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Direct Sales Expands Into India, Small Companies Compete in a Tough Market

The push towards globalization is not something that is focused just entirely in the Western culture. Communication and global focused strategies are taken for granted in many countries, but this is certainly not the case with Qnet. The company was initially founded in 1998 in Hong Kong, but the company has broken new ground to expand into Malaysia and India, among other countries. The company is present in roughly 100 countries throughout North Africa, the Middle East, and South East Asia.

What makes this company such a successful juggernaut in the Eastern world? The company’s industry provides some indication. Qnet works in the area of direct sales. They sell products in many industries, including apparel, fashion, nutrition, weight management, and others. Notably, these industries are all mainstays in the middle class. This is a class of people gaining prominence in the developing world.

But whenever trailblazers attempt to do something big and expansive, others will argue against it. There are claims that Qnet is somehow cheating in their relationship with India retailers. Zaheer Merchant responded to these claims with blunt affirmations. We didn’t do any wrong. We are a genuine e-commerce company present in the Indian market for 13 years, with mega plans.

Merchant was transparent about the regulations in the India market. He goes on to state that Qnet uis facing additional scrutiny not necessarily present with other competitors. He hopes that legislation could be set in place that avoids baseless claims from holding back business relationships that are healthy and practical for the region.

The company has being doing business for 16 years in various countries, and their vast expansion in such a short frame of time has led people to question their sincerity. But 16 years after its inception is not that long of a time considering its direct competitors. The industry of direct sales is notoriously difficult to compete in. High turnover keeps employees throughout the entire hierarchy chain constantly revolving. Small product price changes can dramatically impact the payment to those facilitating the sales. It is a system that seems intensely vulnerable from the onset. But Qnet’s long term success is a testament to their motivated and driven approach.

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