, followed by the United States with US$35.350 billion.

According to the WFDSA figures, the world’s shining stars in 2018 in terms of volume increases were Vietnam (30%), Argentina (23%), and Israel (15%).

GLOBAL DIRECT SELLING – 2018 RETAIL SALES Africa/Middle East 1% Mexico 3%

Malaysia 3%

Taiwan 2% Other 21%

Brazil 5%

Europe 21% Asia/Pacific 46%

Japan 8%

Germany 9%

Americas 32%

Regional Sales

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France 3%

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China 18% Korea 10%

United States 18%

The number of direct sellers in the world increased in 2018 by 1.7%.

China grew by 2%, reaching 5.6 million according to WFDSA’s estimates. This number decreased in the United States by 0.7% (to 16.5 million). Roughly, 60% of the world’s total direct sellers were in the Asia Pacific region.

SALES CONTRIBUTION BY PRODUCT – MALAYSIA 2018 Home Improvement 1%

Home Care 1%

Books, Toys & Stationaries 3% Food & Beverage 5%

SALES BY PRODUCT CATEGORY Globally, wellness products take the cake, making up 33.2% of global sales, followed by cosmetics and personal care at 31.2%.

Wellness category is always strong in Asia-Pacific and this was again, the case in 2018. In almost all markets, this category generated more than half of the total direct sales volume. The figure for the United States in 2018 was 35.6%.

In the distant third are household goods and durables at 12.8%. Others are clothing and

Clothing & Accessories 5%

Wellness 52%

Household Goods & Durables 16%

Cosmetics & Personal Care 17%

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2020 / Issue 1 / Direct Seller Malaysia /

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118.4 Million People In Direct Selling Million 120

10.5 million are full-time,

devoting 30+ hours weekly to building their direct selling businesses.

who have recently joined; many who join because they love the product and want to purchase at a discount.

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2017

60

64.9 million others include those

The global sales force grew to record numbers, as well, up 1.6% and reaching a total of 118.4 million people involved in direct selling globally.

This figure includes over 53 million independent representatives who are working to build their direct selling businesses either as a full-time career or part-time to earn supplemental income.

2016

118.4

80

devoting up to 30 hours weekly to building their businesses.

GLOBAL SALES FORCE

116.6

100

42.9 million are part-time,

accessories (6.2%), financial services (3.2%), foodstuff and beverage (2.7%), utilities (2.7%), books, toys, stationery (2.3%), home care (2%), and home improvement (1.9%).

For Malaysia, wellness products continued to dominate the industry at 52%. In second place, were cosmetics and personal care at 17%, followed by household goods and durable (16%). The popularity of these products mirrored the global data.

Food and beverage products were at 5%, so were clothing and accessories. Meanwhile, books, toys, stationery were at 3%, home care and home improvement were at 1% each.

104.6

113.7

40 20 0

2015

2018

THE NUMBER OF BOTH WOMEN AND MEN JOINING DIRECT SALES HAS INCREASED YEAR-OVER-YEAR

74% Women

26% Men

Women also made up the backbone of the industry, 74% of the sales force. The number of both women and men joining direct sales has increased year-over-year. The industry empowers countless female entrepreneurs around the world. Now men are recognising the opportunity and joining the ranks.

Focus

FREE ENTERPRISE DIRECT SELLING’S HISTORY, CHALLENGES AND OPPORTUNITIES.

By Frederick Ng, Immediate Past President of DSAM. He was the President from 2011 to 2017.

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ooking back through the 20 years of experience in an association that champions Direct Selling and 16 more years when I found my calling in this industry, today marks the crossroads of the past and the future. The future as I think of it, is inviting us to an environment dominated by the Internet. This is a world of virtual reality compounded with the high speed of communicate and dispersing of information. Unfortunately, this very technology can also blur the distinctive lines between Direct Selling and illegal scams.

The future is bright, but the path may not be easy. The future for those of us here is as bright as ever, especially within the Direct Selling industry. As for tomorrow, there will definitely be “cloudy days” ahead. Persevere, and you will see the end of the rainbow. Direct Selling will always

adapt and progress together with the sign of the times.

