Knock knock. Who’s there? Nestlé!
Major brands are knocking at the door of poor to middle-income homes in developing countries as corporations strive to increase market share in Asia, Africa and South America. These direct sales represent a way to reach consumers who do not have access to grocery stores and supermarkets.
An article on the anti-globalization site Bella Ciao reports that Nestlé uses this method to sell yogurts and ice cream in Brazilian slums. In Paraisopolis, near Sao Paolo, the company recruited about 150 salespeople among local inhabitants last year and the campaign term brought in 1.3 million dollars. Nestlé managers gush about the example of a local cocaine dealer who has turned over a new leaf by hawking Nestlé treats to his neighbors, and the company announced the expansion of the program to other regions.
The Bella Ciao story alerted me to this phenomenon, but with a quick click around the Internet I discovered other examples of the practice. In south and east Asia, London-based Unilever sells “mini-packets” of food and hygiene products through door-to-door distribution, reported Business Finance Mag.com in March 2003. The company has even started to call itself a “multilocal multinational” in an effort to emphasize the new local approach to distribution — and to shed the negative image of multinationals.
Before condemning these methods outright, I would be interested in knowing the types of sales techniques these door-to-door sellers use. Could any Growers and Grocers readers shed more light on this topic?
Hmm… I’m from the south-east asian country of The Philippines. I’ve never heard of such a marketing scheme by the multinationals here. Also just came back from China recently from a short vacation. No one mentioned door-to-door selling just yet.