Direct selling in the US is set to continue its current value decline over the forecast period, although the rate of decline is expected to slow. The channel is in a state of evolution, given the way in which e-commerce and social media have changed consumers’ shopping habits.
GLP-1 and other weight loss drugs are expected to continue to significantly disrupt sales of health and wellness products; historically an area of focus within the direct selling channel. Medifast, whose products have always blended a message of nutrition with weight loss, is one example of a direct seller whose topline sales have been hard hit by the growing demand for weight loss drugs.
Social commerce presents both opportunities and competition to the direct selling channel. While social media has become an acceptable communication tool for many direct selling companies in the US market, it has also presented challenges.
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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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