Decades ago, when the Direct Selling industry in Malaysia was unregulated, there was ease and flexibility of incorporating and running a Direct Selling business. Professional management was practically unheard of, companies were set-up with little or no capital, and many companies were untraceable. Direct Sellers were left to their own ‘ways’ of selling.

During the 1990s in Malaysia, the Direct Selling industry left its “emergent” status and leapt into a golden age. Local operators started to mushroom. It was lively, but also competitive. We had to deal with foreign companies that expanded from abroad who were eager to share a piece of our economic growth. Who could also forget classic pyramid schemes, and get-rich-quick Ponzi’s? Even without internet at those times, deception was rife.

However, most tricksters at that time also ran out of steam quickly because of geographical limitations. The first onslaught left many penniless and angry.

Few realised that these illegal scams masquerading as Direct Selling, left the industry with the enormous chore of rebuilding the trust that was associated with Direct Selling.

Then came the new millennium with the dot com bubble. The Internet was here and that was when things got complicated.

Perhaps, this was the first time in human history that we found it difficult to distinguish good and bad, drawing the line between fiction and reality. Within the realm of internet, money games and scams featuring high returns thrived. The combined speed of broadband and human greed nearly erased the trust and goodwill reflected within Direct Selling over the past decade.

This was accentuated by billion-

dollar overnight sales of e-commerce companies such as Alibaba, Amazon and Taobao, eclipsing the proud heritage of double-digit growth of the Direct Selling industry. The illusion of big markets, fast results, and large turnovers has inspired a whole new generation of micro-business owners to go ‘online’, raising concerns of its growing borderless presence. Today, with e-commerce responsible for fulfilling instant gratifications and money games taking on all shapes and sizes, is there hope for Direct Selling?

Yes, Direct Selling will not only be sustaining in the age of internet, but also thrive. This industry is peopleoriented. A successful Direct Selling channel, especially Multi-level Marketing Plans, allow geometric growth through a structured network down the line. It allows for income generation through the sale of products and services throughout the structured Plan for full-time or parttime Direct Sellers.

Having been in the industry long enough, I stand by my belief that this mode of management, through Multilevel or Single Level Marketing Plans, will continue into the advent of the digital age.

With the introduction of Internet, Direct Sellers and consumers are allowed to form relationships and have interactions without being constrained by time and geography.

The internet, thought by many Direct Sellers as the apocalyptic innovation that will end their careers and prospects, will in-fact elevate the business model and service quality to another new realm.

Free Enterprise is a great idea but must be fueled by bold individuals and their dreams. The industry will continue to surge forward because there are those willing to dream of tomorrow, and how much better it is going to be. Long live Direct Selling!

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HOW AGENDA 2030

AFFECTS YOU

OVER THE LAST DECADE, ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RISKS HAVE GAINED INCREASING ATTENTION, PARTICULARLY AMONG INVESTORS, REGULATORS, AND CUSTOMERS.

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n 2015, all 193 member countries of the United Nations adopted a resolution known as the Agenda 2030. The aim of this agenda is the achievement of sustainable development until 2030 that is the achievement of human development needs across the globe, taking into account the constraints of natural ecosystems. The achievement of the Agenda 2030 is guided by 17 Sustainable Development Goals (SDGs) or “Global Goals”, which are accompanied by a total of 169 targets and 231 indicators.

Engagement with the SDGs is not only a “nice-to-have”; it simply makes good business sense. In fact, it is estimated that the private sector can unlock more than US$12 trillion in business opportunities by delivering on the most promising Global Goals.

Business leaders in Asia and around the world have already recognised that the pursuit of SDGs offers outstanding opportunities for value creation and value protection, resulting in measurable returns for businesses and society.

Today, some of the world’s largest organisations are seeking to proactively manage and report

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on their environmental, social and governance (ESG) risks and to partner with or invest in “ESG ready” companies. Sustainability factors are part of the fundamentals needed to attain higher returns, organisational resilience, and stakeholder trust. Companies that neglect ESG risks do so at their own peril.

Truly sustainable business incorporates all three components: 2030 Purpose, Sustainability Risk Management (SRM), and Creating Shared Value (CSV). The implementation of the components typically follows a process that starts with an assessment of the corporate strategy and associated value chain, and consequently is followed by

Adapted from Deloitte’s On The Board’s Agenda – Sustainability report the design and deployment of responses and monitoring and control measures.

