Direct selling continued to see some growth in 2021. The category drew some benefit from retail store closures early in the year due to a new wave of COVID-19, as well as consumers staying home more and avoiding visiting physical retail stores to curb the spread of the virus in the country.
Direct selling products sold through home parties such as Tupperware Parties struggled again early in 2021 due to the new wave of COVID-19 infections and consumers avoiding gatherings to prevent the spread of the virus. There was, however, some improvement later in the year as life returned to normal and home parties were possible again.
Despite the positive development in 2021, direct selling continued to be challenged by e-commerce and growth was lower than it could have been as more consumers moved from direct selling to e-commerce during the pandemic. E-commerce offers competitive pricing and the opportunity for price comparisons, the capacity to shop on-the-go via mobile devices and the opportunity for discretion and anonymity in sensitive product areas, such as consumer health.
The combination of direct selling with a strong online strategy will remain the most viable strategy for direct selling players over forecast period. Pre- and post-sales support from the direct seller is one of the main reasons why consumers like direct selling and combining this with the ease of online shopping may be the key to survival for direct selling players in the period to 2026.
Direct selling is expected to continue to be challenged by the strong growth in e-commerce, leading to declining sales over the forecast period. The development seems inevitable and direct selling players are likely to focus more on shifting to e-commerce solutions over the forecast period.
Consumer health direct selling is set to be one of the few categories showing a small positive development over the forecast period. The health and wellness trend should continue to motivate Danish consumers to purchase vitamins and supplements as they take a proactive and pre-emptive approach to their overall wellbeing.
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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 DefinitionsThis report originates from Passport, our Direct Selling research and analysis database.
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