Direct selling retail constant value sales (2021 prices) declined steeply during 2020 and recovered only partially in 2021: During the lockdown, sales agents were unable to meet with clients and potential clients in person, and even after these measures were eased. The fact that many consumers worked from home for an extended period and were socialising less also dampened demand for cosmetics.
Direct selling in Cameroon is dominated by beauty and personal care and consumer health, with NeoLife International LLC and Forever Living Products International LLC the leading players. Indeed, the pandemic has served to reinforce the dominance of beauty and personal care and consumer health in direct selling.
Even before COVID-19 struck, social media had been growing in importance in the marketing strategies of direct selling companies, but the pandemic reinforced this trend. Some successful agents have a considerable number of followers on such social media networks as Instagram, Facebook and YouTube, where they benefit from low-cost advertising and can reach a larger number of prospective clients.
As the threat posed by the pandemic continues to diminish, the rate of growth in direct selling retail constant value sales will gradually accelerate over the course of the review period. They will return to their pre-pandemic peak as early as 2023.
Spurred on by the pandemic, a growing number of direct sellers are likely to launch internet retail during the forecast period, blurring the line between direct selling and e-commerce. The prevalence of smartphone ownership will continue to rise in Cameroon, boosting internet penetration; the cost of internet access is falling; and local consumers are steadily becoming more confident with online shopping.
Beauty and personal care direct selling will face increased competition for physical stores. The number of supermarkets in Cameroon is growing, and more of these outlets are stocking non-grocery products, such as cosmetics and skin care.
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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: -one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or -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). The prime example of a one-to-one method is Avon. Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, financial services - are excluded.See All of Our Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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