Will Unilever Aviance follow the path of Electrolux LUX? LUX was a direct selling division of the giant Swedish home appliance manufacturer, Electrolux. LUX was established in the late 1960s and the company has activities in more than 35 countries. Lux sells high-end household appliances, such as vacuum cleaners, water purifiers, washing machines, and air cleaners directly to consumers.
In 1998 Electrolux divested LUX division to a group of investors with broad experience of direct selling. The owners are Reinhard von der Becke, formerly president of the direct selling group AMC International, Jonas af Jochnik, founder and co-owner of Oriflame International, and Philip Zepter, founder and owner of Zepter International.
The purchaser, Lux International AG, continues to sell products under the Lux brand name. Electrolux will be the main supplier.
A subsequent management buy-out of the LUX business in Malaysia changed the company’s name to Blondal.
Electrolux group re-enter the Malaysian market a few years back, selling the home appliances through conventional dealer outlets.
Blondal continues to sell it’s product under LUX Appliance.
What is Unilever’s long term commitment to Aviance? Will it persevere with all the regulatory obstacles and the constantly changing direct selling rules in Malaysia?
Which is a better channel of distribution? Direct selling or conventional retail outlets via stockist and wholesalers? Direct sellers like Cosway, Amway and a few established players are opening retail outlets and franchised stores. But the conventional channel marketers are moving into direct selling, albeit some variation. Aviance is a combination of retail franchised store plus direct selling. Hence, they called it Multi channel business.
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