presentación de powerpoint€¦ · bolivia paraguay 21 years of experience the largest and most...

Specialists in market research and

opinión studies

Market ResearchSanta Cruz, 2019

Methodology

3

About Captura Consulting

At Captura Consulting we focus on Customer understanding and innovate

to our customer's brands become stronger and more competitive

Bolivia

Paraguay

17 años de experiencia

La cartera de clientes más

grande e importante

Referentes en los medios de

comunicación más reputados

Mas de 200 proyectos año

Más 10 mil encuestas mes

Equipo multidisciplinario de 40

personas

Software especializado para

encuestas y análisis

Miembros de ESOMAR y

certificados con la ISO 9001

Somos especialistas en el

consumidor y su relación

con las marcas, capaz de

obtener insights accionables

gracias a un manejo inter-

disciplinario del marketing

Bolivia

Paraguay

21 years of experience

The largest and most important

client portfolio

Referents in the most

reputed media

More than 10K surveys a month

Interdisciplinary team of 40

professionals

Specialized software for

surveys and analysis

ESOMAR MembersISO 9001 Certified

We are specialists in Customers

and their relationship with

brands, able to obtain

actionable information thanks to

interdisciplinary management of

Marketing

More than 200 projects a year

4

With non-probabilistic sampling and

for convenience based on a list

provided by ASOEM, online surveys

were applied through emails based

on a structured questionnaire and an

average duration of 10 minutes.

With a simple probabilistic and random

sampling, 900 surveys were

conducted to the general public (95%

confidence and 3.3% statistical error)

in the central axis. Sampling was

applied through face-to-face interviews

and using a structured questionnaire

with an averaged duration of 5

minutes.

Methodology

Objetive: To understand the importance of direct selling in Bolivia, both in the social and economic fields

and from the perspective of consumers and people working in the activity.

Personnel Involved

30 Pollsters 2 Tabulators 2 Analysts

1 Field Coordinador 1 Manager

General Public

(Customers):

Sellers

(By Catalog)

Directors

(Direct Selling

Companies)

With a non-probabilistic sampling and

for convenience, 621 surveys were

carried out in the central axis; Santa

Cruz (34%); La Paz (24%); El Alto

(21%) and Cochabamba (21%), with

an average duration of 18 minutes

through face-to-face visits, using a

structured questionnaire.

2 Programers

1 Project Director

6 Supervisors

Catalog sellers

Demography

7

Demography

Popular/Marginal Low

AB: 1%

C1: 4 %

C2: 11%

C3: 25%

D1: 34%

D2/E: 26%

SANTA CRUZ

High (ABC1) 7%

Medium Typical (C2) 13%

Medium Low (C3) 24%

Ascending Low (D1) 33%

Popular Low (D2/E) 23%

LA PAZ

High (ABC1) 6%


Medium Low (C3) 22%



EL ALTO

High (ABC1) 0%


Medium Low (C3) 26%



COCHABAMBA

High (ABC1) 5%


Medium Low (C3) 29%



Source: Muticlient Socioeconomic Levels Project - CAPTURA CONSULTING

26%

34%

25%

11%

5%

33%

26%

21%

13%

6%

39%

24%

21%

12%

5%

E/D2

D1

C3

C2

ABC1

Año 2011 Año 2014 Año 2017

=

+

+

-

-

Year 2011 Year 2014 Year 2017

8

MiddleSEL56%

LowSEL44%

More than 55 years2% 46-55 years

8%

36-45 years27%

25 - 35 years43%

Less than 25 years

20%

Yes39%

No61%

Gender

Catalog sellers - Profile

Most of the Catalog sellers are women (76%) from 25 to 35 years old (43%)

of SEL Medium (56%), who are not currently studying (61%).

Age

SEL

Are you currently studying?

Female

76%

Male24%

9

2%

12%18%

22%

33%

80%

Travel packages, vacations,lodging

Household Goods & Durables Wellness (Nutrition, supplements…)

Clothing & Accessories Jewelry & Bijouterie Cosmetics & Personal Care

What products do you sell predominantly?

General information

Sellers handle more than one product category.

Hombre

Products

SEL Gender Age City

TotalLow Middle Male Female

Less than 25

years

25 - 35

years

36-45

years

46-55

years

More than

55 yearsSCZ LPZ EAL CBBA

Cosmetics & Personal Care 80% 79% 54% 87% 82% 82% 76% 70% 92% 82% 71% 88% 78% 80%

Jewelry & Bijouterie 33% 34% 22% 37% 38% 34% 34% 16% 33% 33% 30% 37% 36% 33%

Clothing & Accessories 23% 23% 27% 21% 16% 24% 27% 20% 8% 21% 34% 13% 21% 22%

Wellness (Nutrition, supplements…) 19% 17% 36% 12% 13% 16% 23% 30% 8% 19% 22% 13% 17% 18%

Household Goods & Durables 12% 14% 18% 12% 13% 14% 15% 6% 0% 8% 21% 10% 15% 12%

Travel packages, vacations, lodging 2% 2% 6% 1% 2% 3% 2% 0% 0% 2% 4% 1% 2% 2%

Total 168% 169% 163% 170% 162% 173% 176% 142% 142% 164% 182% 162% 167% 168%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

* In red the highest values for each response by segments.

10

General Data

The city of La Paz has sellers that handle a greater variety of catalog sales categories

Cosmetics &

Personal Care

Jewelry &

BijouterieClothing &

Accessories

Household Goods

& Durables

Wellness

(Nutrition,

supplements..)

8%

12%

13%

13%

16%

17%

17%

18%

19%

19%

22%

23%

30%

36%

More than 55years

Female

Less than 25years

EAL

25 - 35 years

CBBA

Middle SEL

Total

Low SEL

SCZ

LPZ

36-45 years

46-55 years

Male

0%

6%

8%

10%

12%

12%

12%

13%

14%

14%

15%

15%

18%

21%

More than55 years

46-55 years

SCZ

EAL

Female

Low SEL

Total

Less than25 years

Middle SEL

25 - 35years

CBBA

36-45 years

Male

LPZ

8%

13%

16%

20%

21%

21%

21%

22%

23%

23%

24%

27%

27%

34%

More than55 years

EAL

Less than 25years

46-55 years

CBBA

Female

SCZ

Total

Low SEL

Middle SEL

25 - 35 years

Male

36-45 years

LPZ

16%

22%

30%

33%

33%

33%

33%

34%

34%

34%

36%

37%

37%

38%

46-55 years

Male

LPZ

SCZ

Low SEL

More than55 years

Total

Middle SEL

36-45 years

25 - 35years

CBBA

EAL

Female

Less than25 years

54%

70%

71%

76%

78%

79%

80%

80%

82%

82%

82%

87%

88%

92%

Male

46-55 years

LPZ

36-45 years

CBBA

Middle SEL

Low SEL

Total

Less than25 years

SCZ

25 - 35years

Female

EAL

More than55 years

Financials

12

Expenses

2018-2019Bs. Average

Catalog sellers have an Average Total Monthly Sales of bs. 1,229

Income/ExpenseRelated to direct selling

Revenue


Note: Sorted by the Revenue

Total Monthly Sales


Total Annual Sales


SCZ 15.060

Male 14.303

46-55 years 12.633

36-45 years 12.372

Middle SEL 10.841

Total 9.706

25 - 35 years 9.487

Low SEL 8.199

CBBA 7.452

LPZ 7.075

Female 6.707

EAL 6.185

More than 55 years 5.600

Less than 25 years 4.638

6.277

7.297

5.966

5.513

5.667

5.039

5.803

4.171

5.104

4.327

4.345

3.854

1.548

2.622

1.778

1.800

1.550

1.490

1.376

1.229

1.274

1.031

1.046

950

921

837

596

605

21.337

21.600

18.599

17.885

16.508

14.745

15.290

12.370

12.556

11.402

11.052

10.039

7.148

7.260

13

1.420

1.830

1.888

2.100

2.168

2.464

2.466

2.594

2.600

2.916

2.955

2.957

3.225

3.555

Less than 25years

EAL

Low SEL

More than 55years

Female

CBBA

Total

25 - 35 years

SCZ

LPZ

36-45 years

Middle SEL

46-55 years

Male

What is your monthly home contribution?

Bs. Average

54%

57%

56%

54%

57%

51%

54%

53%

52%

53%

58%

50%

52%

47%

28%

32%

29%

29%

31%

31%

29%

28%

27%

29%

35%

28%

25%

25%

16%

18%

20%

20%

20%

19%

20%

20%

19%

21%

16%

19%

23%

19%

16%

17%

17%

17%

18%

17%

16%

16%

13%

16%

25%

15%

16%

15%

22%

9%

23%

17%

25%

24%

19%

12%

16%

0%

16%

22%

12%

28%

39%

33%

45%

33%

36%

25%

32%

31%

33%

30%

31%

25%

28%

Sales Revenue Commissions Sales Incentives

Bonuses Annual Membership Other

Male 14.303

46-55 years 12.633

Middle SEL 10.841

36-45 years 12.372

LPZ 7.075

SCZ 15.060

25 - 35 years 9.487

Total 9.706

CBBA 7.452

Female 6.707

More than 55

years5.600

Low SEL 8.199

EAL 6.185

Less than 25

years4.638

Revenue by type (as a % of Total direct selling

revenue):

Catalog sellers have an Average Income of bs. 9,706

53% comes from Sales Revenue

Income/ExpenseRelated to direct selling

Revenue


7.297

5.966

5.667

5.513

4.327

6.277

5.803

5.039

5.104

4.345

1.548

4.171

3.854

2.622

Expenses


Note: Sorted by the monthly home contribution

14

58%

26%

8%4% 3%

Less than Bs. 2,100 Bs. 2,101 - 4,000 Bs.4,001 - 6,000 Bs. 6,001 - 8,000 More than Bs.8,000

What is your monthly home contribution?

The average monthly home contribution is 2,466 bs.

Cities of La Paz and Santa Cruz have the highest contribution.

