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Country Report

Direct Selling in Canada

| Pages: 40

Price: US$900

About this Report

Executive Summary

TRENDS

  • In 2012, direct selling experienced modest current value growth of 2%, to reach C$1.2 billion in sales. The expansion of internet retailing in Canada was one of the principal reasons for the stagnant growth, coupled with continuous strong competition with a multitude of bricks-and-mortar retailers selling a wide variety of mass and premium beauty and personal care. Many direct selling companies continued to use the web to promote their products online, develop and improve their own websites to attract customers and to streamline product ordering service for sales force. However, as direct selling companies are largely supported by their sales force, they are reluctant to shift to internet retailing in order not to undermine sales opportunities of their door-to-door sales representatives. Nonetheless, it is worth noting that, according to the Direct Sellers Association of Canada and its statistics on the location of sales, nearly 11% of sales happened over the internet– the third most popular location after home (62%) and over the phone after face-to-face meeting (16%).

COMPETITIVE LANDSCAPE

  • Avon Canada Inc continued to lead direct selling in 2012. However, the retailer’s share declined marginally in 2012 on a slow sales growth. Mary Kay Canada Inc – the second largest player in the channel – faces a similar situation as customers appear less drawn to direct selling than in the past. Nonetheless, the two US-based retailers accounted for 28% combined value share through their lines of cosmetics, bath and body products, jewellery and apparel. Although the sales and shares of both retailers declined, Avon still has an impressive presence in Canadian beauty and personal care.

PROSPECTS

  • Over the forecast period, direct selling in Canada is expected to record only marginal growth in constant value terms to reach approximately C$1.2 billion in 2017. The channel will continue to face intense competition from internet retailing, highly developed store retailing and a shrinking client base. While the push for premium products on the part of some direct sellers provided a boost during the review period, it has not have a significant positive long-term impact, as the traditional customer base of direct selling companies comprises value-conscious consumers who expect competitive pricing from the products. In fact, many direct sellers are re-focusing their efforts on the mass segment to support growth and maintain their customer base. In addition, those in consumer healthcare direct selling – chiefly selling vitamins and dietary supplements – will continue to face a challenging operating environment, as Health Canada is looking to reinforce the compliance with natural health product regulations and ensure the withdrawal from Canada products not approved for marketing and sale locally (which is the case with a number of SKUs still offered by some direct sellers in Canada).

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Overview

Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Canada with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Direct Selling industry in Canada, our research will save you time and money while empowering you to make informed, profitable decisions.

The Direct Selling in Canada market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed market shares for international and locally-based retailers
  • Historic values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • Who are the leading retailers in Canada?
  • How important is direct selling in Canada?
  • How is the direct selling channel being affected by the growth of internet retailing?
  • What strategies are direct sellers employing to compete in a multi-channel environment?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Retailing market research database.

Table of Contents

Direct Selling in Canada - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

CHANNEL DATA

  • Table 1 Direct Selling by Channel: Value 2007-2012
  • Table 2 Direct Selling by Channel: % Value Growth 2007-2012
  • Table 3 Direct Selling Company Shares: % Value 2008-2012
  • Table 4 Direct Selling Brand Shares: % Value 2009-2012
  • Table 5 Direct Selling Forecasts by Channel: Value 2012-2017
  • Table 6 Direct Selling Forecasts by Channel: % Value Growth 2012-2017

Direct Selling in Canada - Company Profiles

Avon Canada Inc in Retailing (Canada)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 1 Avon Canada Inc: Key Facts