The SRM framework summarises key dimensions to help executives and governance leaders to make an impact that matters by building legacy, prosperity and continuity for your business.

The fundamental premise of the CSV approach rests on the notion that unmet societal needs constitute opportunities for businesses to boost their bottom line. It is upon the directors and managers of each firm to understand and act upon the most promising and relevant of such opportunities through leveraging the business’s resources and capabilities.

ESG METRICS RECOMMENDED BY THE WORLD FEDERATION OF EXCHANGES (2018)

ENVIRONMENTAL

• Greenhouse gas emissions • Emissions intensity • Energy usage • Energy intensity • Energy mix • Water usage • Environmental operations • Environmental oversight • Climate risk mitigation

SOCIAL

• CEO pay ratio • Gender pay ratio • Employee turnover • Gender diversity • Temporary worker ratio • Non-discrimination • Injury rate • Global health & safety • Child & forced labour • Human rights

GOVERNANCE

• Board diversity • Board independence • Incentivised pay • Collective bargaining • Supplier code of conduct • Ethics & anti-corruption • Data privacy • Sustainability reporting • Disclosure practices • External assurance

UN GLOBAL COMPACT Launched in 2000, the UN Global Compact (UNGC) is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to take steps to support UN’s goals. It provides a framework for developing more sustainable and responsible business practices.

Participation in the UNGC is open to companies of all sizes and location that are serious about their commitment to implement the UNGC principles throughout its operations and to report on their progress, with the exception of entities in the tobacco industry.

By joining the network, businesses are connected to the

knowledge and expertise to set and meet their sustainability objectives and achieve long-term growth. The mandatory annual report of progress helps to build trust and transparency of member companies.

Sustainability leaders will be formally recognised by UNGC, and obtain publicity as their success stories will be featured and promoted across different platforms.

GLOBAL COMPACT NETWORK MALAYSIA (GCMY) The GCMY is the local chapter of the UN Global Compact (UNGC) that supports Malaysian members by enabling them to contribute towards the SDGs and achieve business excellence.

On the ground, companies

SDG PERFORMANCE PEOPLE

The sustainability talent and culture of an organisation.

The level of engagement and inspiration to perform at both the skill and will level.

RESOURCES

Financial and non-financial components available to an organisation to implement sustainability.

of companies attribute progress on their sustainability work to participating in the Global Compact.

80%

of member companies agree that being part of the network increases trust in the company through a commitment to sustainability.

58%

of member companies agree that UNGC promotes action on sustainability within the company.

LEADERSHIP

The capacity to inspire and lead people to perform at optimum skill and will level and being key role models for sustainability.

face unique challenges to operating responsibly and have different opportunities to make a positive impact. GCMY advances corporate sustainability at the strategic and grassroots level by helping companies understand what responsible business means within global, regional and national contexts and facilitate outreach, learning, policy dialogue, collective action and partnerships.

GCMY provides a universal language for corporate responsibility and provides a framework to guide all businesses regardless of size, complexity or location.

WHY SHOULD BUSINESSES ENGAGE WITH UNGC LOCAL NETWORKS?

81%

PROCESS

The availability of clearly defined sustainability processes, SOPs and standards and integrated with capacity for innovation.

10 PRINCIPLES OF THE UNGC Businesses should support and respect the protection of internationally proclaimed human rights

Make sure businesses are not complicit in human rights abuses

The elimination of discrimination in respect of employment and occupation

Businesses should support a precautionary approach to environmental challenges

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining

Undertake initiatives to promote greater environmental responsibility

The elimination of all forms of forced and compulsory labour

Encourage the development and diffusion of environmentally friendly technologies

The effective abolition of child labour

Businesses should work against corruption in all its forms, including extortion and bribery

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DIRECT SELLING COMMUNICATIONS A GUIDE ON COMMUNICATIVE MESSAGING, LANGUAGE, VOICE AND TONE.

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ecently, the World Federation of Direct Selling Associations (WFDSA) has published a guidebook on communications especially for the industry. It is to help develop consistent communications that is understood by the audiences.