Home Contribution


Amount Ranges

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

Less than Bs. 2.100 68% 49% 32% 65% 84% 51% 53% 42% 58% 58% 45% 71% 57% 58%

Bs. 2.101 – 4.000 26% 27% 34% 24% 16% 33% 22% 29% 33% 25% 32% 24% 25% 26%

Bs.4.001 – 6.000 4% 12% 19% 5% 0% 10% 11% 19% 8% 7% 14% 2% 12% 8%

Bs. 6.001 – 8.000 2% 6% 6% 4% 0% 4% 7% 2% 0% 5% 5% 2% 3% 4%

More than Bs.8.000 0% 6% 8% 2% 0% 2% 7% 8% 0% 5% 4% 1% 2% 3%

Average Contribution 1.888 2.957 3.555 2.168 1.420 2.594 2.955 3.225 2.100 2.600 2.916 1.830 2.464 2.466

Cases 269 350 145 474 125 269 165 48 12 212 152 126 129 619

15

On average, expenses represent 52% of Revenue.

Income and expenses of direct selling

Average Revenue

2018-2019

9.706 Bs.

Average Expenses

2018-2019

5.039 Bs

Revenue/Expense

SEL Gender Age City

Total

Low Middle Male FemaleLess than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Total Revenue from

Direct Selling Activities

2018-2019

Mean 8.199 10.841 14.303 6.707 4.638 9.487 12.372 12.633 5.600 15.060 7.075 6.185 7.452 9.706

Median 3.550 4.100 5.000 3.000 2.000 3.600 4.500 8.000 5.600 3.750 3.550 3.000 5.500 4.000

Mode 8.000 1.000 2.000 1.000 2.000 2.000 1.000 8.000 5.600 1.000 2.000 600 1.000 2.000

Total Expenses from

Direct Selling Activities

2018-2019

Mean 4.171 5.667 7.297 4.345 2.622 5.803 5.513 5.966 1.548 6.277 4.327 3.854 5.104 5.039

Median 1.800 1.500 2.182 1.500 1.000 1.500 2.500 1.500 679 2.000 1.750 1.500 1.200 1.545

Mode 500 1.000 1.000 1.000 200 1.000 3.000 1.000 100 1.000 1.000 100 1.000 1.000

16

31%

12% 13%19%

27%

53%

Other Annual Membership Bonuses Sales Incentives Commissions Sales Revenue

Revenue by type (as a % of Total direct selling revenue):

Sales Revenue represents more than 50% of their Revenue, for most segments. Except

for those under 25 years which represent less than 50%.

Income

Types of Revenue

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Sales Revenue 50% 56% 54% 53% 47% 54% 54% 57% 58% 51% 57% 52% 52% 53%

Commissions 28% 29% 28% 29% 25% 29% 29% 32% 35% 31% 31% 25% 27% 28%

Sales Incentives 19% 20% 16% 21% 19% 20% 20% 18% 16% 19% 20% 23% 19% 20%

Bonuses 15% 17% 16% 16% 15% 16% 17% 17% 25% 17% 18% 16% 13% 16%

Annual Membership 16% 23% 22% 16% 12% 24% 17% 9% 0% 25% 17% 22% 12% 19%

Other 31% 33% 28% 33% 28% 25% 45% 39% 30% 36% 33% 25% 31% 32%


* Values in the tables add up to more than 100% since they are average values of each type of income.

17

6%

5%

5%

5%

4%

29%

26%

25%

19%

32%

27%

16%

21%

26%

27%

18%

24%

17%

21%

15%

20%

29%

31%

30%

21%

Cosmetics &Personal Care

Clothing &Accessories

Wellness (Nutrition, supplements…)

Household Goods &Durables

Jewelry & Bijouterie

Less than Bs.50 Bs. 51-100 Bs.101-150 Bs.151-200 More than Bs.200

6%

28%24%

17%24%

Less than Bs.50 Bs. 51-100 Bs.101-150 Bs.151-200 More thanBs.200

What is the average customer spend per transaction?

The city of Santa Cruz has the highest average ticket

Average Ticket


Amount Ranges

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Less than Bs.50 6% 5% 7% 5% 9% 6% 2% 10% 17% 4% 5% 14% 2% 6%

Bs. 51-100 31% 27% 29% 28% 30% 32% 27% 12% 25% 23% 27% 35% 34% 28%

Bs.101-150 27% 22% 22% 25% 25% 23% 25% 30% 17% 27% 23% 19% 26% 24%

Bs.151-200 15% 20% 16% 18% 14% 19% 16% 18% 33% 19% 25% 13% 11% 17%

More than Bs.200 21% 26% 27% 23% 22% 20% 30% 30% 8% 27% 20% 19% 27% 24%

Average Expenses 132 142 139 138 130 134 149 149 122 147 141 119 139 138

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

* Mode of each product category

Average Ticket Bs. 138

18

Yes58%

No42%

Have you recruited into the business other sellers over the last 5 years?

The city of El Alto shows the largest number of sellers with the highest dependence

on Direct Selling.

Goals


Financial goals

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Supplementary income 63% 66% 44% 66% 67% 67% 66% 45% 70% 62% 60% 63% 73% 64%

Primary income 19% 22% 30% 20% 18% 24% 16% 27% 20% 23% 16% 26% 15% 21%

No financial goals 8% 5% 19% 5% 8% 4% 8% 6% 10% 7% 9% 6% 5% 7%

Other 7% 5% 7% 6% 4% 3% 7% 18% 0% 7% 11% 2% 5% 6%

One-off payment for a

specific purchase3% 2% 0% 3% 3% 2% 3% 3% 0% 2% 4% 3% 1% 3%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

47%

47%

52%

54%

55%

55%

56%

58%

58%

59%

59%

60%

60%

66%

LPZ

Male

46-55 years

Low SEL

25 - 35 years

CBBA

EAL

Total

More than 55 years

Middle SEL

Less than 25 years

Female

36-45 years

SCZ67%

70%

44%

74%

67%

20%

16%

31%

16%

20%

4%

2%

25%

0%

1%

Cosmetics & Personal Care

Clothing & Accessories


Household Goods & Durables


Supplementary income Primary income Other

Effort

20

66%

63%

55%

55%

53%

52%

52%

51%

49%

48%

47%

47%

42%

33%

46-55 years

SCZ

CBBA

Middle SEL

Male

25 - 35 years

Total

Female

Less than 25 years

36-45 years

LPZ

Low SEL

More than 55 years

EAL

Yes52%

No48%

Do you work full-time?

Full - Time Job

Based on respondents who do not have a full-time job

What are the main reasons that you do not work on a full-time

basis?

35%

33%

24%

17%

16%

11%

7%

6%

6%

5%

3%

2%

1%

9%

Other personal or family responsibilities

Caring for children

Choose to work part-time

No suitable jobs available which allow forflexible work hours

Attending an educational institution

Could not find full-time work

Considered too young or too old by employers

No suitable jobs available in locality or line ofwork

Caring for disabled or elderly relatives

Cost of childcare

Involved in volunteer work

Lack of the necessary schooling, training, skillsor experience

Own illness or disability

Other

21

Full - Time Job

* In red the highest values for each response by segments. Based on respondents who do not have a full-time job

Main Reasons

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Other personal or family responsibilities 34% 35% 29% 36% 30% 35% 38% 35% 29% 37% 26% 35% 41% 35%

Caring for children 31% 35% 7% 41% 19% 38% 42% 24% 0% 33% 29% 40% 29% 33%

Choose to work part-time 20% 26% 28% 21% 19% 26% 20% 35% 0% 29% 33% 9% 21% 24%

No suitable jobs available which allow for

flexible work hours17% 15% 24% 14% 23% 16% 14% 6% 0% 22% 24% 6% 14% 17%

Attending an educational institution 19% 13% 25% 13% 45% 12% 2% 0% 0% 15% 21% 9% 17% 16%

Could not find full-time work 14% 10% 16% 11% 11% 12% 8% 29% 29% 8% 15% 11% 16% 11%

Considered too young or too old by

employers10% 3% 12% 5% 13% 1% 7% 18% 29% 8% 6% 8% 3% 7%

No suitable jobs available in locality or

line of work7% 6% 10% 6% 8% 5% 7% 12% 0% 5% 8% 2% 14% 6%

Caring for disabled or elderly relatives 5% 4% 1% 6% 5% 4% 6% 6% 0% 10% 3% 2% 3% 6%

Cost of childcare 6% 3% 0% 6% 3% 7% 4% 0% 0% 5% 8% 4% 2% 5%

Involved in volunteer work 2% 4% 4% 3% 5% 5% 1% 0% 0% 1% 5% 1% 7% 3%

Lack of the necessary schooling, training,

skills or experience2% 3% 1% 3% 2% 2% 4% 0% 0% 3% 4% 1% 2% 2%

Own illness or disability 1% 1% 0% 1% 0% 0% 1% 6% 14% 1% 3% 0% 0% 1%

Other 10% 9% 6% 10% 6% 9% 14% 0% 14% 8% 8% 16% 3% 9%

Total 179% 168% 165% 176% 188% 172% 169% 171% 114% 186% 190% 146% 172% 173%

Cases 143 158 68 233 64 129 84 17 7 78 80 85 58 301

22

25%

21%

12%

6%

5%

5%

4%

4%

3%

3%

3%

2%

2%

1%

1%

0%

0%

Personal and Other Services

Retail Trade

Education

Health and Community Services

Accommodation, Cafes andRestaurants

Wholesale Trade

Manufacturing

Communication Services

Finance and Insurance

Property and Business Services

Construction

Government Administration andDefence

Transport and Storage

Cultural and Recreational Services

Agriculture, Forestry and Fishing

Mining

Electricity, Gas and Water Supply

In what job/industry?

Other Activities


Based on respondents who carry out another activity besides direct sales

70%

69%

65%

65%

64%

63%

62%

62%

61%

61%

59%

52%

50%

25%

46-55 years

CBBA

36-45 years

25 - 35 years

Middle SEL

SCZ

Female

LPZ

Total

Male

Low SEL

EAL

Less than 25 years

More than 55 years

Yes61%

No39%

Are you employed outside of direct selling?

