Industry News
May 2010
FEDSA briefing
Newly appointed FEDSA Chairman, Philippe Jacquelinet talks to Direct Selling News Europe.
Describe the first few weeks of your term as FEDSA Chairman.
FEDSA underwent profound structural changes in 2009 that are now being implemented. Beginning my term as Chairman at this time represents an exciting challenge and at the same time a great honour. I myself am a CEO of a direct selling company I founded some 15 years ago with my wife, this makes me fully aware of this industry’s concerns and well prepared to represent it.
Where do you see the direct selling industry in Europe today?
Direct selling is Europe’s largest provider of independent earning opportunities. It is a sector that creates jobs, a pool for entrepreneurship. Requiring a modest investment that rarely exceeds €100, this channel of distribution appeals to men and women of all ages and all social groups without any prejudice. In today’s difficult economical situation, it is even more attractive as a means to supplement a family income or simply as an alternative to a job that is either lost or cannot be found. For consumers, direct selling offers many advantages. To me, the most important one, is the face-to-face contact between the consumer and the seller; in a world where technology increasingly dominates all types of relationships, direct selling is today a unique way to bring people together.
Where do you see direct selling in 10 years time?
I am confident that our industry, which has a great potential, will continue to grow. Direct selling has demonstrated its dynamism and its capacity to adapt in a changing economical environment. Our industry which creates consumer demands through explanation, demonstration and referral is a niche for innovative products. The development of e-commerce is not such a challenge for our salesforce and our companies. On the contrary, a growing proportion of today’s direct sellers have proactively taken full advantage of the internet to strengthen their personal relationships with their customers. Companies are using the internet to provide the direct sellers, at any time of the day, with all the information they need to place an order, check order progress or the stock available. There are over 1,000 direct selling companies in Europe reporting sales of €20 billion achieved by over 12 million direct sellers.
What are the current challenges of the direct selling industry in Europe?
Despite the fact that direct selling is resilient to recession, one must not underestimate the negative impact of the global economic crisis on our companies. On the legislative side, our industry will soon be ruled by a new EU Directive on consumer rights that is currently under discussion in the European Parliament. We make sure in FEDSA that all political stakeholders involved in the legislative process understand our concerns and hear our demand for a legislation offering a high level of consumer protection, while allowing our companies to flourish.
Besides FEDSA there is another European direct selling umbrella association, DSE. What are the chances for a reunion of the two organisations?
The industry is indeed represented by two associations in Brussels. They differ in the fact that FEDSA is an association of associations while DSE is an association of companies. A unification of FEDSA and DSE is not on the agenda but I believe that the two organisations have a lot in common and can live together; opportunities for a constructive dialogue between them exist and shall be encouraged on both sides.
Currently none of the two German direct selling associations is a member of FEDSA. Do you have any intentions to change that and if so, are you tending more towards the BDD or the UVDV as a FEDSA member?
Unity is one of the subjects, with ethics, on which I will focus my actions as Chairman of FEDSA. It goes without saying that this approach includes Germany, the largest European market for direct selling. We have an ongoing dialogue with BDD and with UVDV and pursue a policy of frank openness with both of them. Our doors are open.
What are your goals as FEDSA Chairman in general?
My priorities lie in two areas: Ethics and Unity. Ethical behaviour and a strong code of conduct are crucial factors for the development and the credibility of our industry. The newly created Ethics Committee in FEDSA will soon designate a European Code Administrator, providing the European direct selling industry with a key self-regulation tool. Unity is essential for the achievement of our objective, which is to ensure a favourable legislative environment allowing our businesses to develop and grow in the 27 EU member states.
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