Reviews on the Best Direct Selling Companies in the Philippines

[Updated: 02-06-2017]
It is important to have an informed decision if you are planning to go into direct selling business. The following is not based on some well-researched, factual and evidence-loaded criteria; rather it is just an observation based on our actual engagement with the following direct selling companies.

Natasha

For over twenty years, Natasha seems to lead in the apparel/shoes category in the direct selling industry in the Philippines. Its growth is phenomenal to the surprise of giant companies including Tupperware and Avon. Today, if you were to start a traditional or credit-extension direct selling company in the country, it must have to be Natasha-compatible. Or at least, you have to recruit successful Natasha leaders for your business to enjoy an instant and more mass-based exposure. (Note that the predominance of Natasha in the Philippine direct sales industry has begun to fade these few years.)

Pros

When you do business with Natasha as a leader-direct seller, you are doing a business with the touch of Filipino culture, heartfelt and family-like relationship, more than, as in other companies, a "corporate culture" where you need to pass through dozens of departments before finally getting what you want. In Natasha, the owner is just like a brother to you, a humble and very considerate business partner. If you want something, talk to this one person, and that's it.

Secondly, if you have a direct selling business, be sure to carry Natasha products in order to complete your store. For Natasha is so popular that organizing a group of Natasha retailers is easier in view of its fast-moving apparel/shoes products and the Natasha-acceptance into the dynamics of the Filipino direct sales market. Doing a Natasha business is always a smart decision, for in Natasha, you'll earn more since its compensation plan is based on gross--at all levels of its rebates structure.

Cons

The second generation Natasha leaders will be facing thought-provoking concerns. For example, what will be the face of Natasha minus its strong man, its smart and well-followed leader? Today's direct-seller leaders of Natasha put their confidence, with regards to the company's continued sustainability and leadership in the market, so much on Natasha's great man, its inventor and founder, Sir Majar Jardiolin. Unless Natasha moves forward into the publicly-listed corporate world, then its lifespan for the next hundred years will be a serious concern.

Secondly, while Tupperware made its own plastic products, Avon, its own perfumes, Natasha is more on the distribution side, without the appetite for manufacturing. Should its apparel/shoes leadership in the market be seriously challenged by the Chinese/Korean-made cheap products, plus the mushrooming of malls in the countryside, then the sustainability of the Natasha dominance in the market is a grave concern in the decades to come.

Tupperware Brands

Tupperware became stronger in the direct sales market with its acquisition of Sara Lee Cosmetics in 2005. Hence the invention of the name Tupperware Brands. Tupperware has a time-tested marketing approach such as party selling, regular motivational meetings, and excellent incentive programs.

Pros

One advantage of doing a Tupperware business is its support program, namely, transportation allowance (which addresses the bulkiness issue of its plastic products!); regular company-assisted and funded retailer group meetings; very attractive incentive programs, cheap but quality products, its popularity and acceptability in the direct sales market. Doing a Tupperware business as a direct-seller leader is made easier by the Tupperware management, so much so on their new leaders who were discovered and nurtured by other companies.

Cons

To start a Tupperware business from scratch is quite difficult given its high collection efficiency rating (CER)requirement. Without sufficient cash, a new dealer could hardly take off the ground. As a result, Tupperware seems dominated more by moneyed but aged direct-sales leaders; the younger blood, to our observation, having found the business to be tough at square one. The exclusivity campaign of Tupperware (at least in the Philippines) failed to capture the interest of most direct sellers. Tupperware is good, but it loses attractiveness already by the younger generation of direct sellers. Lastly, Tupperware is a business for women. Husbands of most Tupperware dealers are turned chauffeurs--missing, to borrow from Bill Gates, "half of the talent" in the family. Brilliant husbands aren't tapped as a result. To further discourage the husbands, Tupperware gatherings have to be (is it officially?) started with a "Tupperware dance" (the kind that is obnoxious to most men--sending most of them to room corners--drinking coffee sometimes for a pretense!). (Our observation these few years is that Tupperware Brands in the Philippines is getting more aggressive in sales and the organization of its leaders. It is beginning to assert its market leadership again!)

Splash Direct Sales

(Note: The Direct Sales fork of Splash Corporation closed its operations nationwide in 2017)

Pros

Splash Corporation, the owner of Splash Direct Sales, is a 30-year old publicly-listed corporation, among the 300 top companies in the Philippines. It has global sales by the millions for its one product SKU alone that it produced known as "Seriously White." The good thing about Splash Direct Sales is its attractive compensation plan and marketing structure aside from its decades-old fast-moving products such as Extraderm. As the owner of HBC stores that are positioned in the malls nationwide, Splash Direct Sales is something to count on in the direct sales industry as a new player. One brilliant move of Splash is its franchise-like approach in doing business through its organizing "franchisee" led business centers--exposing the Splash Direct Sales icon consequently fast to the domain of ordinary direct sellers.

Cons

Splash Direct Sales is still an infant in the direct sales industry, having been there for the past three years only. As a new player, it is still experiencing muscular pains in the process of growing. As it is a publicly listed company, so it has still clumsy fingers yet in running the operations of over 60 branches and centers nationwide. There's too much who's who yet--too much bureaucracy.

More reviews on the next update.