23

Other Activities


Based on respondents who carry out another activity besides direct sales

Job/Industry

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Personal and Other Services 26% 24% 27% 25% 18% 26% 30% 23% 0% 20% 30% 35% 21% 25%

Retail Trade 19% 23% 11% 24% 24% 19% 23% 20% 33% 19% 20% 21% 26% 21%

Education 15% 10% 14% 12% 24% 12% 8% 6% 0% 16% 7% 12% 11% 12%

Health and Community Services 6% 7% 2% 7% 0% 7% 6% 11% 33% 7% 5% 3% 9% 6%

Accommodation, Cafes and

Restaurants6% 5% 3% 6% 5% 6% 6% 3% 0% 7% 4% 6% 3% 5%

Wholesale Trade 6% 4% 8% 4% 10% 5% 1% 9% 0% 6% 6% 6% 1% 5%

Manufacturing 6% 4% 1% 5% 3% 3% 7% 3% 0% 1% 4% 9% 6% 4%

Communication Services 4% 4% 10% 2% 0% 7% 2% 0% 0% 4% 5% 0% 6% 4%

Finance and Insurance 3% 4% 2% 4% 3% 5% 2% 3% 0% 5% 1% 2% 4% 3%

Property and Business Services 3% 4% 2% 4% 2% 4% 1% 9% 33% 4% 3% 2% 3% 3%

Construction 1% 4% 4% 3% 5% 2% 5% 3% 0% 4% 4% 3% 1% 3%

Government Administration and

Defence3% 2% 7% 1% 0% 1% 5% 6% 0% 1% 3% 0% 3% 2%

Transport and Storage 1% 2% 3% 1% 2% 2% 2% 3% 0% 3% 2% 0% 1% 2%

Cultural and Recreational Services 1% 2% 2% 1% 2% 1% 2% 0% 0% 1% 3% 0% 1% 1%

Agriculture, Forestry and Fishing 0% 1% 0% 1% 2% 1% 1% 0% 0% 1% 0% 0% 2% 1%

Mining 1% 0% 1% 0% 2% 0% 0% 0% 0% 0% 0% 2% 0% 0%

Electricity, Gas and Water Supply 0% 0% 1% 0% 0% 0% 0% 3% 0% 0% 0% 0% 1% 0%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 159 225 90 294 62 176 108 35 3 134 94 66 90 384

24

37%

18%16%16%13%

Working in own orfamily business

Casual basisPermanentfull-time

Fixed-termcontract

Permanentpart-time

Wich of the following best describes the conditions of employment outside of direct selling

Employment Condition


Based on those who have a full time job and/or another activity

37% of catalog sellers who have a full-time job and/or other activities

work in their own or family business.

Employment conditions

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Working in own or family business 36% 37% 27% 40% 34% 36% 38% 40% 33% 34% 29% 47% 42% 37%

Casual basis 20% 15% 16% 17% 24% 20% 10% 9% 0% 13% 24% 29% 6% 18%

Permanent full-time 16% 18% 23% 15% 8% 15% 20% 34% 0% 20% 18% 6% 20% 16%

Fixed-term contract 12% 19% 21% 15% 18% 15% 19% 9% 33% 21% 15% 6% 18% 16%

Permanent part-time 15% 12% 13% 13% 16% 13% 12% 9% 33% 12% 14% 12% 14% 13%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 155 219 86 288 62 174 104 31 3 128 94 66 86 374

25

Work Hours

How many hours do you usually work

per week…?

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


On direct selling activities?

Mean 14 15 18 14 16 13 16 19 10 13 14 18 16 15

Median 10 10 8 10 10 8 10 15 10 7 10 14 8 10

Mode 2 2 4 2 20 2 2 4 1 2 4 30 2 2

In all Jobs?

Mean 36 40 39 38 37 38 38 42 34 38 37 43 37 38

Median 40 40 48 40 40 40 40 44 40 40 40 42 38 40

Mode 40 50 50 40 40 50 60 50 8 40 50 50 40 50

To another employment if

you would not be involved

in direct selling?

Mean 21 22 21 22 21 23 22 20 10 19 21 28 20 22

Median 14 10 10 12 12 12 12 12 6 9 10 24 10 12

Mode 20 8 8 8 8 8 8 8 1 8 8 40 8 8

Week hours dedicated to

Direct SellingAverage

15 Hrs

Week hours dedicated to

all activitiesAverage

38 Hrs

People say that if they were in another activity (different than direct selling),

they would have to spend 7 more hours a week than they already do.

Week hours dedicated to other

activities (not involved in direct

selling)Average

22 Hrs

Participation

27

1%

20%

24%

45%

46%

63%

64%

Other

Training and support offered by direct sellingcompany

Socialising

Potential income

Personal consumption of products

Desire to be a small business owner

Flexibility

What are the 3 main reasons to engage in direct selling?

Motivations for involvement in the direct selling

industry


Motivations

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Flexibility 65% 63% 63% 64% 62% 61% 68% 66% 83% 63% 63% 69% 60% 64%

Desire to be a small business owner 59% 67% 51% 67% 65% 63% 65% 56% 67% 59% 66% 67% 63% 63%

Personal consumption of products 44% 48% 29% 51% 47% 47% 47% 36% 50% 52% 39% 43% 47% 46%

Potential income 43% 47% 57% 42% 42% 49% 44% 38% 42% 41% 53% 40% 48% 45%

Socialising 24% 23% 16% 26% 28% 22% 22% 26% 8% 23% 16% 29% 27% 24%

Training and support offered by direct

selling company21% 19% 23% 19% 22% 19% 18% 24% 17% 21% 16% 24% 18% 20%

Other 1% 1% 0% 2% 2% 0% 1% 7% 0% 2% 1% 1% 1% 1%

Total 257% 267% 239% 270% 266% 261% 265% 253% 267% 261% 255% 273% 265% 263%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

28

25%24%18%

13%13%6%

Permanentfull-time

Casual basisWorking inown or family

business

Fixed-termcontract

UnemployedPermanentpart-time

What was your employment status prior to being involvedin the direct selling industry?

13% of the Catalog Sellers were unemployed before getting involved in the direct selling

industry, mainly Women (16%) and those under 25 (24%)

Prior Employment Status


Previous Employment Status

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Permanent full-time 26% 25% 35% 22% 10% 23% 39% 32% 25% 27% 28% 21% 24% 25%

Casual basis 23% 25% 27% 23% 32% 24% 15% 28% 42% 21% 29% 28% 18% 24%

Working in own or family business 19% 18% 10% 21% 19% 19% 18% 16% 17% 14% 16% 25% 22% 18%

Fixed-term contract 11% 14% 16% 12% 9% 14% 18% 4% 8% 18% 13% 5% 14% 13%

Unemployed 14% 13% 6% 15% 23% 11% 8% 14% 8% 13% 11% 14% 15% 13%

Permanent part-time 7% 5% 5% 7% 7% 9% 2% 6% 0% 6% 4% 7% 8% 6%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

29

30%

39%

12%

19%

Less than 1 year 1 a 3 years 3 a 5 years More than 5 years

How long have you been involved in the direct selling industry?

Medium SEL sellers stay longer than Low SEL ones

Participation


Participation in Direct Selling

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More than


Less than 1 year 36% 25% 30% 30% 45% 28% 25% 22% 8% 34% 30% 30% 22% 30%

1 a 3 years 40% 38% 50% 35% 44% 45% 34% 16% 17% 38% 41% 37% 40% 39%

3 a 5 years 12% 13% 9% 14% 8% 13% 15% 10% 17% 10% 13% 13% 15% 12%

More than 5 years 12% 24% 11% 22% 3% 14% 26% 52% 58% 18% 16% 20% 23% 19%

Average Years of Participation 2,30 3,10 2,27 2,90 1,65 2,55 3,23 4,47 5,13 2,59 2,63 2,79 3,12 2,74

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

Average Years of Participation

2,74 años

Average Years of Participation

2,7

2,8

2,8

2,8

2,9




Cosmetics & PersonalCare


30

44%

27%

22%

20%

18%

17%

15%

10%

10%

5%

5%

5%

2%

2%

1%

1%

2%

Minimum purchasing of products

Recruiting others

Rejection

Whether you personal expectations are beingmet

Sales targets

Marketing support by your direct sellingcompany

Whether you have success or difficulty inmaking sales

Support from your direct selling companyand uplines

Compensation plan

Unfair competition (product auction, socialnetworks)

Image

Happiness with the product range

Hosting of presentations

People do not pay on time

Time availability

Stock, few products

Other

What are the main issues that affect your effort and success in direct selling?

Issues

Respondents recognize at least 2 issues

that affect the effort and success of direct selling.

Main IssuesCosmetics &

Personal Care

Clothing &

Accessories

Wellness

(Nutrition,

supplements)

Household

Goods &

Durables

Jewelry &

bijouterie

Minimum purchasing of

products45,5% 49,3% 34,8% 45,7% 43,5%

Recruiting others 26,3% 25,0% 36,6% 18,5% 25,6%

Rejection 21,5% 23,6% 29,5% 29,6% 17,9%

Whether you personal

expectations are being met19,8% 27,1% 20,5% 22,2% 22,7%

31

Issues


Respondents identify 2 main issues: Minimum purchase of products and

having to recruit other people to generate more sales.

Main Issues

SEL Gender Age City


Less

than 25

years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

Minimum purchasing of products 46% 43% 44% 44% 46% 48% 39% 34% 33% 50% 45% 31% 46% 44%

Recruiting others 26% 27% 27% 27% 28% 29% 24% 26% 25% 36% 27% 16% 22% 27%

Rejection 23% 21% 29% 20% 29% 21% 19% 22% 8% 19% 24% 25% 21% 22%

Whether you personal expectations are being met 21% 19% 17% 21% 24% 19% 20% 10% 33% 21% 20% 19% 18% 20%

Sales targets 17% 19% 16% 18% 17% 19% 18% 14% 25% 20% 21% 10% 18% 18%

Marketing support by your direct selling company 17% 17% 25% 15% 12% 20% 22% 2% 0% 14% 22% 13% 22% 17%

Whether you have success or difficulty in making

sales16% 15% 15% 15% 23% 13% 13% 16% 8% 17% 21% 8% 14% 15%

Support from your direct selling company and

uplines12% 9% 11% 10% 7% 9% 14% 12% 17% 11% 11% 6% 14% 10%

Compensation plan 10% 11% 14% 9% 8% 10% 10% 14% 25% 9% 13% 6% 12% 10%

Unfair competition (product auction, social

networks)3% 7% 1% 6% 3% 4% 7% 6% 8% 1% 3% 16% 3% 5%

Image 5% 5% 10% 4% 7% 7% 2% 2% 0% 5% 7% 6% 3% 5%

Happiness with the product range 3% 6% 5% 5% 4% 5% 5% 6% 8% 5% 5% 2% 8% 5%

Hosting of presentations 1% 3% 7% 1% 4% 3% 1% 0% 0% 2% 3% 1% 2% 2%

People do not pay on time 1% 2% 1% 2% 1% 1% 2% 2% 8% 2% 1% 4% 0% 2%

Time availability 1% 1% 1% 1% 0% 1% 2% 0% 8% 0% 1% 2% 1% 1%

Stock, few products 1% 1% 0% 1% 1% 1% 1% 0% 0% 0% 0% 2% 1% 1%

Other 1% 1% 1% 1% 2% 1% 1% 2% 0% 2% 1% 2% 1% 2%

Total 206% 205% 222% 200% 217% 212% 198% 168% 208% 214% 226% 168% 205% 204%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

32

32%31%24%23%

19%14%

8%1%1%2%

Productdemand

Othercommitments

Product rangeHours ofworkedrequired

Other productrelated

Ability torecruit other

sellers

Disapprovingfamily and

friends

CompetitionCapital,payments, etc.

Other

Limitations

What would you say your limitations to increase your participation and

grow your direct sales business are?

Limitations

Cosmetics &

Personal

Care

Clothing &

Accessories

Wellness

(Nutrition,

supplements)

Household

Goods &

Durables

Jewelry &

bijouterie

Product demand 33% 39% 29% 35% 37%

Other commitments 30% 36% 31% 36% 29%

Hours of worked

required22% 31% 20% 27% 22%

Product range 25% 26% 13% 30% 22%

Other product related 20% 21% 15% 16% 18%

Ability to recruit other

sellers15% 11% 13% 9% 15%

Disapproving family and

friends8% 6% 10% 7% 9%


33

Limitations


Limitations

SEL Gender Age City


Less

than 25

years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

Product demand 30% 33% 29% 32% 32% 29% 35% 36% 17% 31% 28% 36% 32% 32%

Other commitments 33% 29% 29% 31% 38% 34% 27% 6% 33% 31% 28% 30% 34% 31%

Product range 25% 23% 20% 25% 26% 21% 27% 24% 17% 22% 24% 23% 28% 24%

Hours of worked required 22% 24% 26% 22% 24% 24% 21% 16% 50% 24% 32% 15% 20% 23%

Other product related 21% 18% 22% 18% 17% 21% 18% 24% 8% 19% 19% 19% 20% 19%

Ability to recruit other sellers 14% 13% 10% 14% 18% 13% 10% 14% 17% 15% 10% 15% 12% 14%

Disapproving family and friends 6% 9% 5% 8% 6% 7% 9% 6% 8% 9% 7% 8% 4% 8%

Competition 1% 1% 0% 1% 1% 1% 1% 0% 0% 0% 1% 3% 2% 1%

Capital, payments, etc. 1% 1% 0% 1% 2% 0% 0% 4% 8% 0% 2% 2% 0% 1%

Other 3% 2% 2% 2% 1% 2% 3% 2% 8% 3% 1% 3% 1% 2%

Total 155% 152% 144% 156% 163% 154% 150% 132% 167% 154% 152% 154% 152% 153%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

What would you say your limitations to increase your participation and

grow your direct sales business are?

32%31%24%23%

19%14%

8%1%1%2%

Product demandOthercommitments

Product rangeHours of workedrequired

Other productrelated

Ability to recruitother sellers

Disapprovingfamily and

friends

CompetitionCapital,payments, etc.

Other

Are there any limitations to increasing your direct selling involvement and growing a business in direct selling?

Benefits

35

65%64%63%59%54%

48%

The flexibility available tobalance work and non-

work commitments

Social interactionThe work itself (what youdo)

Satisfaction RateTotal remunerationNumber of hours worked

How satisfied are you with the following aspects of your involvement in the direct selling industry?

For Catalog sellers it is more important the total remuneration they get for direct sales.

The city of Santa Cruz (62%) has the highest level of satisfaction.

Satisfaction with participation in the Industry


Note: Top Two Box = Good (7-8) + Very Good (9-10)

70%

Confort

Zone

Risk Zone

Dimension Weight

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

Total remuneration 24% 51% 55% 59% 52% 58% 53% 52% 47% 58% 61% 48% 49% 50% 54%

The work itself (what you do) 23% 60% 63% 66% 61% 64% 61% 61% 64% 83% 69% 53% 63% 60% 63%

Social interaction 20% 58% 68% 56% 66% 62% 64% 63% 69% 67% 64% 64% 62% 65% 64%

The flexibility available to balance

work and non-work commitments18% 61% 68% 63% 66% 63% 62% 70% 65% 75% 66% 70% 67% 57% 65%

Number of hours worked 15% 43% 51% 51% 47% 47% 48% 47% 52% 50% 47% 45% 54% 46% 48%

Satisfaction Rate 100% 55% 61% 59% 58% 59% 58% 59% 59% 67% 62% 56% 59% 56% 59%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

36

56%

42%

41%

38%

25%

23%

23%

16%

11%

11%

1%

Independence / freedom

Improved self confidence

Consuming for your own use

More social interaction

Business / managerial skills

Improved life skills (organisationalskills, communication, etc.)

Improved work-life balance

Improved physical health

Improved support networks

Improved mental wellbeing

Other

Choose the 3 most important benefits obtained through your

participation in the direct selling industry

Benefits

Benefits

Cosmetics &

Personal

Care

Clothing &

Accessories

Wellness

(Nutrition,

supplements)

Household

Goods &

Durables

Jewelry &

bijouterie

Improved self

confidence55% 53% 44% 63% 55%

Business / managerial

skills31% 39% 44% 32% 27%

Independence / freedom 35% 32% 11% 28% 40%

Improved physical

health17% 13% 36% 17% 14%

More social interaction 29% 28% 4% 22% 26%

Consuming for your own

use26% 14% 10% 15% 27%

Improved life skills

(organisational skills,

communication, etc.)

14% 12% 10% 15% 18%

Improved work-life

balance15% 15% 5% 17% 12%

Improved mental

wellbeing9% 10% 1% 3% 11%

Improved support

networks9% 2% 3% 3% 9%

Other 0% 1% 1% 0% 1%


37

Most of Catalog sellers (56%) consider that Independence/freedom

is the most important benefit obtained by their participation in direct sales

Benefits


Benefits

SEL Gender Age City

Total

Low Middle Male Female

Less

than 25

years

25 - 35

years

36-45

years

46-55

years

More

than

55

years

SCZ LPZ EAL CBBA

Independence / freedom 58% 55% 56% 57% 51% 58% 59% 58% 33% 53% 65% 54% 55% 56%

Improved self confidence 44% 41% 32% 45% 46% 43% 38% 42% 33% 40% 37% 48% 45% 42%

Consuming for your own use 40% 41% 28% 44% 38% 42% 41% 36% 50% 42% 38% 44% 37% 41%

More social interaction 35% 41% 37% 39% 37% 39% 39% 34% 33% 33% 40% 45% 38% 38%

Business / managerial skills 21% 29% 35% 22% 26% 29% 20% 28% 0% 23% 28% 21% 31% 25%

Improved life skills (organisational skills,

communication, etc.)23% 23% 26% 22% 22% 24% 25% 12% 17% 28% 22% 15% 24% 23%

Improved work-life balance 23% 23% 24% 22% 23% 20% 24% 30% 17% 25% 22% 20% 23% 23%

Improved physical health 18% 13% 16% 15% 17% 10% 17% 26% 50% 20% 7% 15% 17% 16%

Improved support networks 13% 10% 11% 11% 20% 9% 8% 6% 25% 10% 13% 13% 10% 11%

Improved mental wellbeing 11% 10% 10% 11% 10% 8% 15% 14% 8% 8% 11% 13% 11% 11%

Other 0% 1% 0% 1% 0% 0% 1% 2% 0% 1% 0% 1% 0% 1%

Total 287% 285% 275% 289% 290% 283% 287% 288% 267% 283% 282% 290% 290% 286%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

38

66%

64%

38%

29%

15%

5%

1%

Discounted products

Gifts / Vouchers

Recognition, awards

Ability to attend seminars withother distributors

Interstate / international trips

Car

Other

What non-monetary rewards do you receive through your participation in the industry?

Benefits

58% of sellers received

training for direct

sales

Have you received training for

direct selling?

Do you manage a down-line?

32% of the sellers

manage a down-line

Gifts/vouchers and discounts in products are the main non-monetary rewards

that sellers receive through their participation in the direct selling industry

39

Gifts/vouchers and discounts in products are the main non-monetary rewards

that sellers receive through their participation in the direct selling industry

Beneficios

Benefits

Cosmetics &

Personal

Care

Clothing &

Accessories

Wellness

(Nutrition,

supplements)

Household

Goods &

Durables

Jewelry &

bijouterie

Ability to attend

seminars with other

distributors

29% 25% 37% 25% 30%

Gifts / Vouchers 72% 66% 38% 73% 78%

Discounted products 68% 61% 66% 59% 64%

Interstate / international

trips15% 9% 24% 14% 13%

Car 6% 4% 6% 4% 6%

Recognition, awards 42% 34% 29% 46% 43%

Other 0% 1% 4% 1% 0%

None 1% 5% 2% 1% 2%

Do you manage a down-line?Have you received training for direct selling?

30%

30%

33%

37%

42%






49% 52%59% 59% 61%


Household Goods& Durables


Jewelry & Bijouterie Cosmetics &Personal Care

40

51%59% 59%

68%

Direct selling companycomplaint handling

procedures

Direct selling companysupport of customer

interactions

General Satisfaction Direct selling companysupport with delivery

system

Indicate your level of satisfaction with:

59% of Catalog Sellers are satisfied with the direct selling companies effort.

General Satisfaction


70%Confort

Zone

Risk Zone

Attributes

SEL Gender Age City


Less

than 25

years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

Direct selling company support

with delivery system (to you / final

customer)

66% 67% 61% 69% 72% 64% 66% 72% 67% 73% 61% 69% 62% 68%

Direct selling company support of

customer interactions53% 63% 56% 59% 62% 55% 56% 76% 67% 61% 57% 59% 55% 59%

Direct selling company complaint

handling procedures48% 52% 46% 51% 58% 47% 46% 58% 58% 52% 47% 56% 46% 51%

General Satisfaction 56% 61% 54% 60% 64% 55% 56% 69% 64% 62% 55% 61% 54% 59%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

Note: Top Two Box = Good (7-8) + Very Good (9-10)

52%

56%

57%

60%

62%






Customers

42

37%

23% 24%

40%

Other customers Recruits into your team – the down line

Personal use Family / Friends

Approximately, what proportion of your sales come from...?

On average, the main customers of the catalog sellers are

Family / Friends (40%) and other customers (37%).

Customers

Customers

SEL Gender Age City

Total


25 years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

Family / Friends 39% 41% 31% 42% 40% 40% 41% 35% 59% 43% 39% 35% 41% 40%

Recruits into your team – the

down line21% 25% 29% 21% 23% 24% 24% 20% 16% 22% 23% 26% 25% 23%

Personal use 24% 25% 29% 23% 26% 24% 23% 25% 16% 25% 27% 23% 22% 24%

Other customers 38% 37% 36% 38% 34% 36% 41% 39% 52% 33% 37% 46% 35% 37%


43

Other Mail Email

Company

Website

Own

Website

Groups

Meetings Telephone Social Media In Person

1% 5% 7% 9% 11% 22% 47% 50% 82%

82% of the catalog sellers interact in person with their clients,

the city of La Paz sellers maintain the highest contact points.

Customer Interaction


How do you interact with your customers?

Interact

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

In person 80% 85% 73% 86% 79% 82% 84% 88% 92% 78% 83% 87% 86% 82%

Online via social media 48% 52% 54% 49% 58% 52% 45% 42% 25% 51% 56% 49% 44% 50%

Over the phone 44% 49% 54% 44% 38% 55% 45% 34% 33% 54% 46% 36% 47% 47%

Group meetings 19% 24% 22% 22% 19% 24% 20% 20% 42% 20% 24% 21% 23% 22%

Online via own website 8% 13% 16% 9% 9% 10% 12% 16% 17% 13% 13% 9% 8% 11%

Online via direct selling Company website 10% 9% 13% 8% 9% 9% 11% 8% 8% 10% 9% 8% 10% 9%

Email 5% 9% 18% 4% 5% 9% 6% 8% 0% 6% 12% 2% 8% 7%

Mail 4% 7% 10% 4% 3% 6% 7% 4% 8% 5% 9% 2% 7% 5%

Other 0% 2% 2% 1% 0% 1% 2% 0% 0% 1% 2% 0% 1% 1%

Total 217% 249% 263% 226% 220% 247% 232% 220% 225% 237% 253% 213% 232% 234%

Cases 271 350 147 474 125 269 165 50 12 212 152 126 131 621

44

WhatsApp (84%) is most used network by Catalog sellers

to interact with their customers.

Customer Interaction

Social Media

SEL Gender Age City


Less than

25 years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

WhatsApp 76% 88% 82% 84% 80% 83% 88% 100% 50% 92% 80% 76% 82% 84%

Facebook 54% 50% 64% 50% 68% 57% 30% 30% 50% 54% 56% 48% 46% 52%

Instagram 8% 3% 9% 4% 9% 2% 5% 0% 0% 8% 4% 2% 0% 5%

Twitter 2% 0% 0% 1% 0% 2% 0% 0% 0% 2% 0% 0% 0% 1%

Total 140% 140% 155% 139% 157% 143% 123% 130% 100% 156% 140% 126% 129% 141%

Cases 129 185 79 235 73 140 77 21 3 108 87 62 57 314

84% Whatsapp

52% Facebook

5% Instagram

1% Twitter


Based on those who use social networks to interact with customers

What is Social Media that you use more frequently?

45

26%

37%

27%

17%12%

Less than 25years

25-35 years 36-45 years 46-55 years More than 55years

What percentage of your customers fall within the following age ranges?

On average, 37% of clients are between 25 and 35 years old.

Customers

Average age 43 years

Customer Age

SEL Gender Age City

Total


25 years

25 - 35

years

36-45

years

46-55

years

More

than 55

years

SCZ LPZ EAL CBBA

Less than 25 years 28% 24% 25% 27% 37% 23% 21% 21% 34% 27% 24% 27% 26% 26%

25-35 years 37% 38% 37% 38% 31% 42% 36% 35% 26% 39% 37% 37% 36% 37%

36-45 years 25% 29% 27% 27% 25% 26% 31% 27% 27% 26% 30% 28% 26% 27%

46-55 years 16% 17% 15% 17% 14% 15% 20% 24% 21% 16% 20% 14% 17% 17%

More than 55 years 12% 13% 11% 13% 12% 10% 13% 20% 17% 13% 13% 10% 13% 12%


22%

20%

21%

21%

23%

32%

34%

28%

29%

31%

23%

23%

23%

25%

22%

13%

14%

17%

16%

14%

10%

9%

11%

9%

10%






Less than 25 years 25-35 years 36-45 years 46-55 years More than 55 years

46

72%

59%56%

41%

25%

13%11%

1%

QualityPriceBrandSellerrelationship

ServiceConvenienceValueOther

Quality (72%), Price (59%) and Brand (56%) are the main reasons customers

buy products by catalog.

Motivations

Have you received any complaints over the

last 12 months?

26%of sellers have

received a

complaint from

their customers

Why do believe your customers purchase your product? (please select

up to 3 responses)

Purchase Reasons

Cosmetics &

Personal

Care

Clothing &

Accessories

Wellness

(Nutrition,

supplements)

Household

Goods &

Durables

Jewelry &

bijouterie

Quality 74% 66% 69% 63% 71%

Price 63% 66% 45% 73% 60%

Brand 60% 54% 40% 46% 59%

Seller relationship 43% 43% 44% 40% 46%

Service 23% 25% 29% 26% 23%

Convenience 12% 15% 14% 15% 13%

Value 9% 11% 11% 15% 8%

Other 1% 1% 4% 0% 1%


42%

31%

30%

26%

24%






47

Sellers Conclusions

Interviewed sellers indicate that they manage more than one category, being the city

of La Paz the place where they handle more categories, the categories of clothing

and household items predominate in this city over the others.

The average ticket is 138 Bs; those over 25 years of age generate higher average

tickets than those who are under 25 years old; The cities of Santa Cruz and La Paz,

generate higher expenses on average than the other cities.

The main goal for sellers is to generate additional income; 58% recruited other people

in the last 5 years, which shows that it is not the main objective to bring more

members to the catalog sale.

Flexibility and the desire to be your own boss, are the main reasons to venture into

direct sales; It is worth noting that the main and secondary reasons for direct selling

vary by city, for Santa Cruz, potential income is a more important variable than for

other cities, just as for women it is more important than for men.

48

Sellers Conclusions

The main difficulties affecting sellers are minimum purchase, recruitment, people

rejection and meeting personal expectations; Among the limitations they face to

increase their income, the product demand, other activities that interfere with the sale,

the variety of products and the work hours work required.

Other activities and the hours of dedication are personal attributions to the

commitment to direct sales, while the generation of demand and the variety of

products are limitations that can be attributed to companies since they do not depend

on them directly.

While satisfaction with direct sales is low, the benefits can be used as a key to

improving it; Direct selling is seen as a form of independence, freedom, confidence,

product consumption, and social integration.

The main reasons why products are purchased are quality, price, and brand; These

characteristics show that the products have great value (quality and price ratio). 26%

of sellers mentioned that they received complaints from their customers.

General Public

General Information

51

39% 37%43%

38%

50%56%

48% 48%51% 53%

58%

41%

31%34%

39% 41% 42% 45% 45% 45%49%

53% 55%58%

CBBA Male Low SEL 41 a 65 18 a 25 SCZ LPZ Total 26 a 40 Middle SEL Female EAL

Have you ever bought a product by catalog?

2016 2019

45% of people bought products by catalog over the last 12 months,

3% below the previous shot.

Buying

Answers

SEL Gender Age City

Total

Low Middle Male Female 18 a 25 26 a 40 41 a 65 SCZ LPZ EAL CBBA

Yes 39% 53% 34% 55% 42% 49% 41% 45% 45% 58% 31% 45%

No 61% 47% 66% 45% 58% 51% 59% 55% 55% 43% 69% 55%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 538 362 439 461 272 357 271 300 200 200 200 900


3%

52

In both shots, the high price of the products and preference to shop in stores,

remain as the two main reasons for not having purchased products by catalog

Buying Demotivators


Purchase MotivationSEL Gender Age City

TotalLow Middle Male Female 18 a 25 26 a 40 41 a 65 SCZ LPZ EAL CBBA

Expensive Products 49% 36% 42% 48% 46% 45% 43% 38% 44% 42% 54% 43%

Preference to shop in stores 35% 33% 36% 32% 32% 36% 36% 38% 25% 46% 31% 36%

Never been contacted by a catalog seller 30% 33% 32% 31% 31% 34% 29% 39% 25% 21% 33% 31%

Do not trust catalog sale 25% 34% 29% 27% 28% 29% 27% 23% 37% 24% 30% 27%

No products of my interest 23% 30% 25% 26% 33% 24% 19% 24% 30% 20% 27% 25%

Poor product quality 13% 14% 12% 16% 16% 10% 14% 14% 21% 12% 7% 14%

Don't know a catalog seller to contact 11% 15% 12% 12% 11% 14% 13% 16% 7% 12% 12% 13%

Not interested 6% 4% 6% 4% 1% 6% 8% 1% 6% 13% 4% 5%

Lack of time 1% 1% 1% 1% 0% 2% 1% 1% 0% 1% 1% 1%

Other 5% 2% 6% 2% 2% 1% 9% 4% 5% 8% 1% 5%

Total 199% 199% 200% 199% 199% 200% 199% 199% 200% 199% 200% 199%

Cases 330 169 290 209 157 182 160 165 110 86 138 499

* Based on those who have not bought

1% N/A N/A8%

13%

23%19% 20%

30%

48%

5%1%

5%13% 14%

25% 27%31%

36%43%

Other Lack of time Not interested Don't know acatalog seller

to contact

Poor productquality

No products ofmy interest

Do not trustcatalog sale

Never beencontacted by acatalog seller

Preference toshop in stores

ExpensiveProducts

What are the two main reasons for not buying products sold by catalog?

2016 2019

Products

54

Most of beauty and personal care products has been purchased in the city of El Alto

over the last 12 months

Beauty and Personal Care Products

Have you bought beauty and personal care

products over the last 12 months?

35% of customers have

bought beauty and

personal care

products over the last

12 months

Answers

SEL Gender Age City


18 a

25

26 a

40

41 a

65SCZ LPZ EAL CBBA

How many times have

you bought Cosmetics

& Personal Care

products from catalog

sellers over the last 12

months?

Mean 3 4 3 4 4 4 3 4 3 3 5 4

Median 2 3 2 3 3 3 2 3 2 2 3 3

Mode 1 2 2 1 2 2 1 2 2 2 3 2

How much do you

spend each time you

buy Cosmetics &

Personal Care

products from a

catalog seller?

Mean 165 189 177 176 181 180 164 198 148 158 204 176

Median 150 150 150 150 150 150 150 200 140 150 175 150

Mode 150 200 150 200 200 150 200 200 150 150 200 200

Average Frequency

over the last 12

months

4 times

Average Ticket

176 Bs

21%

24%

26%

29%

32%

35%

35%

37%

38%

41%

43%

44%

CBBA

Male

41 a 65

Low SEL

LPZ

Total

18 a 25

SCZ

26 a 40

Middle SEL

Female

EAL

Customer

55

Answers

SEL Gender Age City


18 a

25

26 a

40

41 a

65SCZ LPZ EAL CBBA

How many times

have you bought

Clothing &

Accessories from

catalog sellers over

the last 12 months?

Mean 2 3 3 2 3 2 3 2 3 3 3 3

Median 2 2 2 2 2 2 3 2 2 2 2 2

Mode 1 1 2 1 1 2 3 1 1 1 2 1

How much do you

spend each time

you buy Clothing &

Accessories from a

catalog seller?

Mean 252 325 292 287 263 312 270 276 263 241 380 289

Median 240 250 250 250 250 215 280 200 250 240 300 250

Mode 300 300 300 150 300 150 250 200 300 180 300 300

Most of clothing and accessories has been purchased by

medium SEL over the last 12 months.

Clothing and Accesories

In the last year, have you bought clothing,

underwear or accessories such as shoes and

purses from a catalog seller ?

10% of the customers

bought clothing

Average Frequency

over the last 12

months

3 times

Average Ticket

289 Bs

6%

8%

8%

9%

9%

10%

10%

10%

10%

11%

12%

12%

41 a 65

Low SEL

Male

LPZ

EAL

CBBA

Total

18 a 25

SCZ

Female

26 a 40

Middle SEL

Customer

56

Answers

SEL Gender Age City


18 a

25

26 a

40

41 a

65SCZ LPZ EAL CBBA

How many times

have you bought

Jewelry & bijouterie

from catalog seller

over the last 12

months?

Mean 5 2 6 2 5 2 3 6 1 2 3 3

Median 2 2 1 2 2 2 2 2 1 1 2 2

Mode 1 1 1 1 1 1 1 1 1 1 1 1

How much do you

spend each time

you buy Jewelry &

bijouterie from a

catalog seller ?

Mean 295 183 257 231 185 194 399 250 126 273 267 239

Median 150 150 150 150 150 120 180 150 115 150 150 150

Mode 150 150 150 150 150 120 150 150 150 150 50 150

Most of jewelry and bijouterie has been purchased by women over the last 12 months.

Jewelry and Costume Jewelry

Have you bought jewelry or bijouterie from a

catalog seller over the last 12 months?

9% of the customers

bought jewelry or

bijouterie over the

last 12 months Average Frequency

over the last 12

months

3 times

Average Ticket

239 Bs

5%

7%

7%

8%

8%

9%

10%

10%

10%

11%

12%

13%

Male

LPZ

41 a 65

CBBA

Low SEL

Total

SCZ

18 a 25

26 a 40

Middle SEL

EAL

Female

Customer

57

Answers

SEL Gender Age City


18 a

25

26 a

40

41 a

65SCZ LPZ EAL CBBA

How many times

have you bought

Wellness (Nutrition,

supplements…)

products from

catalog seller over

the last 12 months?

Mean 4 4 5 3 3 3 6 3 8 3 3 4

Median 2 2 2 2 2 2 2 2 4 2 1 2

Mode 1 1 1 1 1 1 2 1 4 1 1 1

How much do you

spend each time

you buy Wellness

(Nutrition,

supplements…)

products from a

catalog seller?

Mean 176 173 176 173 169 166 189 186 118 215 169 174

Median 150 160 140 170 200 160 130 160 90 135 180 150

Mode 200 200 200 200 200 100 100 100 20 120 200 200

Most of Nutrition Products and Supplements has been purchased by

medium SEL over the last 12 months.

Nutrition Products and Supplements

over the last 12 months, have you bought

nutrition products such as vitamins,

supplements or powders from a catalog seller ?

8% of Customers bought

nutrition products or

supplementsAverage Frequency

over the last 12

months

4 times

Average Ticket

174 Bs

6%

6%

7%

7%

7%

8%

8%

8%

8%

9%

11%

11%

Low SEL

EAL

CBBA

LPZ

Male

26 a 40

18 a 25

Total

41 a 65

Female

SCZ

Middle SEL

Customer

58

Answers

SEL Gender Age City


18 a

25

26 a

40

41 a

65SCZ LPZ EAL CBBA

How many times

have you bought

Household Goods

& Durables

products from

catalog seller over

the last 12 months?

Mean 3 3 3 3 3 2 2 3 2 3 3 3

Median 2 2 2 2 3 2 2 2 2 2 1 2

Mode 1 1 1 1 1 1 2 2 2 2 1 1

How much do you

spend each time

you buy Household

Goods & Durables

products from a

catalog seller?

Mean 231 266 293 213 188 211 328 241 219 297 230 248

Median 200 200 200 170 180 140 200 160 180 210 200 200

Mode 300 200 200 200 100 200 200 100 300 60 200 200

Most of Kitchen / Household items have been purchased in the city of

Santa Cruz over the last 12 months.

Kitchen and household items

In the last year, have you bought kitchen and

other household accessories from a catalog

seller ?

8% of Customers

bought kitchen or

household itemsAverage Frequency

over the last 12

months

3 times

Average Ticket

248 Bs

7%

7%

7%

7%

7%

7%

8%

8%

9%

10%

10%

10%

LPZ

CBBA

Low SEL

18 a 25

26 a 40

Male

EAL

Total

Female

Middle SEL

41 a 65

SCZ

Customer

Preference

60

43%

34%

22%

Store,supermarket orpharmacy

SalesPromoter

Both

66%

16%

18%


SalesPromoter

Both

64%

26%

10%


SalesPromoter

Both

72%

13%

15%


SalesPromoter

Both

17%

70%

13%


SalesPromoter

Both

Nutrition

Products and

Supplements

Clothing and

Accesories

Jewelry and bijouterie are the preferred products to buy through Catalog sellers.

Beauty and

Personal Care

Products

Jewelry and

Costume

Jewelry

Kitchen and

household

items

Where do you prefer to buy the following products?

61

Beauty and Personal Care are the most purchased products over the last 12 months.

They are purchased in stores, markets, supermarkets or pharmacies.

Where do you prefer to buy the following products?


Based on those who bought the products over the last 12 months

AnswersSEL Gender Age City


Cosmetics & Personal

Care

Store,supermarket or pharmacy 45% 41% 55% 37% 43% 40% 50% 52% 39% 40% 33% 43%

catalog seller 37% 30% 25% 39% 31% 35% 36% 35% 42% 28% 33% 34%

Both 17% 28% 20% 24% 26% 25% 14% 14% 19% 32% 33% 22%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 155 148 107 196 96 137 70 110 64 87 42 303



catalog seller 17% 16% 17% 16% 15% 19% 13% 19% 28% 6% 11% 16%

Both 14% 23% 20% 18% 26% 12% 25% 13% 17% 17% 32% 18%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 42 44 35 51 27 43 16 31 18 18 19 86


supplements…)


catalog seller 33% 24% 19% 35% 32% 30% 23% 42% 14% 9% 23% 26%

Both 3% 15% 6% 13% 14% 15% 0% 9% 14% 9% 8% 10%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 30 41 31 40 22 27 22 33 14 11 13 71

Household Goods &

Durables


catalog seller 19% 6% 13% 13% 11% 15% 11% 13% 23% 0% 15% 13%

Both 8% 23% 9% 20% 16% 19% 11% 13% 8% 25% 15% 15%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 37 35 32 40 19 26 27 30 13 16 13 72

Jewelry & bijouterie


catalog seller 77% 59% 61% 70% 73% 64% 71% 69% 83% 55% 75% 70%

Both 9% 19% 11% 15% 9% 18% 12% 8% 17% 23% 8% 13%

Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cases 35 37 18 54 22 33 17 26 12 22 12 72

Benefits

63

12% 11% 14% 8%

19% 16% 15%8%

41%28% 21%

18%

18%

26% 29%

36%

11% 18% 20%31%

Allows access to good qualityproducts at an affordable price

Makes the purchase of necessaryproducts more comfortable and easier

Produce extra income Encourages progress and improvessellers' life quality

2019

Strongly Disagree Disagree Uncertain Agree Strongly Agree

39%45%

55% 54%

29%

45%50%

67%

Allows access to good qualityproducts at an affordable price

Makes the purchase of necessaryproducts more comfortable and easier

Produce extra income Encourages progress and improvessellers' life quality

Comparative T2B

2016 2019

Customers believe that direct selling encourages progressand improves sellers’ life quality (67%),

an increase of 13% compared to the previous shot.

