Thank you to the chair and the committee for giving me this opportunity to speak today.
My name is Peter Maddox and I'm the president of the Direct Sellers Association of Canada. The DSA is a national association which was founded in 1954. We have over 70 company and supplier members across Canada. Our members include well-known and respected brands such as Mary Kay cosmetics, Pampered Chef cookware, PartyLite candles, Avon cosmetics, USANA Health Sciences and Cutco knives.
In Canada the direct selling sales channel annually accounts for an estimated $3.5 billion in retail sales, creates $1.31 billion in tax contributions and contributes $1.21 billion in personal revenue to the over one million Canadians who participate as independent sales consultants. Women make up 82% of independent sales consultants and 31% live in rural areas, compared to around 19% of the overall Canadian population.
Direct selling has deep roots in rural Canada. Just last week I was speaking with the general manager of Mary Kay Canada, who spoke proudly about how many of her consultants in rural Newfoundland have seen sales growth and earned vital income during the COVID-19 pandemic.
The success of our member companies and their independent sales consultants in rural Canada over many decades has been due in part to the ways that direct selling helps women overcome challenges created by living outside of large urban centres. These challenges have been often intensified by the COVID-19 pandemic and include, first, a lack of access to traditional bricks and mortar retail. When large retailers are not present in communities, direct sellers provide quick access to a wide range of products, as well as high levels of personal and local customer service.
Second, there is lack of employment and earning opportunities for women. While direct selling doesn't replace larger employers, it can provide vital additional income to assist in economic stability for individuals and families. This has been particularly relevant as the pandemic has created new challenges, such as home schooling.
Finally, women can face difficulties in maintaining strong networks due to geographic and social isolation. Products and services sold through the direct sales channel often require some level of personal demonstration, traditionally via sales party events, but more recently through virtual group events on Facebook Live and other digital platforms. This continues to connect people and proves healthy for mental and social well-being.
Due to the challenges faced by women in rural Canada and the opportunity that the direct selling channel presents, DSA Canada submits the following recommendations.
First is around broadband Internet access and digital literacy. The lack of reliable, affordable Internet has been on full display for many communities during the COVID-19 pandemic. Furthermore, many people have been thrust into a world reliant on being digitally savvy for the first time. Without universal access to high-speed communication technology and the requisite skills to make use of it, the direct selling businesses of thousands of independent sales consultants are negatively impacted. This in turn impacts the general economic well-being of rural communities.
The time for action is now. While the government has introduced a rapid response stream under the universal broadband fund, more dollars are needed now to rapidly connect Canadians and provide greater economic opportunities for those in underserved communities. The federal government should also explore new opportunities to provide digital literacy programs to ensure that Canadians, including those in rural and older populations, are able to actively participate in the digital revolution.
Second, we ask that the government continue to consider non-traditional employment relationships and earnings opportunities when developing policies and programs. During the initial rollout of the CERB, it quickly became obvious that it was developed with traditional employer-employee relationships in mind, without considering people like freelancers, seasonal workers and our own independent sales consultants. These roles are often filled by women and those in rural Canada. To the government's credit, after conversations with numerous groups, including ours, the CERB program was modified to overcome some of its early limitations.
We hope that in future, the development of support programs can be viewed through a lens that considers all Canadians and employment types, particularly those in non-traditional roles. DSA Canada has significant knowledge that can assist in understanding the full spectrum of Canadian workers.
The direct selling industry plays an important, but often unsung, role in the growth of the Canadian economy. We look forward to continuing to work with the federal government to ensure that this mutually beneficial relationship continues.
Thank you, and I welcome your questions.