Article Review #4: - Trends in Non-store Retailing

Companies in the Non-store Retailing business sell retail products through methods other than a physical store front. This type of retail includes online auctions, catalog/mail order retailers, temporary stands, door-to-door sales, flea markets and in-home parties. Telephone solicitation (telemarketing) and TV infomercials are also included in this industry. Non store retailing is patronized to time conscious consumers and consumers who can't easily go to stores or compulsive buyers the 21st century shopper. Most if not all non-store retailers offer consumers the convenience of buying 24/7 and with delivery at location and time of their choice. Over the last several years, non-store sales are out growing sales in retail stores.
Network Marketing
In layman's terms, in the normal marketing system, the manufacturer supplies the products through the middlemen such as brokers, wholesalers and retailers. These middlemen add their establishment costs and their own margin of profit or commission on the price. This increases the price by approximately 45 per cent. The consumer therefore gets the product at atleast a 45 per cent markup from the manufacturer's price. In network marketing, these middle men are eliminated. A person is invited to join and become a member (also called Consultant) of the network marketing company. This person in turn invites many more people to join under him to form a group. These group members, in turn invite their acquaintance to join under them. This group is made to steadily grow and it can grow into thousands or tens of thousands, in the course of time, depending upon the enthusiasm with which the Consultant pursue the sponsorship of new Consultants. These Consultants make purchases of the products of the marketing company for self use and also for sale to other consumers. For