Direct selling is set to maintain current value growth throughout the forecast period in Brazil, with growth across most of the main categories. Unemployment levels are expected to fall marginally but remain significant in the country heading into the forecast period, which is likely to continue acting in favour of direct selling by ensuring a vast network of unemployed and underemployed citizens looking for extra sources of income in order to ease their weak financial circumstances.
Direct selling remained the single leading distribution channel for beauty and personal care products in Brazil at the end of the review period, even recording higher sales than beauty specialists. The culture of valuing interpersonal relationships will ensure that Brazilians continue to value purchasing such products from this channel, due to interaction and advice from sales consultants.
Leading players in direct selling can be expected to invest in developing the experiential component of direct selling, whereby consumers feel as though they are being provided with a bespoke service – something unique and more valuable than a mere product. The offer of a luxurious and memorable experience at an affordable price has the potential to encourage even hard-pressed consumers to continue spending money via direct selling.
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Direct Selling
Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace, and other places away from permanent retail locations. Direct selling occurs in two primary ways: On a one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or on a party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose). Avon stands as a prime example of a direct seller using one-to-one selling, whereas Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, and financial services - are excluded.
See All of Our DefinitionsThis report originates from Passport, our Direct Selling research and analysis database.
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