INTERNET STRATEGY

COMPANY BACKGROUND

COMPETITIVE POSITIONING

  • Summary 2 Avon Canada Inc: Competitive Position 2012

Retailing in Canada - Industry Context

EXECUTIVE SUMMARY

Slower than expected recovery inhibits overall pace of growth

Cross-border shopping increases with changes in duty exemption

Grocery retailers experiences better recovery overall

Continuing expansion of US-based retailers and online shopping options

Modest growth ahead

KEY TRENDS AND DEVELOPMENTS

Economic recovery remains somewhat weak

More internet retailing options are opening up to Canadians

New exemptions on duty-free goods encourage more cross-border shopping

Private label experiments with super premium segment

Target focuses on aggressive pre-opening strategies to secure success

M&A activity on the agenda as retailers seek growth

MARKET INDICATORS

  • Table 7 Employment in Retailing 2007-2012

MARKET DATA

  • Table 8 Sales in Retailing by Channel: Value 2007-2012
  • Table 9 Sales in Retailing by Channel: % Value Growth 2007-2012
  • Table 10 Sales in Store-Based Retailing by Channel: Value 2007-2012
  • Table 11 Store-Based Retailing Outlets by Channel: Units 2007-2012
  • Table 12 Sales in Store-Based Retailing by Channel: % Value Growth 2007-2012
  • Table 13 Store-Based Retailing Outlets by Channel: % Unit Growth 2007-2012
  • Table 14 Sales in Non-store Retailing by Channel: Value 2007-2012
  • Table 15 Sales in Non-store Retailing by Channel: % Value Growth 2007-2012
  • Table 16 Sales in Retailing by Grocery vs Non-Grocery: 2007-2012
  • Table 17 Sales in Non-Grocery Retailers by Channel: Value 2007-2012
  • Table 18 Non-Grocery Retailers Outlets by Channel: Units 2007-2012
  • Table 19 Sales in Non-Grocery Retailers by Channel: % Value Growth 2007-2012
  • Table 20 Non-Grocery Retailers Outlets by Channel: % Unit Growth 2007-2012
  • Table 21 Retailing Company Shares: % Value 2008-2012
  • Table 22 Retailing Brand Shares: % Value 2009-2012
  • Table 23 Store-Based Retailing Company Shares: % Value 2008-2012
  • Table 24 Store-Based Retailing Brand Shares: % Value 2009-2012
  • Table 25 Store-Based Retailing Brand Shares: Outlets 2009-2012
  • Table 26 Non-store Retailing Company Shares: % Value 2008-2012
  • Table 27 Non-store Retailing Brand Shares: % Value 2009-2012
  • Table 28 Non-Grocery Retailers Company Shares: % Value 2008-2012
  • Table 29 Non-Grocery Retailers Brand Shares: % Value 2009-2012
  • Table 30 Non-Grocery Retailers Brand Shares: Outlets 2009-2012
  • Table 31 Forecast Sales in Retailing by Channel: Value 2012-2017
  • Table 32 Forecast Sales in Retailing by Channel: % Value Growth 2012-2017
  • Table 33 Forecast Sales in Store-Based Retailing by Channel: Value 2012-2017
  • Table 34 Forecast Store-Based Retailing Outlets by Channel: Units 2012-2017
  • Table 35 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2012-2017
  • Table 36 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2012-2017
  • Table 37 Forecast Sales in Non-store Retailing by Channel: Value 2012-2017
  • Table 38 Forecast Sales in Non-store Retailing by Channel: % Value Growth 2012-2017
  • Table 39 Forecast Sales in Non-Grocery Retailers by Channel: Value 2012-2017
  • Table 40 Forecast Non-Grocery Retailers Outlets by Channel: Units 2012-2017
  • Table 41 Forecast Sales in Non-Grocery Retailers by Channel: % Value Growth 2012-2017
  • Table 42 Forecast Non-Grocery Retailers Outlets by Channel: % Unit Growth 2012-2017

APPENDIX

Operating environment

Cash and carry

  • Table 43 Cash and Carry: Sales Value 2007-2012
  • Table 44 Cash and Carry: Number of Outlets by National Brand Owner: 2009-2012

DEFINITIONS

SOURCES

  • Summary 3 Research Sources

Segmentation

This market research report includes the following:

  • Direct Selling
    • Beauty and Personal Care Direct Selling
    • Apparel Direct Selling
    • Consumer Electronics and Video Games Hardware Direct Selling
    • Consumer Healthcare Direct Selling
    • Consumer Appliances Direct Selling
    • Home Care Direct Selling
    • Home Improvement and Gardening Direct Selling
    • Furniture and Homewares Direct Selling
    • Media Products Direct Selling
    • Food and Drink Direct Selling
    • Toys and Games Direct Selling
    • Other Direct Selling

Statistics Included

For each category and subcategory you will receive the following data in Excel format:

From Passport

  • Market sizes
  • Company shares
  • Brand shares

Market size details:

  • Retail value retail selling price excl sales tax % growth
  • Retail value retail selling price excl sales tax local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price excl sales tax per capita local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price incl sales tax % growth
  • Retail value retail selling price incl sales tax local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price incl sales tax per capita local currency, USD, EUR, GBP, CHF, JPY

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