Executive Summary

Feb 2019
PROSPECTS
Hostile public reception makes it difficult for direct selling

During the so-called “golden period” for direct selling in Croatia (around 2004), the element that made the fast development possible was also the element that carried the eventual seeds of failure: multilevel marketing. Croatians are less prepared to work hard and persistently for years when they get promised fast success based merely on their position in the network.

End-user buying will probably take over

With the market looking relatively unattractive for direct selling representatives, technology could come to its aid as it offers the possibility of using the online component. Companies have accepted the weakness of the representative-selling-to-end-user concept and are increasingly switching to creating representatives among end-users, which means that they prevalently buy for themselves, plus buying some additional merchandise for friends and family.

Strong competition from other channels

Apart from being hostile to the MLM principle, Croatians like to “touch and see” the goods before buying. They do not trust buying something from a catalogue that they have not seen in person, and sales representatives cannot bring the entire product portfolio to a house-based presentation.

COMPETITIVE LANDSCAPE
Avon stable and optimistic

Avon Kozmetika is the traditional leader in direct selling, also being the most stable player in the channel as well. The company did not make the mistake of engaging in MLM but has always relied on the so-called “Avon Ladies”.

Herbalife second

Herbalife, as the runner-up in direct selling, achieved this position only at the beginning of the review period. Prior to that, it not only had to fight against the competition that used the MLM approach, but also against some regulatory troubles its parent company got itself into concerning its business practices, for which it reached a large financial settlement in 2016.

Other multinationals still lingering

Two globally renowned direct sellers have had to significantly reduce their physical presence in Croatia; Amway even closed its office in the country and is running its operations from one of the neighboring countries. It is interesting to see two direct selling players still keep their sale, though; Oriflame is slowly declining over the review period, while Amway even manages to recover from the lowest point in 2014.

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Direct Selling in Croatia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Croatia 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 Croatia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Direct Selling in Croatia 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 Croatia?
  • How important is direct selling in Croatia?
  • 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.

Direct Selling in Croatia - Category analysis

HEADLINES

PROSPECTS

Hostile public reception makes it difficult for direct selling
End-user buying will probably take over
Strong competition from other channels

COMPETITIVE LANDSCAPE

Avon stable and optimistic
Herbalife second
Other multinationals still lingering

CHANNEL DATA

Table 1 Direct Selling by Category: Value 2013-2018
Table 2 Direct Selling by Category: % Value Growth 2013-2018
Table 3 Direct Selling GBO Company Shares: % Value 2014-2018
Table 4 Direct Selling GBN Brand Shares: % Value 2015-2018
Table 5 Direct Selling Forecasts by Category: Value 2018-2023
Table 6 Direct Selling Forecasts by Category: % Value Growth 2018-2023

Retailing in Croatia - Industry Overview

EXECUTIVE SUMMARY

Sales are growing but Croatia is still far from the European average in terms of spending
Non-grocery grows faster than grocery
Locals strike back
Agrokor possibly out of trouble
A calming down of sales growth on the horizon

OPERATING ENVIRONMENT

Informal retailing
Opening hours
Summary 1 Standard Opening Hours by Channel Type
Physical retail landscape
Cash and carry
Table 7 Cash and Carry Sales: Value
Seasonality
Christmas
Summer end season sale
Payments and delivery
Emerging business models

MARKET DATA

Table 8 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018
Table 9 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018
Table 10 Sales in Store-Based Retailing by Channel: Value 2013-2018
Table 11 Sales in Store-Based Retailing by Channel: % Value Growth 2013-2018
Table 12 Store-Based Retailing Outlets by Channel: Units 2013-2018
Table 13 Store-Based Retailing Outlets by Channel: % Unit Growth 2013-2018
Table 14 Sales in Non-Store Retailing by Channel: Value 2013-2018
Table 15 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018
Table 16 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2013-2018
Table 17 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 18 Sales in Non-Grocery Specialists by Channel: Value 2013-2018
Table 19 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018
Table 20 Non-Grocery Specialists Outlets by Channel: Units 2013-2018
Table 21 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018
Table 22 Retailing GBO Company Shares: % Value 2014-2018
Table 23 Retailing GBN Brand Shares: % Value 2015-2018
Table 24 Store-based Retailing GBO Company Shares: % Value 2014-2018
Table 25 Store-based Retailing GBN Brand Shares: % Value 2015-2018
Table 26 Store-based Retailing LBN Brand Shares: Outlets 2015-2018
Table 27 Non-Store Retailing GBO Company Shares: % Value 2014-2018
Table 28 Non-Store Retailing GBN Brand Shares: % Value 2015-2018
Table 29 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018
Table 30 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018
Table 31 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018
Table 32 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-2018
Table 33 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2018-2023
Table 34 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2018-2023
Table 35 Forecast Sales in Store-Based Retailing by Channel: Value 2018-2023
Table 36 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2018-2023
Table 37 Forecast Store-Based Retailing Outlets by Channel: Units 2018-2023
Table 38 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2018-2023
Table 39 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023
Table 40 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2018-2023
Table 41 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 42 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 43 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-2023
Table 44 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2018-2023
Table 45 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-2023
Table 46 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources