The strength of direct selling in Spain is built around the loyal base of customers and agents that well-established brands have built up in the market, with many of these consumers making recurring purchases of their favourite products. Using this customer loyalty as an advantage, more direct selling companies might consider following in the footsteps of Mary Kay by offering subscriptions on popular products.
As seen elsewhere in retail, taking an omnichannel approach will likely be a key focus of future developments within direct selling and something players must get on board with if they are not going to be left behind. As a result, digital sales and online promotional tools will likely be used more frequently over the forecast period, while face-to-face sales may be replaced by virtual meetings and conversations through WhatsApp and other online services such as Zoom.
The economic forecast is rather grim with economists agreeing that Spain is headed towards recession in 2024. As a result, at least during the early part of the forecast period, more businesses may be forced to close and there could be a potential increase in the country’s unemployment rate.
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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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