In 2018, branding was a key factor for successfully operating a business in Israel. Consumers are exposed to many advertisements via mass and social media, and when they make purchases, they want to purchase brands that they have seen before and with which they are familiar.
Consumers’ decision-making process changed in recent years. Internet searches now help consumers to seek information, compare prices, check reviews and more.
As direct sellers recognised the changes in consumer behaviour, they modified their marketing approach, building websites and stores, whilst also promoting their products online. This created more familiarity and credibility for their own brands.
Nu Skin Israel was the leading player in direct selling in value terms in 2018, and continued to see share growth despite its declining sales. Within direct selling, it benefits from relatively high recognition.
Sunrider Israel, the second player in direct selling in value terms in 2018, also continued to see share growth despite its declining sales in 2018. It has local and global websites which allow consumers to buy online.
Over the forecast period, some players are expected to shut down their direct selling operations and exit the channel, shifting their activity to more effective channels such as internet retailing and even store-based retailing.
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