Digital technology is becoming more important in direct selling. Direct selling companies are increasingly adopting new technologies, such as online platforms and social media, to reach and interact with customers.
Gaining new consumers is difficult for direct sellers, especially in times of economic uncertainty. Efforts to attract new customers by attendance at fairs, markets and in pop-up stores may help mitigate the ongoing shift towards e-commerce, but the category will continue to face challenges in the years ahead.
Thanks to ongoing consumer loyalty, particularly in relation to food, health and wellness and personal care, the competitive landscape is expected to remain relatively stable in the years ahead. However, those offering high-ticket items that can be found at comparable levels of quality for lower prices may register dwindling interest.
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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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