Amidst high uncertainty, direct selling is expected to continue recording a downturn in constant sales over the forecast period. Facing high competition, particularly from specialists retailers and e-commerce, the channel is likely to post poor results across the next five years.
The digital revolution has changed the way consumers shop, bringing a growing dynamism to the market and challenging players to innovate, presenting value-added proposals. To boost sales, players in direct selling will continue to invest in hybrid models, embracing digitalisation and virtual reality to improve consumers' experience.
The competitive environment is set to remain relatively stable over the forecast period, with no new brands expected to enter the landscape. Due to its strong reputation, Vorwerk should grow in share, particularly as consumers reconquer purchasing power.
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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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