Country Focus
January 2010
Direct selling helping to keep the dream alive!
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The recession has hit Spain harder than almost any other country in Europe, with unemployment running at around 20 per cent. For the direct selling industry this is both an opportunity and a challenge, as Judith Wojtowicz discovers.
IN recent years the Spanish economy has depended on two things, construction and tourism. The collapse of the building industry which had fuelled much of the economic growth in the fi rst half of the decade has had a devastating impact made worse by the global financial downturn.
“At its peak, more apartments were being built here each year than in the UK, France and Germany combined,” said Juan Turro, Secretary-General of the Direct Selling Association. “It was clear this could not continue.”
With less money to spend, families across Europe have not been able to travel in the same way as before and so tourism has also been seriously affected.
Unemployment is running at around 20 per cent, rising from a low of eight per cent in 2007. While the government is focused on reinventing ways to stimulate growth, such as investing in new technologies for sustainable development, the direct selling industry has risen to the challenge.
According to some observers, the psychological impact of the crisis on the population has been immense with television, radio and newspapers highlighting bad news on a daily basis. “In the early part of last year it was as if the country came to a complete stop, paralysed almost with no way out,” said Jean-David Schwartz, General Manager of Stanhome World Spain. “By May or June however people started to pick themselves up, accept they may have lost one job and are now very open to new options.”
Not surprisingly, industry executives are agreed that at times like this the industry offers a massive opportunity for people to set up their own business at home and support their family with little or no initial outlay.
One industry source, who reported an increase in recruitment of 135 per cent over 2008, said inquiries were coming not only from the local population but from many expat foreigners who are familiar with direct selling from home and ‘trying to keep alive their dream’ of staying in Spain. Others have no experience in the industry but are looking for an extra income and the skills training that is available.
Spain has one of the biggest differences between male and female salaries in western Europe and the lowest number of women reaching management and executive career positions. This makes the direct selling sector particularly attractive especially in current conditions.
Juan continues, “The welfare system is good here with benefi ts linked to percentage of salary and paid for up to two-and-half years, for local and foreign workers - everyone is treated the same. This year will be signifi cant as for many people their benefi ts will come to an end. The government is also reviewing the welfare system so in future there may be changes.
“Direct selling is a way to get out of this negative situation, particularly for women who more than ever are seeking ways to support their family because their husband is out of work.”