AMONG THE GOALS OF THE GUIDEBOOK ARE • Enable direct selling companies

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and direct sellers to believe and have confidence in the industry they represent and inspire them to be proud advocates of their industry.

• Enable sceptics/influencers to have a better understanding of the direct selling industry for fair and balanced reporting and regulating.

• Enable the public to have a general understanding of direct selling and enable open discussions which will enhance their willingness to learn more about the products and the business model.

RESEARCH Through a series of live dial sessions conducted in three continents globally, we had measured in realtime how prospects (people who are open to earning additional income) and sceptics (reporters, academia, government representatives) respond to messages and words.

A quantitative survey was also conducted to validate the learnings from the live dial sessions across these three audiences.

THE HIGHLIGHTS OF WFDSA’S RESEARCH ARE:

1Lead with products

Products legitimize direct selling and brings greater credibility. Lack

of brand awareness, usage of “#1 claims”, and limited connectivity of products to a company were raised as key issues among sceptics.

2Set realistic expectations

The phrase “entrepreneurship” comes across as risky and expensive.

But when messaging as secondary, part-time, or supplemental attitudes quickly change.

3

Emphasise consumer protections

Do this among sceptics so they better understand the low-risk, lowcost, money-back guarantees. Hence, they quickly moved to more positive reactions.

the overall value of 4Highlight direct selling

Understanding the additional benefits of personal growth through training, mentoring, and lifestyle flexibility compelled sceptics.

5

Seek third-party endorsements

Sceptics mindset changed when credible third-party endorsements were offered.

OUR TONE Direct selling has always been about the people. Our tone needs to reflect that by being personal and must balance optimism and credibility.

But we also need to be credible and understand that sceptics will be very sensitive to anything that sounds overly enthusiastic or unsubstantiated. Our tone must balance optimism and credibility.

Examples of the right tone are authentic, confident, transparent, fact-based, approachable, inclusive, realistic, enthusiastic and candid.

Meanwhile, wrong tones include superlative, artificial, exaggerated, condescending, clinical, commercial, overly emotional and pushy. * The article is an excerpt of a WFDSA publication ‘This Is Direct Selling’.

COMMON Q&A What is direct selling?

Phrases to use when answering • Proven track record of success • It’s not always easy • It is a low-risk way to own a business – it takes very little, if any, capital investment.

• It offers the chance to develop new skills and be mentored by experienced leaders.

• Earnings are in proportion to efforts.

• It provides opportunities to meet and socialise with people.

• It offers flexible work schedules.

Phrases to avoid • World-class • Industry-leading • Entrepreneur (for prospects) • Potential (for prospects) • #1 claims (*)

How do independent representatives make money?

Independent representatives make money only when customers buy products or services available through them. They sell products at a markup, like any retail business, to make a retail profit.

They earn commissions or bonuses from the company, based on their personal product sales volume. As their business grows, they can earn additional bonuses or commissions from the company based on the product sales volume of their team.

They are rewarded with incentives for key achievements in growing their business and helping their team succeed.

These incentives offer business trips to exciting places and additional cash awards.

Are independent representatives required to spend a lot of money on training materials and events?

No. Many direct selling companies offer free training, which can provide individuals with the tools they need to reach their goals. Part of the appeal of direct selling for some individuals are the skills they acquire through working with their direct selling company – public

speaking, selling, leadership, general business management, etc.

Doesn’t direct selling focus more on recruiting than selling?

No. Independent representatives make money only when the product or service is purchased – never from recruiting.

Why is direct selling sometimes mistaken for a pyramid scheme?

In legitimate direct selling, representatives make money only from the sale of products – never from recruiting.

Without product sales, nobody makes money. Legitimate direct selling also does not require product purchases and offers representatives and customers consumer protections, like satisfaction guarantees, warranties, and product returns.

All direct selling companies agree to be bound by the WFDSA code as a condition of admission and continuous membership in a national association.

Given the role of the internet and retail sales, do you worry direct selling is no longer relevant?

Direct selling has actually become even more relevant. Now, more than ever, people look to their peers for recommendations on what to buy. Direct selling is a person-to-person business. The internet and social media allow people a greater opportunity to talk about products they know, to people they know.

