There was a time when purchasing health functional foods typically involved a salesperson visiting your home. Multi-Level Marketing (MLM), a dominant force in the health functional food market, thrived on personalized services and strong customer trust. Now door-to-door sales channels, which were considered a symbol of personalized customer management, are seeking a new path in the digital age.

Shifting Consumer Behaviors and Challenges

Since the onset of COVID-19, many sales companies have shifted their focus to online channels, prompting multi-level marketing sales businesses to incorporate online platforms as part of their digital transformation efforts. This shift aimed to sustain growth amidst the challenges of face-to-face sales. However, the lack of effective integration strategies for operating both online and offline channels simultaneously has frequently led to inefficiencies, ultimately resulting in declines across both channels.

Additionally, multi-level marketing channels have seen a notable trend of customer attrition and an increasing reliance on loyal customers. Current loyal customers are now purchasing higher-priced products in bulk but less frequently, a shift that has led to a 1.6% decline in purchase frequency for door-to-door sales over the past year. Furthermore, the purchasing power of senior households, once a key demographic for the health functional food market, has fallen by over 10%, weakening a traditional strength of this sales channel.

Strategic Renewal for Sustainable Growth

On the other hand, single or two-person households have shown positive results in the door-to-door sales sector, with increases in total spending, purchase frequency, and average order size. However, these benefits are focused more on secondary categories such as single vitamins, bone and joint health, and skin health, rather than the core product range, highlighting the need for strategic adjustments.

Overcoming this downward trend requires a reevaluation of traditional methods and the implementation of innovative strategies. For example, strengthening brand loyalty and improving accessibility, as well as expanding product categories using white label supplements, can be effective. It is also important to find compelling points that make the price seem reasonable, while drawing in single or two-person households and preventing the departure of senior households and teenage households. This is a way to meet the diverse needs of consumers while quickly responding to new trends.

The challenges faced by the multi-level marketing present a meaningful opportunity for transformation. At Kolmar BNH, we aim to preserve the strengths of door-to-door sales—customer trust and personalized service—while offering a more diversified product lineup through private label supplements and white label supplements. These initiatives are designed to help the door-to-door sales channel reestablish itself as an attractive option for consumers. Our innovative solutions and strategic partnerships are the key to unlocking your success.