Financial Daily from THE HINDU group of publications
Thursday, Aug 18, 2005
Financial Daily from THE HINDU group of publications Thursday, Aug 18, 2005 |
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Marketing
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Direct Marketing Modicare plans study on direct selling industry — To expand distribution network, may enter new product categories Sravanthi Challapalli
Chennai , Aug. 17 DIRECT marketing company Modicare will soon commission a study of the direct selling industry to identify issues that need to be addressed and opportunities that could be exploited. Speaking to Business Line here, Mr Chris Bolsover, Chief Executive Officer, Modicare, said the company aimed to refine its business models and practices if the study revealed the need for it to do so. It will also consider entering new product categories if there was demand. While he would not reveal the name of the market research agency as the contract has not been signed, he did say that the study would cost Rs 3 crore and would take three months to finish. Modicare's focus this year would be on training and building the network, Mr Bolsover said. The company has 2.5 lakh active distributors at present. Last month, the company introduced a new starter kit which has seen enrolment go up "exponentially". The company is recruiting 10,000 distributors a month, he added. It has 1,800 distribution points across 36 cities. The Indian Direct Selling Association (IDSA) has estimated market size at Rs 20,000 crore in the next five years, he said. The company has begun expanding geographically. It has begun recruiting people in Nepal and from there will go on to other SAARC countries and to markets where there is a big NRI population, such as West Asia, Mr Bolsover said. The company has just started distributing a range of electronic gadgets branded Innovations, which are priced between Rs 690 and Rs 1,950. It is also testing door-to-door catalogue selling as a business model with the launch of this new range, Mr Bolsover said. Modicare's turnover stood at Rs 250 crore at the end of March 2005. Skin care products and colour cosmetics account for 39 per cent of its business while wellness products account for 10 per cent. It also sells laundry and home care products and jewellery.
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