Why don’t you sell in stores?

Direct selling values a person-to-person retail model in which customers have access to the service and support of a real person who knows the value of the products or services, and is interested in their customer’s satisfaction.

Also, because direct selling companies don’t necessarily have the same overhead costs associated with conventional stores having physical buildings, they can reward the representatives who sell their products or services who rely upon the model as an income opportunity.

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Members Directory

A

Agape Superior Living Sdn Bhd Tel: 03-2732 5716 Website: www.agapeatp.com AMC Allied Metalcraft Corporation Sdn Bhd Tel: 03-8081 7223 Fax: 03-8081 0277 Website: www.amc.info/en-my Americ Corporation Sdn Bhd Tel: 04-229 3470 Fax: 04-229 3480 Website: www.americ.com.my Am Life International Sdn Bhd Tel: 03-8070 7616 Fax: 03-8070 4616 Website: www.amlife.my Amway (Malaysia) Sdn Bhd Tel: 03-7946 2288 Fax: 03-7946 2399 Website: www.amway.my

Chini Enterprise (M) Sdn Bhd Tel: 03-4048 1268 Fax: 03-4041 9918 Website: www.chini.com.my ChungHo (M) Sdn Bhd Tel: 1800 88 6677 Website: www.chunghomy.com.my CNI Enterprise (M) Sdn Bhd Tel: 03-5569 4000 Fax: 03-5569 1078 Website: www.cni.my Conforer Global Sdn Bhd Tel: 03-9283 5289 Fax: 03-9285 3449 Website: www.conforer2u.com Cosway (M) Sdn Bhd Tel: 03-2116 1188 Fax: 03-2148 5444 Website: www.cosway.com.my Coway (Malaysia) Sdn Bhd Tel: 03-2059 1000 Fax: 03-2181 1929 Website: www.coway.com.my

Annkang Wellness Sdn Bhd Tel: 03-7733 8873 Website: www.annkang.com

Creative Dreams International Sdn Bhd Tel: 03-7954 9196 Fax: 03-7954 9197 Website: www.creativedreams.net

Aphrozone (Malaysia) Sdn Bhd Tel: 04-646 9028 Fax: 04-646 7153 Website: www.aphrozonemy.com

D

Asia Herbal Biotech Sdn Bhd Tel: 03-5622 2600 Fax: 03-5622 2900 Website: www.ahb2u.com Atomy Malaysia Sdn Bhd Tel: 03-2718 8989 Fax: 03-2718 8988 Website: www.atomy.com/my Avon Cosmetics (M) Sdn Bhd Tel: 03-5033 2800 Fax: 03-5033 2900 Website: www.myavon.com

B

BE International Marketing Sdn Bhd Tel: 03-8605 8500 Fax: 03-8605 8501 Website: www.beintl.com Best World Lifestyle Sdn Bhd Tel: 03-9057 1133 Fax: 03-9057 2158 Website: my.bwlgroup.com/english Biing Han Enterprise Sdn Bhd Tel: 03-2144 1081 Fax: 03-2144 7443 Website: www.binghan.com Blondal Sales & Service Sdn Bhd Tel: 03-5569 1888 Fax: 03-5569 1558 Website: www.blondal.net Brilliant Point Sdn Bhd Tel: 03-4142 0411 Fax: 03-4142 0415 Website: www.bpi2u.com.my

C

Cadware Pioneer Sdn Bhd Tel: 03-9171 6952 Fax: 03-9171 6951 Website: www.cw-pioneer.com.my

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CenGreen Global Sdn Bhd Tel: 03-90 56 2005 Fax: 03-9056 2516 Website: www.cengreen.com

/ Direct Seller Malaysia / Issue 1 / 2020

Cuckoo International (Mal) Sdn Bhd Tel: 1800-88-8181 Fax: 03-9078 2538 Website: www.cuckoo.com.my

Decho Bio International Sdn Bhd Tel: 03-8066 2788 Fax: 03-8066 3132 Website: www.dechobio.com Diamond Interest Sdn Bhd Tel: 04-397 4675 Fax: 04-397 9230 Website: www.di2u.com.my Doterra Malaysia Sdn Bhd Tel: 03-2633 7888 Website: www.doterra.com DXN Marketing Sdn Bhd Tel: 03-7725 3388 Fax: 03-7725 1188 Website: www.dxn2u.com

