KUALA LUMPUR: Malaysia's direct selling market could experience significant growth as more graduates enter the workforce and current employees seek additional income due to rising living costs.
According to the World Federation of Direct Selling Associations' (WFDSA) 2022 retail sales report, Malaysia ranked sixth among the 24 global billion-dollar markets recognised by WFDSA, with retail sales of US$8.63 billion, marking a 5.6 per cent increase from 2021.
The Asia Pacific region recorded estimated retail sales of US$71.51 billion, an increase of 0.2 per cent from the previous year.
QNet, the top direct selling company in Malaysia with sales of US$520 million in 2023, expects strong business growth and is currently growing both its network and product line.
Its chief marketing officer Trevor Kuna said that the Malaysian direct selling market saw a 20 per cent upward trend from 2016 to 2019, with significant growth during the pandemic period.
Sales in the industry jumped by 30 to 40 per cent during the pandemic, a trend observed worldwide, he told Business Times after unveiling new wellness products, namely Amezcua e-Guard X, HomePure Nova, HomePure Zayn, and EDG3 Plus.
"Online sales surged during the pandemic. The industry saw a major spike in 2021, followed by a normalisation in 2022 and 2023. With the economy in lockdown and many people losing their jobs, direct selling became a popular option for supplementing lost income. This trend was driven by the availability of exclusive products and the flexibility direct selling offers," he said.
Kuna also noted that the industry is expected to continue growing at a compounded annual growth rate of seven to eight per cent due to a tight job market.
"With many graduates entering the workforce and people seeking financial independence, direct selling offers an attractive option with its flexible system and quality products. The industry's growth is fueled by the desire for income generation and time freedom," he said.
QNet, which is currently among the top 30 players in the global direct selling industry aims to hit the US$1 billion revenue mark by 2028.
"We celebrated our 25th anniversary last year and we're now focused on the next 25 years. Our goal is to enter the top 10 of the industry's billion-dollar club within the next three to five years," he said.
"Our main product categories include home and living, and we are unique in offering Swiss-made watches. Our mission is to improve the lives of customers through wellness and innovative solutions.