How do you think direct selling…?

Note: Top Two Box = I think Yes + Surely Yes

T2B 29% 45% 50% 67%

64

How do you think the direct selling…?

Customers believe that direct selling encourages progress, improves life quality (67%)

and brings extra income for sellers (50%).


AnswersSEL Gender Age City


Allows access to good quality

products at an affordable

price

Strongly Disagree 12% 12% 13% 11% 9% 10% 16% 14% 10% 8% 14% 12%

Disagree 21% 16% 18% 19% 21% 18% 18% 18% 21% 18% 19% 19%

Uncertain 43% 38% 44% 38% 43% 45% 34% 37% 43% 42% 46% 41%

Agree 15% 21% 18% 17% 18% 15% 22% 16% 16% 25% 17% 18%

Strongly Agree 9% 13% 7% 14% 9% 11% 10% 16% 11% 8% 5% 11%

T2B 24% 34% 25% 31% 27% 26% 32% 32% 27% 32% 21% 29%

Makes the purchase of

necessary products more

comfortable and easier


Disagree 18% 12% 16% 16% 14% 17% 16% 14% 15% 18% 17% 16%

Uncertain 29% 28% 29% 28% 31% 27% 29% 24% 33% 32% 30% 28%

Agree 26% 28% 27% 27% 31% 27% 23% 20% 30% 34% 27% 26%

Strongly Agree 15% 20% 16% 19% 17% 18% 16% 30% 12% 11% 11% 18%

T2B 41% 49% 43% 46% 48% 45% 39% 50% 42% 45% 37% 45%

Produce extra income


Disagree 15% 15% 15% 15% 13% 15% 17% 10% 14% 21% 19% 15%

Uncertain 24% 19% 22% 22% 28% 20% 19% 17% 24% 23% 27% 21%

Agree 29% 31% 30% 30% 29% 32% 28% 21% 40% 37% 28% 29%

Strongly Agree 17% 22% 18% 20% 17% 21% 18% 31% 17% 12% 11% 20%

T2B 46% 53% 47% 51% 46% 54% 46% 51% 57% 49% 38% 50%

Encourages the progress and

improves life quality of those

who are dedicated to direct

selling


Disagree 8% 7% 9% 7% 9% 6% 9% 5% 8% 12% 7% 8%

Uncertain 18% 20% 19% 18% 22% 17% 18% 13% 19% 19% 27% 18%

Agree 37% 37% 38% 36% 41% 38% 32% 26% 43% 46% 39% 36%

Strongly Agree 28% 30% 26% 32% 24% 31% 31% 45% 26% 21% 16% 31%

T2B 65% 67% 63% 69% 65% 69% 63% 71% 69% 67% 55% 67%

Cases 538 362 439 461 272 357 271 300 200 200 200 900

65

1%

2%

2%

3%

3%

3%

3%

4%

4%

4%

4%

6%

4%

6%

2%

6%

4%

4%

2%

5%

6%

4%

8%

6%

CBBA

LPZ

Male

26 a 40

41 a 65

Low SEL

EAL

Total

Middle SEL

18 a 25

Female

SCZ

Are you currently a directcatalog seller ?

2016 2019

7%

8%

11%

11%

11%

12%

13%

13%

14%

15%

16%

17%

6%

4%

6%

8%

7%

8%

7%

5%

6%

9%

9%

11%

CBBA

Male

Low SEL

LPZ

41 a 65

26 a 40

Total

EAL

18 a 25

Middle SEL

SCZ

Female

Have you ever been a direct catalog seller ?

2016 2019

9% of Customers were catalog seller sometime.

However, they are no longer involved in direct sales.

Direct catalog seller s

6%

1%

66

Customer Conclusions

45% of the customers have bought a catalog product sometime, 3% less compared to

2016; the greatest variations occur in Santa Cruz, with a decrease of 8% and an

increase of 17% in El Alto; the main demotivators that limit the purchase are the

prices of the products, the preference to shop in stores and not been contacted by a

seller. The lack of trust with catalog products is higher in La Paz and Cochabamba,

compared to other cities.

Beauty products are the most purchased category, this category has an average

ticket of 176 Bs, and a frequency of 4 times a year. The second category with the

highest purchase is clothing, with a higher average ticket, 289 Bs, but less frequency,

3 times a year. nutrition or supplements category has the lowest average ticket, but

together with the beauty products, they have the highest purchase frequency.

With the exception of jewelry and bijouterie, the other categories prefer to be bought

in stores, markets, supermarkets or pharmacies, and secondarily by sellers; in the city

of Santa Cruz nutritional supplements have a high purchase through sellers compared

to the other cities, followed by Cochabamba which shows a replicable opportunity in

the cities of La Paz and El Alto, as well as the other cities where the purchase is

greater through this channel.

67

Customer Conclusions

The perception that direct selling encourages progress and improves the sellers life

quality, this perception has improved 13% in relation to the previous shot, while the

perception of accessing quality products and accessible prices decreases by 10%.

When inquiring about whether he was a seller at any time, there is an increase of 6%

compared to the previous shot, one of the biggest increases is in the city of El Alto

and among those under 25 years old; but when inquiring it is a seller now, no high

differences are observed, which shows that the decision of being a catalog seller has

been spontaneous.

Interviewees in Santa Cruz have a better perception of catalog sales than the other

cities, women compared to men have a better perception; easier and more

comfortable purchase is better perceived by youngers than by the elderly, while the

perception of products quality is attributed more intensely to those over 40 years.

Direct selling companies

69

43%

43%

43%

29%

14%

0%

14%

Cosmetics & PersonalCare





Travel packages,vacations, lodging

Other

Companies

58% of companies

completed the

survey

Rubros

12%of the average income

goes to labour.

77%of sales are registered in

the cities of Santa Cruz, La

Paz, El Alto, and

Cochabamba

44%of sales are made

through the

multilevel channel

69%12% of staff mention

that they are active

57%Average turnover rate

of ASOEM staff

59%of orders are repeated

business or

repurchase

100%of the companies

recruited by other

sellers'

recommendation

46%of sellers buy

products for personal

use

0%of companies have a

customer loyalty

program

50%of companies

mentioned that they

have customers who

return products

70

El 77% of sales are made in the cities of Santa Cruz, La Paz, El Alto, and Cochabamba

Company Financials

85,71% revenue from direct sales of its products

26%22%16%8%10%

18%




supplements…)

Jewelry & BijouterieClothing & Accessories

Other

Breakdown of sales

by product type

39%

12%17%

9%

23%

Santa CruzLa PazCochabambaEl AltoOther Cities

Breakdown of sales

by city

Breakdown of sales by

compensation

structure

56%

42%

0%0%2%

Single levelMultilevel Retail EcomerceOther

Breakdown of sales

by sales method /

approach

46%32%

20%2%

Door to door selling / physicalcold calling at a consumer's

home or business

Party plan/ group selling/classes and demonstrations

Catalogue drops at a consumer’s home or business

Other

71

Operational costs are mainly the costs of goods sold.

Operational Expenses

Bs 27 MM

Average labor costs

mentioned in 2018..

12%

of the income that

companies have

allocated to labour.

Bs 95 MM

Total non-labour operational cost

in 2018.

72% of the companies mention

having full-time hired staff

besides direct sales.

Total non-labour

operational cost

45%

7%5%4%3%

36%

Cost of goods soldTransport andstorage companies

Banks, financeand insurance

companies

Utilities,communications and

postage

RentOther suppliers

72

96% of ASOEM companies' income is based on direct sales.

Financial expenses

96% of the income comes from direct selling

34.387.000 Bs average EBITDA of ASOEM

companies

106.047.900 Bs Total profit from direct

selling activities

The amount of

money

companies

donated to

charitable or

other causes in

2018-2019 is in

the range of Bs.

20.000 and Bs.

40.000 depending

on each

company's

possibility.

Donations

77% of taxes paid are on company tax, while

20% is on income tax

73

393,857 is the average number of customer orders by company.

59% of these orders are repeat business

Sales Force

71%

57%

43%43%

14%

Demographiccharacteristics of region

Sales teamAverage income ofregion

Target marketUp line

Reasons for the region

sales success

ASOEM companies turnover rate is 57% according to

the number of sellers they had at the beginning, at the

end and the number of recruited in the 2018 period

Active

staff69%

31%Active

Inactive

Commissions

for recruiting

Commission clarifications

-Sales Commissions are expressed in percentage

-Sellers get "benefits” on sales by their downline

-Directors earn commission on the sale67%

33%Yes

No

74

All the products companies sell are imported and offered by

direct sales and marketing.

Sales Force

17%

0%

17%

0%

50%

0%

50%

17% 17%

33% 33%

67%

January February March April May June July August September October November December

Best sales by month

On average, companies revenues in 2018-2019 vs 2017 have increased 2%, while costs

are higher by 0.59% and the number of sales forces increased by 4, 9%

83%

83%

67%

17%

17%

Introducing new products

Establishing relationships

Ease of entry

Low cost base

Provide job opportunity

Key advantages of direct selling Sales technique(s)

83%

67%

67%

67%

17%

Multilevel marketing / networkingmarketing

Party plan / group selling

Door to door selling / calling

Catalogue drops at a consumer'shome/business

Digital catalog

75

84% of companies would not vet ISPsfor references or CV’s

Sales Force

83%

67%

50%

17%

17%

0%

0%

Sales training

Sales campaigns

Customer support /complaints

Other training

Direct line

Compliance Training

Other

Support

What do you offer your customers that differentiates you from your competitors?

Which sales technique(s) do your ISPs employ? How do you support ISPs?