E

Edmark (Malaysia) Sdn Bhd Tel: 03-8070 2488 Fax: 03-8075 3366 Website: www.edmarker.com Edutex Trading Sdn Bhd Tel: 05-313 9988 Fax: 05-312 8068 Website: www.swisspro.com.my Elken Sdn Bhd Tel: 03-7985 8888 Fax: 03-7785 9284 Website: www.elken.com Elowater Malaysia Sdn Bhd Tel: 03-2856 8590 Website: my.elowatershop.com/ Enagic (Malaysia) Sdn Bhd Tel: 03-2282 2332 Fax: 03-2282 2335 Website: www.enagic-my.com

Excellent Household Resources Malaysia Sdn Bhd Tel: 03-5892 1962 Website: www.eharta365.com Extend My Network Sdn Bhd Tel: 07-5588 276 Fax: 07-5588 278 Website: www.extendintl.com

F

Fitline (M) Sdn Bhd Tel: 03-8081 6680 Fax: 03-8081 6102 Website: www.pm-international.com Flantech Asia Sdn Bhd Tel: 04-537 2200 Fax: 04-537 0099 Website: www.flantechasia.com Forever Living Products (M) Sdn Bhd Tel: 03-9282 0033 Fax: 03-9283 5055 Website: www.forever.net.my Forlife Research Sdn Bhd Tel: 03-7629 6800 Fax: 03-7629 6888 Website: www.4life.com

G

Home Direct Shopping Sdn Bhd Tel: 03-2282 1233 Fax: 03-2282 1833 Website: www.bestproductsmy.com

I

I-Linkage Sdn Bhd Tel: 03-2713 1288 Fax: 03-2713 1822 Website: www.nutric.com Immeri Sdn Bhd Tel: 03-7972 8033 Fax: 03-7972 7233 Website: www.immeri.my Infinitus International (Malaysia) Sdn Bhd Tel: 03-8079 1828 Fax: 03-8079 1829 Website: www.infinitus.my

J

Jeunesse Global Sdn Bhd Tel: 03-7960 6005 Fax: 03-7960 9005 Website: www.jeunessemy.com Just Essentials Sdn Bhd Tel: 03-6143 9008 Website: www.justswiss.co

GoodARCH Technology Sdn Bhd Tel: 03-5525 8189 Fax: 03-5525 8789 Website: my.goodarch2u.com

K

Grolier (Malaysia) Sdn Bhd Tel: 03-2688 1688 Fax: 03-2070 5708 Website: www.grolier-asia.com

Kyani (M) Sdn Bhd Tel: 03-5022 0833 Fax: 03-5022 0836 Website: www.kyani.net

Gano Excel Enterprise Sdn Bhd Tel: 04-734 6828 Fax: 04-732 3828 Website: www.ganoexcel.com.my Greaten Bridge Sdn Bhd Tel: 03-8656 6399 Website: www.greatenbridge.com

H

K-Link International Sdn Bhd Tel: 03-7948 2333 Fax: 03-7948 2338 Website: www.k-link.com

KZ1 Global Sdn Bhd Tel: 03-7960 1877 Fax: 03-7960 2877 Website: teamkz1.my

Healthy Futures Sdn Bhd Tel: 03-7661 0812 Fax: 03-76610820 Website: www.saladmaster.com

L

Healthy Homes Marketing (M) Sdn Bhd Tel: 03-9221 2828 Fax: 03-9221 1868 Website: www.rainbowsystem.com

LG Electronics (M) Sdn Bhd Tel: 03-7962 7777 Fax: 03-7962 7700 Website: www.lg.com/my

HDI Network (M) Sdn Bhd Tel: 03-5633 0906 Fax: 03-5633 3129 Website: www.hdiholdings.com

Healthy Way (Malaysia) Sdn Bhd Tel: 03-8656 9999 Fax: 03-8656 1232 Website: www.healthyway2u.com Herbalife Products Malaysia Sdn Bhd Tel: 03-2687 6333 Fax: 03-2687 6222 Website: www.herbalife.com

