Omnichannel strategies are expected to continue to be developed by players in direct selling, and indeed must be understood as a key element and differentiator when it comes to conquering consumers’ preferences, especially those that lack a personal relationship with a company representative. The shift to omnichannel operations is being driven by companies, but also by consumers, who are increasingly familiar with and confident in buying online and picking-up or returning goods in-store, and find this convenient as life returns to closer to pre-pandemic standards.
While direct selling will have an important place in consumers’ preferences in the forecast period, more must be done by companies in the channel to tap into the demand for experiences, which are valued by consumers. Some players, such as Natura, are better-poised to increase their offering in this area, leveraging their good number of physical stores to help consumers learn more about their products, and for many consumers will become a regular store-based retailer, losing some of the direct selling tradition that had defined the brand.
While the sign-up of agents to direct selling companies has remained high, over the forecast period there are set to begin to be many up and downs, especially for those players that move away from the traditional format of catalogue-only selling. Potential sellers realise this, and in many cases will limit their exposure by remaining loyal to one or two brands, and not sign-up to more, as sometimes had happened.
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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: 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 Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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