Beauty and personal care direct selling is largely dependent on personal interaction, with many consultants connecting with clients in their workplaces or at social gatherings and creating lasting relationships via continued product recommendations as consultants get to know their clients and their needs. This meant that office closures and orders to stay at home following the outbreak of COVID-19 limited their points of contact.
Consumer health direct selling has greatly benefited from heightened health awareness in Chile due to the pandemic. Local consumers searched for products to better prepare themselves across all areas of their health, not least in gaining some form of immunity from or minimising the effects of COVID-19 infection.
While Chile is a well-regarded market for direct sellers, and consumers are familiar with the brands present, 2021 saw the limited entrance of new players, with the channel continuing to be sustained by established names. Notably absent from the country is Mary Kay, the North American beauty and personal care player, which while having launched operations in neighbouring Peru and Argentina, had yet to begin operations in Chile at the end of the review period.
As liquidity has increased considerably based on the three consecutive pension fund withdrawals authorised at the end of 2020 and the beginning of 2021, many Chileans have looked to use this money to launch new businesses and generate new income opportunities. As such, direct selling companies are expected to continue to see increased interest from new sellers, helping them to expand their national presence, while new consumers will discover the products on offer.
Overall, direct selling is projected to record positive value growth (at constant 2021 prices) over the forecast period. However, the channel is expected to continue to lose ground to the e-commerce push in the country.
Direct selling, in a similar fashion to other channels, has increasingly gravitated towards adopting an omnichannel strategy. It is expected that e-commerce will continue to be a key driver of sales for the channel, supported by the ever-increasing recourse to omnichannel strategies and experience.
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Understand the latest market trends and future growth opportunities for the Direct Selling industry in Chile with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Direct Selling industry in Chile, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
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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