LeRoy International Sdn Bjd Tel: 03-8925 9999 Fax: 03-8922 2280 Website: www.leroyinter.com

Longrich Bioscience (M) Bhd Tel: 03-2289 0888 Fax: 03-2289 0828 Website: www.longrich.com Luxor Network Sdn Bhd Tel: 03-7681 2233 Fax: 03-7681 2266 Website: www.luxornetwork.com.my

M

Manamana International Sdn Bhd Tel: 03-7788 7791 Fax: 03-7788 7792 Website: www.manamanamall.com Market Malaysia Shop Sdn Bhd Tel: 03-2289 3388 Fax: 03-2289 3300 Website: www.mys.shop.com Mary Kay (Malaysia) Sdn Bhd Tel: 03-7711 7555 Fax: 03-7711 7556 Website: www.marykay.com.my Max Health & Living Worldwide (Malaysia) Sdn Bhd Tel: 03-7494 1270 Fax: 03-7931 5018 Website: www.max.com/my Max Pine International Holdings Sdn Bhd Tel: 04-506 0185 Fax: 04-506 0187 Website: www.maxpineinternational.com MOI Worldwide Sdn Bhd Tel: 03-9221 0586 Fax: 03- 9221 0586 (No website) Morinda (Malaysia) Sdn Bhd Tel: 03-8655 1198 Fax: 03-8655 1098 Website: www.morinda.com MPI Multi-Pure International Sdn Bhd Tel: 603-2242 4188 Fax: 03-2242 4886 Website: www.mpibodyline.com

N

Natural Health Farm Marketing (M) Sdn Bhd Tel: 03-5569 3721 Fax: 03-5569 0139 Website: www.nhf.com.my Nefful (Malaysia) Sdn Bhd Tel: 03-2031 1177 Fax: 03-2031 1155 Website: www.nefful.com.my NHTC Wellness Products Malaysia Sdn Bhd Tel: 03-8605 0072 Website: malaysia-en.nhtglobal.com Norwex Malaysia Sdn Bhd Tel: 03-5031 2688 Website: norwex.my Nu Skin (Malaysia) Sdn Bhd Tel: 03-2170 7700 Fax: 03-2170 7799 Website: www.nuskin.com.my N.Z. New Image Sdn Bhd Tel: 03-7940 3688 Fax: 03-7940 3600 Website: www.newimage.asia/my

O

ODC International (M) Sdn Bhd Tel: 03-7932 3338 Website: www.e-odc.com

Ola Beleza Sdn Bhd Tel: 03-5632 4313 Website: www.natura.com/my

Sami Direct Sdn Bhd Tel: 03-7494 3843 Fax: 03-7494 3869 Website: www.samidirect.com.my

Omni AAA (M) Sdn Bhd Tel: 03-6207 9811 Fax: 03-6207 9812 Website: www.omniaaa.com

Shaklee Products (Malaysia) Sdn Bhd Tel: 03-5622 3188 Fax: 03-5622 3199 Website: www.shaklee.com.my

OMX Nutrition Sdn Bhd Tel: 03-8025 9103 Fax: 03-8025 9110 Website: www.omx.com.my

Shuang Hor Enterprise (M) Sdn Bhd Tel: 03-6275 8818 Fax: 03-6276 6822 Website: www.shuanghor.com.my

One Green Solution Sdn Bhd Tel: 03-2780 3890 Website: www.sollife.com.my

Siang Hin Network Sdn Bhd Tel: 03-7960 7322 Fax: 03-7960 7323 Website: www.grandsun.com.tw

Optimo International Sdn Bhd Tel: 03-5192 1989 Fax: 03-5192 1978 Website: www.optimo.my

Singer (Malaysia) Sdn Bhd Tel: 03-7985 9090 Fax: 603-7985 9199 Website: www.singer.com.my

P

Perfect Pentagon Sdn Bhd Tel: 03-7620 3800 Fax: 03-7620 8282 Website: www.perfect100.com.my PHHP Marketing (M) Sdn Bhd Tel: 07-861 9889 Fax: 07-861 5023 Website: www.phhp.com.my Pure N Fresh Marketing Sdn Bhd Tel: 04-730 1729 Website: www.purenfresh.com.my

