Tupperware recently announced its decision to end party plan sales in the UK, and to instead focus on other channels of distribution in that market. This news has resulted in press accounts of the decision that, to varying degrees, suggest that party plan direct selling is outmoded and is declining as a viable method of product distribution. Of course, we all know this is not the case, and, in fact, the opposite is true. DSA has responded specifically to an article published in the New York Times on January 24 and will respond to other media inquiries as necessary. To assist DSA member companies in responding to any questions you may receive from your field salesforce, employees or the media on this issue, please find below a short Q&A document that addresses the current state of party plan direct sales in the US and around the world. This should answer many of the general questions you might receive. While this issue most directly affects companies that use a party plan sales approach, all direct selling companies should be aware of the situation and be prepared to answer any questions that might be received.

Q&A

1. How is direct selling doing right now? A) Direct selling is stronger than ever, with revenues increasing at a rate of 7.5 percent annually during the past decade, an average of more than one percent faster than our retail counterparts. The growing popularity of the party plan is a major contributor to those results. Around the world, 44 million people are involved in direct selling, generating sales of more than $78 billion. 2. How do direct sales compare to retail sales? A) Since 1994, the average annual increase in direct sales has been 7.5 percent compared with 6.2 percent for retail sales. 3. Is the party plan still a reasonable way to work in direct selling? A) Sales through the party plan continue to increase, not only in companies that have used it for years, but also among new and growing companies. In 2002, most of the new applicants for DSA membership reported the party plan as a sales strategy used by the company. One reason for the increase in the party plan is that it's a great way to sell products that have many different benefits or require some explanation to use to their maximum benefit. More than half of all Americans have purchased products through direct selling, most of those through a party plan distribution.

Year	Party Plan sales	% of total DS sales	Direct Selling Industry
1996	$4.3 billion	20.7%	$20.8 billion
2002	$7.5 billion	28.1%	$26.7 billion

4. Are companies moving away from or toward party plan direct selling? A) In recent years there has been a great deal of confidence in party plan direct sales displayed by many corporate giants who have either acquired or launched party plan companies. These include Berkshire Hathaway, Sara Lee, AOL/Time Warner, Remington, CPAC, Blyth Inc., Regal Ware, The Body Shop, Antioch Company, The Virgin Companies and others. Just as it is not uncommon for traditional retailers and large corporations to explore direct selling as a distribution channel, it is also not uncommon for direct selling companies to explore supplementing and amplifying their core distribution channel by venturing into the retail market.