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Higher recruitment and anticipated reforms of employment and consumer law are creating positive conditions for the industry in Belgium. While the sector grew by 3 per cent last year it is forecast to rise more steeply over the next five years as reforms begin to make an impact.

Fact File: Belgium Population: 10.5 million Capital: Brussels Geography: A small country bordered by the Netherlands, Germany, the Grand Duchy of Luxembourg and France. Its location has made it an economic and administrative hub, home to the European Commission. Number of direct sellers: 20,000 (APVD members) Annual sales: €169 million (APVD members)

Industry experts believe the heavy burden of legal, tax and other administrative requirements have held back growth, in many cases acting as a disincentive to those who wish to take on a small part-time role.

However, thanks to the combined efforts of the Association of Professional Direct Sellers (APVD) and retail federation FEDIS, conditions are becoming more favourable (Letter from DSA, Page 18). According to research organisation Euromonitor International, a number of specific changes seem likely to create a more optimistic picture. Among them, the relaxation of fiscal rules, which mean individual direct sellers are no longer required to have a VAT number. The direct selling organisation (DSO) now has the power to manage this tax liability on behalf of their independent distributors.

Henk van Bremen, General Manager of Amway Belgium, said having to manage their VAT had until recently put off potential distributors. “Now the distributor can choose to do it themselves or pass over the responsibility to the company, a situation which is unique to the direct selling industry and has made recruitment a little bit easier,” he explained.

Still under review is the existing ban on payment of goods prior to the end of the seven-day ‘cooling off’ period. Mainstream players are hopeful the government will agree to their request and authorise payment or at least a deposit on purchases to reduce the risk of bad debt.

These and other issues are highlighted by the local direct selling association (APVD), which supplied much of the data for the Euromonitor country report published in January. Clothing and footwear are the top selling categories, with jewellery, lingerie and cosmetics also popular.

Attracted by the changing conditions, newcomers to the market seem likely to include multi-national manufacturers and brands that until now have focused on store-based retailing. These include skincare company Beiersdorf and Yakult, which already distributes door to door in Japan.

The most popular and successful model is the house party or ‘workshop’ and growing unemployment due to the recession continues to fuel recruitment. “The strongest performers are likely to be those who capitalise on party plan with emphasis on education and conviviality,” says the report. “Surveys show consumers seek not only to buy a product but to enjoy the sales process and experience while also wishing to learn something.”

The industry is well established in Belgium over the past 40 years and the future looks bright despite the rise of internet sales and the decline of the door-to-door sales method. Home parties on the other hand are growing in popularity, with an increase of 10 per cent in 2008. They represent 77 per cent of APVD members’ sales value and consumers report major satisfaction (76 per cent) for purchases made in this environment. The predominantly female audience ‘enjoys the ambience of a party with friends’ and the setting and mood means they are less price sensitive and more product focused. The average home party sale is steadily rising.

While opinions differ on the potential for growth over the next five years, industry sources are optimistic, due to the improving legal landscape combined with improved credibility of the channel, and the continued economic conditions leading more Belgians to seek ways of supplementing their income.