In Mexico, 5 out of 10 people who today do not have a permanent job consider that the main obstacles to entrepreneurship are not having a budget or financial advice, and the main disadvantages are not having a fixed salary, benefits and the risk of economic losses, according to the First National Survey of Entrepreneurship in Direct Sales.
The study was conducted by OdelaRoquette for Natura, a Brazilian multinational of hygiene and cosmetic products, which is the second largest direct sales company in the country.
We know that Mexico is a country of entrepreneurs, who are in constant search of opportunities. We went with OdelaRoquette to carry out a study in 8 key cities, whose purpose is to detect what obstacles, advantages and motivators Mexicans see in the direct sales sector to consider it an option or alternative for entrepreneurship.
Hans Werner, CEO of Natura Mexico.
Currently, hePeople stay in their formal jobs because of the feeling that they have it insured and have benefits. However, official data shows that, during the second quarter of 2022, although formal employment increased in Mexico, informality increased more, compared to the same period of the previous year.
According to the study, although traditional financial security is an anchor that is difficult to loosen, five out of 10 Mexicans consider that entrepreneurship means being your own boss and having your own business, and one in two mentions that achieving economic independence is the greatest motivator for starting a business. Similarly, six out of 10 consider that doing what they like, generating more than their fixed salary and contributing to society are the main advantages of entrepreneurship.
On the other hand, although 46% consider that an important incentive to engage in direct sales is the possibility of being their own bosses and offering quality products and services, they are reluctant to approach companies in the sector because they are still unaware of the model and the perception that they will become simple salespeople or that they may be victims of a shell company.
beauty goes to the head
And here, the numbers speak for themselves. According to data from the Mexican Association of Direct Sales (AMVD), more than 4.3 million people are engaged in direct sales and beauty is the category with the most participation, with 46% of industry salesso this bouquet became one of the best options for people looking for a source of resources.
Simply, the per capita consumption of the personal care sector went from 1,526 pesos in 2018 to 1,494 in 2020, and this 2022 is around 1,749 pesos, according to data from the National Chamber of the Personal and Home Care Industry (Canipec). ).
However, it is not just about wanting to undertake, access training or obtain an opportunity. The study showed that those who want to undertake must overcome discouragement that surprisingly their relatives favor more frequently, because they send them messages like they are going to fail, they are leaving something safe, they are going to regret it or they are not going to earn enough.
“Ignorance of the business can generate erroneous perceptions and tarnish its image. However, Natura bases its business model on a Network of Sustainable Relations that today impacts more than 320,000 people in the country, as a reliable entrepreneurial alternative, offering a development opportunity through consulting, based on a growth program that generates benefits for accumulated sales and for which they obtain differentiated discounts ranging from 30 to 40%”, said Gabriela Escamilla, Director of Relationships at Natura Mexico.
According to the survey, the ideal entrepreneur has certain personality traits and attitudes such as self-confidence, courage, proactivity, continuous search for learning, dedication to service, organization, resilience, patience, and kindness, among others. Therefore, he seeks to give much more than just a sale. He believes that having unique qualities within their project is the key to being more successful, and in that sense, thinking of a business model that supports their freedom/independence + security may be an attractive option for them.
“In my constant search for professional and personal growth, I saw in Natura the ideal business partner, not only because the products that are marketed are of high quality with differentials that make them attractive to consumers, but also because it is a proven business model , in which people receive support and comprehensive development, mentoring, recognition, incentives and prizes. Being the owner of my time management and my Network of Relationships, I have found a balance between financial security and labor freedom in the multilevel network,” said Sandra Campos, Natura Leader.
There are direct sales products such as personal care and beauty that bring wide profit margins. Since the pandemic, to date, the personal care sector registered a growth of 8.8% year-on-year, driven by the recovery in retail sales, the strengthening of the e-commerce channel and the growing trend of innovation in the sector.
Even categories such as fragrances and men’s care managed to recover the drop percentage of the previous period (2019-2020) and become important axes of the sector’s recovery, while the bath and shower categories added to skin care had a good performance. market performance. This together propelled the sector in 2021 to reach $206,166 million pesos in sales, breaking the barrier of two hundred million in sales for the first time, according to Canipec data.
It should be noted that in 2012, Natura’s Sustainable Relations Network model was recognized as an inclusive business by Business Call To Action (BCtA), a non-profit organization that seeks to support actions that accelerate the conquest of the Millennium Development Goals established by the UN. Natura’s model is aligned with two of them: eradicating extreme poverty and hunger, and promoting gender equality and women’s autonomy.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.