Top Desk
May 2011
Europe’s not-so Common Market!
Doug Fairchild, 64, is Vice President of Sales and Marketing for GNLD International Northern Europe, and is due to retire later this year after 35 years with the company, which provides home care, health care, personal and skin care ranges, plus a weight loss programme. Here he reflects on the changes he’s seen within the industry and highlights some of the challenges of the present day.
Even though we are part of a European Union, which we call the ‘Common Market’, within our industry we often find the EU isn’t really very common at all. This is because many countries have laws and regulations which differ in many ways from those of the EU.
For example, quite often you find some national entities have a different viewpoint when it comes to the EU rules, which cover product registration, formulations and their ingredients. For instance, we had a garlic product approved in Finland; however, we couldn’t distribute it in Sweden because local regulations wouldn’t allow certain ingredients. It took some years before regulations were revised by the Swedish authorities.
This inconsistency happens on a fairly regular basis between markets. We may get EU directives saying something is acceptable but then when we go to register the product in a particular country we find they have a different view altogether. I would like to see these laws and regulations unified across Europe.
Another issue facing our industry today is that our way of doing business is looked upon with scepticism in some of the former socialist countries. We like to give people freedom of choice in being able to start their own businesses.
However, in some of these countries people who want to become Distributors have to go through copious form filling procedures to register as independent businesses, which can be quite a challenge.
These are markets where people have never had the freedom to run their own business, and the bureaucratic procedures often frighten many of them away. However, things are improving, and over the years FEDSA have made great strides in working with national regulators on these issues.
It is frustrating at times as to how some national regulators view or misunderstand our form of business. Because we are not looked upon as ‘normal business’ some regulators often find it difficult to see how our Distributors can operate as a legitimate enterprise.
FEDSA recently produced statistics that 11 million people in Europe are now involved in direct selling. Most of these are part-time; even so, that is one massive workforce. I don’t think governments really appreciate the size of our industry, or how we provide an opportunity for millions of people.
However, on the whole, I think there is a much greater awareness of our industry today than 20 or 30 years ago, when the only media articles you saw were generally quite negative. But over the past decade I have seen some very positive articles about companies within our industry.
I believe direct selling regulations play an important role in maintaining ethical standards. One of our youngest European markets, for example, is Lithuania – a country that has had 50 years of socialism. When we opened there many people wanted to be Distributors but they were sceptical about whether we were legitimate. The fact that we were members of the DSA and FEDSA helped us to break down barriers and had a big influence on our acceptance, and now Lithuania is one of our fastest growing markets.
What sets our industry apart from most other industries is that it provides people with opportunities to improve their lifestyle and to be successful, regardless of their background, their education and their social standing. We don’t differentiate between a person who is an academic and a person who is a street cleaner. Some rise to the top and some don’t, but in our industry the person who is the street cleaner has the same opportunities as the person who is well educated.
I think one of the most important aspects of a direct selling company is having excellent products. You also require a fair and rewarding business plan, a motivating recognition system that rewards those who do a good job, and good training programmes which are important to help individuals to develop. As a company, you should also have a solid set of core values.
When I came into our business 35 years ago our Founder, Jerry Brassfield, preached the same core values as we preach today. Those core values, ‘honesty and integrity in everything we do, people are No 1, products that are excellent, equal opportunity for all and long-range vision’ are equally as important as the excellent products, the business plan, recognition system and training programmes.
By being in the people business, I believe we have a social responsibility to put something back into the community. Over the years GNLD has donated to various charities and supported local causes in each of our regions. Recently we decided it would be more effective if we globally supported one charity. With this in mind, earlier this year we launched a programme to support the Kids of Kilimanjaro.
Through this charity we are now providing a daily midday meal for 30,000 schoolchildren in Tanzania, which the local municipalities could not afford. We are very proud of the contribution we are making to these children’s lives.
I have seen many changes since I started as a Distributor in 1976. However, the major improvement I have noticed is the business tools Distributors now have at their disposal. When I started there were no mobile phones, PowerPoint presentations, DVDs, internet, Facebook and other forms of social networking as we have today. We simply had pieces of A4 paper stapled together, which were our business tools. Today, the tools the Distributors have available in all our markets are quite incredible.
I recently saw a survey in the United States stating that only 7 per cent of contact within the direct selling industry is made on the internet, yet 73 per cent is one-on-one. This really did surprise me, as it indicates that, despite the changes the internet has brought, we are still very much about personal contact. A phrase I often use is that, ‘although we live in a high-tech world we are still very much a high-touch business.’
If I could offer one piece of advice to anyone in this business it would be to never forget to make people feel important. Many people go through life working for the same company yet never receive any recognition or pat on the back. We like to make people feel important when they do a good job and, in doing this simple task, you will be rewarded handsomely in many ways in the long- term.
I definitely believe the future of our industry is incredibly bright. So bright, in fact, that with people today leading such hectic lifestyles and living in a high pressure society, we offer them that perfect balance of running their own independent business and spending quality time with their families.
As I look forward to my retirement later this year I have many great memories but I think the greatest memories are of the people I have met and the fun times we have had. My wife and I have lived all over the world and have made friends with so many people from all walks of life. These are the things we cherish the most from this business.