Q R

QNet (M) Sdn Bhd Tel: 03-7967 9888 Fax: 03-7957 5142 Website: www.qnet.net.my

Stemtech Malaysia Sdn Bhd Tel: 03-7980 2007 Fax: 03-7980 9700 Website: www.stemtech.com Stolle (M) Sdn Bhd Tel: 03-7498 0606 Website: www.stolle.com.my Sunrider International (Malaysia) Sdn Bhd Tel: 03-4253 3266 Fax: 03-4251 4986 Website: www.sunrider.com Superlife World Sdn Bhd Tel: 03-9202 6566 Website: www.superlifeworld.com Swisderm International (M) Sdn Bhd Tel: 03-5879 8544 Fax: 03-5879 8544 Website: www.swisderm.com Synergy Worldwide Marketing Sdn Bhd Tel: 03-7710 8228 Fax: 03-7710 9229 Website: www.synergyworldwide.com

T

Tasly (Malaysia) Sdn Bhd Tel: 03-9222 3811 Fax: 03-9222 6811 Website: www.tasly.com.my Thanks Ai Sales & Marketing Sdn Bhd Tel: 03-7932 1613 Fax: 03-7932 1619 Website: www.thanksai.my Theta Mobile Sdn Bhd Tel: 03-7839 3439 Fax: 03-7666 6995 Website: www.theta-edge.com

Reliv International Sdn Bhd Tel: 03-6038 7388 Website: www.relivasiapacific.com.my

Tien Health Development Sdn Bhd Tel: 03-9284 7999 Fax: 03-9284 8999 Website: www.tiens.com.my

Revell Sdn Bhd Tel: 03-7931 9601 Fax: 03-7931 9609 Website: www.revelllife.com

Totalife (M) Sdn Bhd Tel: 03-6144 0528 Website: www.totalifeglobal.com

S

Sachaway Sdn Bhd Tel: 07-558 2188 Website: www.inchaway.my Sahajidah Hai-O Marketing Sdn Bhd Tel: 03-3348 8588 Fax: 03-3348 8133 Website: www.sahajidahhai-o.com.my

Total Reach Marketing Sdn Bhd Tel: 03-7877 6500 Fax: 03-7874 4294 Website: www.newlife.my Tri Wonder International Sdn Bhd Tel: 03-6206 1630 True Mix Sdn Bhd Tel: 03-7804 9326 Fax: 03-7806 2463 Website: www.thermomix.com.my Tupperware Brands Malaysia Sdn Bhd Tel: 03-5636 5500 Fax: 03-5631 1832 Website: www.tupperwarebrands.com.my

U

UGS Network Service (M) Sdn Bhd Tel: 03-5879 1586 Fax: 03-5871 9587 Website: www.ugsnetwork.com.my UHS Essential Heatlh (Malaysia) Sdn Bhd Tel: 03-2246 0800 Fax: 03-2246 0901 Website: www.usana.com Unicity Marketing Sdn Bhd Tel: 03-7968 9911 Fax: 03-7968 0888 Website: www.unicity.com Unilever Malaysia Aviance Sdn Bhd Tel: 03-7951 9888 Fax: 03-7960 3660 Website: www.unilevernetwork.com.my

V W

VIVA Life Science Sdn Bhd Tel: 03-7859 8248 Fax: 03-7859 8249 Website: www.vivalife.com.my

Wealthy Pentagon Sdn Bhd Tel: 03-2280 0068 Fax: 03-2280 0568 Website: www.easecoxgroup.com Worldwellness Network Sdn Bhd Tel: 03-7788 7791 Fax: 03-7781 0949 Website: www.worldwellness.com.my

Y

YMR International Marketing Sdn Bhd Tel: 09-844 2775 Fax: 09-848 4775 Website: www.ymr2u.net Young Living (Malaysia) Sdn Bhd Tel: 03-2280 1000 Fax: 03-2280 1002 Website: www.youngliving.com

Z

Zhulian Marketing (M) Sdn Bhd Tel: 04-616 2020 Fax: 04-641 3020 Website: www.zhulian.com.my

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