DIRECT-SELLING INDUSTRY GROWS

The sector cannot hold on to workers for long

WHILE other industries are struggling due to the bad economic climate, the directselling industry is growing.

At the presentation of its annual results yesterday, the Direct Selling Association (DSA) said sales in South Africa increased by 6.6% to R7.6-billion last year from R7.1-billion in 2011.

However, the number of businesses that are registered with the DSA decreased marginally to 36 in 2012 from 39 in 2011.

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location.

DSA chairman Richard Clarke said sales in other African countries grew by 75.6% to R1.1-billion from R657-million. “This makes the average growth rate of all African countries over the past three years 10.3%.”

The increase in revenue was also characterised by the sector being able to up the number of its employees by 10.4% to 424 000 in 2012 from 384 000 in 2011.

However, the industry appears to be unable to hold on to its workers for long, and has an extremely high staff turnover. About 960 000 left the employment while 940 000 joined the industry.

“The industry employs a large number of female employees, ” Clarke said.

Clarke said the industry’s black employees grew to 80%, whites declined to 15%, while Asians and coloureds remained constant at 3% and 2% respectively.