* ISP = Independent Sales People

Differentiation83%

67%

50%

33%

17%

17%

Quality products

Greater convenience

Value for money

Superior customer service

Uniqueness of products

Other

Contact

100%

33%

17%

17%

0%

Recruit by existing ISPs

Referrals

Direct approach from potential ISPs

Other

Employment agency

76

99% of current sellers are individual, not any company.

Half of the companies are looking for a specific group to recruit.

Sales Force Characteristics

Gender

Female

82%

Male18%

Age

Less than 258%

25-35 years33%

36–45 years37%

48–55 years16%

More tan 556%

Personal Use46%

Sale54%

Type of Purchase

Demography

East48%

West52%

77

Customers

None of the companies mentioned having a customer loyalty program

Do you have customers returned products

Do you have a formal complaint handling system

in place?

Complaint handling

system

100%

Yes

No

Returns

50%

50%

Yes

No

Customer groups

50%

49%

1%

0%

0%

Delivery of catalogs athome or business

Distributors (defined ascustomers who

purchase at wholesaleprices and on sell toend user customers)

Preferred customers(defined as customers

who purchase atwholesale prices but arenot permitted to on sell)

Non-ISPs

Other

Post-sale

50%

50%

25%

0%

Assess their salesexperience

Assess their likelihoodto purchase in the

future

Assess their likelihoodof participating as an

ISP

Other

78

Women under 45 who live in Santa Cruz is the main target for companies

Customers Characteristics

Gender

Female

79%

Male21%

Age

Less than 251%

25-35 years37%

36-45 years44%

46-55 years15%

More tan 55 years3%

Santa Cruz51%

La Paz12%

El Alto13%

Cochabamba11%

Other Cities13%

Demography

Target

Yes100%

Is this customer group specifically targeted?

79

Regulaciones

50% of the companies spend 180 full time days per year on compliance and other

regulatory issues across the firm, the other half does not have the time calculated

80% of the companies offer a money back or a customer satisfaction guarantee that

exceeds pre-established days of use

83% of the companies employ staff specifically to comply with regulatory issues

50% of the companies say that current regulations adversely affect their ability to service

any markets

What improvements could be made to the current regulatory environment?

-Administrative simplification and shorter times

-Laws must be clear and specific

-The government through the Sector Authority is looking for how to get money.

-The complexity of government regulations

-Evaluation staff restructuration

-Standardization of criteria

80

• Tax culture, sellers Ignore the norm.

• Informality, payment focus, tax, and regulatory issues.

• Fraud, many people confuse this industry with the

pyramids.

• Lack of training regarding the sales prices and

margins sellers can obtain.

• Smuggling and Informality of some non-established

companies

• Tax and labor regulations

• It is difficult to reach the end customer when the

promoter/entrepreneur/representative/seller is

involved

• Government regulations, the competition environment

is harmful

• The flexibility of schedules, additional income, no

academic training needed, quality products door to

door

• Low investment to start, the same opportunities for all

people

• Highly massive and horizontal channel that allows

selling products quickly.

• The greatest strength of direct sales is that a large

number of customers can be reached through a

trained Sales Force

• Segmentation and global trends. Entrepreneurship,

technology that makes the purchase and logistics of

deliveries easier

• Strengthening the guild

• Interact more with government entities to clarify tax laws

that allow growth

• look for better life quality, stimulating the economy

• Digitization

Threats:

Direct Selling Industry

Strengths: Weaknesses:

Opportunities:

81

Direct Selling Companies Conclusions

ASOEM companies mention that 39% of their sales are in the city of Santa Cruz.

Door-to-door is the main sales channel, followed by group sales, demonstrations; Due

to the type of structure, the single level predominates with 56%.

96% of the revenues come from direct sales; 69% of active personnel. According to

the number of sellers, they indicated having both at the beginning, at the end and the

number of recruited in the 2018 period. The turnover rate of the staff is 57%.

When consulting about its best area and why the performance is good, 71% mention

that it is because of the demographic characteristics of the region, the region has

more acceptance for the products offered; 57% mention the effort of the sales team.

May, July, and December are the best sales months, which means that the middle

and the end of the year's highest sales are achieved; The advantages of direct selling

are the ease of introducing new products, better customer relationships more facilities

to enter the market. The best-used techniques are multilevel, group sales, door to

door and catalogues.

82

Direct Selling Companies Conclusions

The main differentiation recognized by ASOEM companies versus their competitors is

the quality of the products, the convenience and the value delivered by the products.

Companies mention they support their sales forces through sales training, sales

campaigns and the complaints system or customer service. New sellers are mainly

recruited by current sellers.

The sales force is conformed mainly by women aged 25 and 45; 46% who buy

products for personal use. Half of the companies recognize that they have customers

who return products. Some companies have a post-sales experience system; The

perception of the customers they have is similar to the sales forces in gender and age

characteristics.

Regarding regulatory issues, companies agree that the current bureaucracy harms in

time and money terms since external staff is needed to comply with all the regulations

that the government requires. As for strengths, the flexibility of schedules, the low

investment necessary to participate and a large number of customers that can be

reached through a trained Sales Force. Such as weaknesses, lack of training is the

main argument to improve; as opportunities, segmentation, technology and the

strengthening of the guild. Informality remains the main threat to the sector, as well as

the regulations mentioned above.

83

Conclusiones

84

Final Conclusions

The study shows that in terms of customer profiles, both companies and resellers are

aligned with the data obtained from this segment, indicating that the alignment is

consistent with the correct target.

Sellers consider quality to be one of the most important detonators of purchase, as

well as prices compared to competing products. However reviewing past customer

results they consider the quality decline and price increase, as purchase

demotivators.

What is worth noting is that communication about the quality of the products offered

through direct sales is what is delivered. Companies, sellers and customers believe

that the products offered have the quality that was initially offered.

Regarding turnover staff analysis, in the chapter of companies it was observed a quite

high, (57%), which corroborates the chapter of the general public where there is an

increase in people who have ventured into direct sales sometime compared to 2016,

but there are no significant variations in the query on whether it continues to work as

a seller.

Sellers and direct sales companies, agree on the need for training. Sellers are the

face of the companies in front of customers since they (sellers) see that it is

necessary to boost sales.

85

Final Conclusions

Throughout the study, differences between motivators and demotivators are observed

mainly between cities, which can help the strategies of each company according to

sales projections, growth decisions to be made, as well as sellers who have a greater

predisposition of time and need to enter the in the industry.

As for satisfaction, although it is a low indicator, it also result of the country general

situation. Recession and uncertainties make people stop buying, or make sales

tactics more complicated, to be able to reach their goals.

The satisfaction scores of the study are related to the sale in general and do not

reflect the satisfaction with the companies, but it could be considered as a basis for

comparison with independent measurements.

One of the opportunities that are visualized is that many sellers manage an average

of 2 items, which would support alliances to develop strategies not only for

communication between ASOEM companies but also as cost minimization being more

effective in different areas, which would also support the suggested action of

strengthening the guild.

86


57%


17%


9%


supplements…)9%


8%

GDP Bolivia

USD 40

Billion

Direct

SellingUSD 395 MM

Direct selling

contributes

0,97% to Bolivian

GDP

GDP and annual spend

DIRECT SELLING CATEGORIES SCZ LPZ EAL CBBA OTHER BOLIVIA

Annual Dollars in Cosmetics & Personal Care 101.939.655 17.615.154 28.400.250 31.237.500 44.798.140 223.990.699

Annual Dollars in Clothing & Accessories 19.152.299 8.846.897 9.401.462 16.150.000 13.387.664 66.938.322

Annual Dollars in Household Goods & Durables 14.827.586 4.600.386 7.312.248 3.683.333 7.605.889 38.029.443

Annual Dollars in Wellness (Nutrition, supplements…) 16.310.345 4.334.979 3.525.548 3.315.000 6.871.468 34.357.341

Annual Dollars in Jewelry & Imitation jewelry 13.437.500 1.582.611 3.917.276 6.375.000 6.328.097 31.640.484

ANNUAL DOLLARS SPENT ON DIRECT SALE 165.667.385 36.980.028 52.556.784 60.760.833 78.991.258 394.956.288

87

62%

12%

9%

10%

8%



Household Goods& Durables

Wellness

Jewelry &Bijouterie

48%

24%

12%

12%

4%




Wellness


54%

18%

14%

7%

7%




Wellness


51%

27%

6%

5%

10%




Wellness


Santa Cruz(weight 42%)

La Paz(weight 9%)

El Alto(weight 13%)

Cochabamba(weight 15%)

Resto(weight 20%)

BOLIVIA

weight SCZ main categories weight LPZ main categories weight El Alto main categories weight CBA main categories

Annual spend

DIRECT SELLING CATEGORIES SCZ LPZ EAL CBBA OTHER BOLIVIA

Annual Dollars in Cosmetics & Personal Care 101.939.655 17.615.154 28.400.250 31.237.500 44.798.140 223.990.699

Annual Dollars in Clothing & Accessories 19.152.299 8.846.897 9.401.462 16.150.000 13.387.664 66.938.322

Annual Dollars in Household Goods & Durables 14.827.586 4.600.386 7.312.248 3.683.333 7.605.889 38.029.443

Annual Dollars in Wellness (Nutrition, supplements…) 16.310.345 4.334.979 3.525.548 3.315.000 6.871.468 34.357.341

Annual Dollars in Jewelry & Imitation jewelry 13.437.500 1.582.611 3.917.276 6.375.000 6.328.097 31.640.484

ANNUAL DOLLARS SPENT ON DIRECT SALE 165.667.385 36.980.028 52.556.784 60.760.833 78.991.258 394.956.288

SCZ42%

LPZ9%

EAL13%

CBBA16%

Other20%

w w w . c a p t u r a c o n s u l t i n g . c o m

Specialists in market research and opinión

studies

Bolivia - Santa Cruz - Av. San Martín - Comercial

El Chuubi - of. 22 - Phone / fax (591) (3) 3360606

Bolivia - La Paz - Av. 6 de Agosto 2700 - Torre

CADECO - of. 903 - Phone / fax (591) (2) 2124904

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