Country Focus
July 2010
Letter from the Direct Selling Association
THE Direct Selling Association here is just starting to become established as a division of the Chamber of Commerce. This is perhaps a unique situation and we are very happy to be part of this organisation which offers many advantages.
We are very happy to have their support, their legal advice and to share their premises for meetings. We work together to support business interests of the wider retail environment, a positive situation after a period in the early 90s when there was some suspicion and misunderstanding about the direct selling industry.
As multi-nationals began to appear after independence the image of the industry changed and today people are open to the idea and credibility is good. We are accepted as part of the retail environment offering a different channel.
The start of last year saw a big step forward with a new trade law that has expanded the number of categories that can now be sold through the direct selling channel. This is already attracting more companies to consider setting up a business here as it has removed some of the obstacles to bringing new products to market, such as food supplements.
As a member of the European Union (EU), Slovenia is attractive for many reasons and because we are a small market it is easier for companies to make a big impact quickly. We know of several who are actively looking and although they have yet to make a decision I’m sure there will be news by the end of this year. With just 30,000 direct sellers there is much potential here. In comparison to other newcomers to the EU, Slovenia is a relatively wealthy country and people are willing to spend on good quality products. Confidence is slowly coming back after a difficult couple of years, although we are not expecting major growth this year. While Slovenia has suffered less than some other countries, the global economic crisis has definitely had an impact. Unemployment increased last year and GDP fell sharply but we see signs that things are slowly improving.
Fair prices, personal service and generous guarantees are good for the consumer and this year the Association is planning to organise fairs and small exhibits in selected shopping centres to display products and highlight the earnings opportunity.
Our biggest burden is the high taxation and bureaucracy that applies to all new businesses, even those small entrepreneurs who make up the majority of our direct sellers. For every €100 earned about 50 per cent goes in taxes and statutory payments which is a disincentive for those who only wish to spend a few hours a week to earn a little extra money. It is only a small minority of people who choose to devote themselves to a full-time business.
We believe strongly these entrepreneurs are the engine of the economy and we have to show the government that if taxes were lower they would actually collect more revenue because more people would be prepared to run their own small business from home.
Our aim is to achieve a situation such as that in Italy and some other European countries where the earnings limit has been raised to a significant level to accommodate the self-employed. With the support of the Chamber of Commerce we are trying to open a dialogue with the government using these examples to demonstrate the benefits.
www.dsa.si
