Country Focus
September 2009
Clear guidelines encourage more to sign up
Fact FilePopulation: 58 million Geography: Italy is a founder member of the European Capital: Rome |
Judith Wojtowicz finds out more about direct selling in Italy where the industry has benefited from new legislation that came into force in 2005.
DIRECT selling in Italy has been revitalised in recent years, partly due to government legislation that came into force in 2005 and described as ‘an important milestone’ for the industry.
The Regulations Governing Direct Selling and Customer Protection from Pyramid Schemes clearly define direct selling from the consumer’s perspective with an explicit ban on pyramid selling.
In addition, the regulations resolved various issues around the role of the independent direct seller. Until then conditions had not been encouraging to those wishing to become self-employed. The new rules reduced the
bureaucratic burden and clarified the position in relation to VAT, tax and welfare benefits.
“This new legislation was a very important result for direct selling, especially as the regulations reflected almost exactly the principles laid down in our own code of conduct,” said Luca Pozzoli, president of the Direct Selling Association of Italy (Associazione Vendite Dirette Servizio Consumatori - AVEDISCO). “Having this clarity encouraged more people to sign up and helped enhance the overall image of the industry.” Since then the number of direct sellers has been increasing by 10 per cent year on year. (Letter from DSA)
Direct selling organisations in Italy represent a wide range of products and services, from local companies to large multinationals whose global reputation has also helped raise the profile of the industry. The largest sector is household goods followed by cosmetics and personal care.
The growth of the industry across Europe combined with the high standards set down by AVEDISCO has enhanced the status of the direct seller which today is seen as a professional career option with good earnings potential. One of many successful local companies is Wool Service — renowned for its exclusive bed mattress design — which chose this distribution channel way back in 1988 to get close to the customer. Seen as an ideal way to demonstrate the advantages of their unique products, the company remains confident of its relevance in today’s market place.
The company produces a mattress that keeps the body in the correct position and creates the right climate conditions in the bed to reduce static.
“Our biggest challenge is to continue to produce high quality products at the right price, and above all to offer real value to the customer,” said managing director Doroteo Fornasier.
“It is only in this way that we can maintain consumer confidence in direct selling and retain the trust consumers place in us every day.
“Direct selling offers a great opportunity to any company that works with passion and honesty and with products that have widespread appeal to every home. The biggest challenge for newcomers is to create a company that is easy
to distinguish from others. Italy offers enormous potential for those who follow the methodology recommended by AVEDISCO and can engage and involve their direct sellers through motivation and exciting winners’ programmes.”
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