Direct Selling At The Base Of The Pyramid

965 words - 4 pages

Direct Selling at the Base of the Pyramid

Direct Selling at the Base of the Pyramid
The article “Emerging Markets: Direct Selling at the Base of the Pyramid” by Jessica Chelekis and Susan M. Mudambi argues that direct sales companies grow their markets and profits by getting possible buyers and sellers at the base of the pyramid. The article explains how around 400 women in the lower Amazon engage in direct sales networks by selling Avon and other products in their countries. It also explains how direct selling creates local and global values in beauty, how it empowers women to become micro-entrepreneurs of multinational enterprises, and how this process also benefits the income and ...view middle of the document...

Direct selling in the lower Amazon helps to stimulate the economy, it gives women the opportunity to have a job, and it also increases the connectivity between the countries around the world. Direct sale representatives in Ponta de Pedras, a municipality that depends on the agriculture, have an income thanks to their sales in their community, and with those earnings they are able to provide clothes for their children or some beauty articles for themselves. This process stimulates the economy in that country and it also encourages women to be more productive and have more sales in order to be able to provide more things for their families or themselves. Another advantage of direct selling is that women in that developing country create a system which customers interpret the global definition of beauty and they apply it to their local values. This action increases globalization by making the population of Ponta de Pedras capable of connecting with other countries of the world just by purchasing products from Avon, Natura or Hermes.
One of the disadvantages of direct selling is that according to the authors around one billion customers in the bottom of the pyramid spend around one third of their income on non-essential items, such as the beauty products or clothes provided by direct selling companies. Because customers in the lower Amazon also spend a significant amount of their income in such items, it might seem like direct selling companies are being unethical by targeting this low- income customers. Also, the sellers might face some situations when the buyers want some items but they are not able to pay for those instantly. In the case of Ponta de Pedras, direct sale representatives business depends on the agricultural season, therefore...

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