Eureka Forbes - The Direct Marketing Pioneer

The tiff had started in early 1999, when Electrolux announced its decision to walk out of the direct sales business worldover and, consequently, sell off its 40% stake in Eureka Forbes. Company observers stated that Eureka Forbes could find it difficult to succeed in the retail business without Electrolux's financial support and marketing expertise. The decisions to shift from direct selling to retailing and to enter the bottled water segment were being eyed with suspicion by analysts. Commenting on these decisions, analysts said that since Eureka Forbes was a relatively new player in the retail business and did not have much experience, it could have a tough future ahead.

Within a few years, the company became well-known for its innovative product range. In 1913, Eureka launched vacuum cleaners in six different models and offered various add-ons for cleaning floors (bare/carpeted), walls, upholstery, and crevices. The company adopted the direct marketing route from the very beginning and its sales personnel delivered personalized services to customers.

As vacuum cleaners became increasingly popular in the early 1900s, Eureka employed around 5000 salesmen and opened over 400 branches to cater to growing customer demand. Within a decade, Eureka had established itself as the market leader in the Vacuum Cleaner industry.