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And its showing the way too. The US-based wellness and personal care products firm is
part of an army of direct sellers in India that has woken up to the need for complete
brand-building exercise through mass media.
Oriflame, Tupperware and Modicare have all started spending more on advertising and
even tying up with retailers as India’s Rs 3,300-crore direct selling industry is bracing up
for increased competition from traditional players who have added direct selling and
e-tailing to widen their reach to rural and semi-urban areas.
Other direct sellers such as international cosmetics brand Jafra and wellness brand
New-skin too are looking at advertising their products.
“We have realised the importance of a complete brand-building exercise,” says Asha
Gupta, MD of Tupperware India. The company also tied up with ICICI Bank last month to
reach out to the latter’s corporate clients and co-branded Bollywood movies Billu Barber
and Namaste London as part of its 360-degree marketing exercise.
Amway has seen its spend on advertisement rise from about Rs 4 crore in 2005 to close
to Rs 15 crore this year. “Amway does not traditionally advertise but we realised that
India was a different market and that we would need to supplement sales force’s efforts
with brand campaigns in mainstream media,” says Bill Pinckney, CEO and MD, Amway
India, a Rs 1,128-crore enterprise.
So long, Amway’s campaigns focused on building the corporate brand. Next year, the
maker of largest vitamins dietary supplement brand Nutrilite, Artistry skincare products
and Persona premium soaps, plans to start product advertisement.
The company is also encouraging its 5.5-lakh distributors to tie up with salons and
beauty parlours to sell its range of personal care products. Cosmetics brand Mary Kay
has been advertising ever since its entry into the country in 2007. “We utilise outdoor,
regional print media and radio advertising to complement the sales forces’ efforts,” says
Renuka Dudeja, senior manager, communications and consultant marketing
programmes, at Mary Kay India.
With companies taking the mass media route, India’s 15-member direct selling industry is
expected to retain if not accelerate last year’s growth rate of 17%. Way to go.
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