Executive Summary

Feb 2019
PROSPECTS
Direct sellers recovering from contraction in 2016

During 2016’s economic contraction, direct selling channel sales were highly impacted. Imported raw materials affected internal cost structures, and sales forces were reduced significantly in order to maintain companies’ margins.

Offer of additional categories could help accelerate growth

Most traditional lines of products related to direct selling such as health and beauty and even women’s apparel were affected by the general economic situation that included increasing prices and other difficulties during and after 2016 after a period of relatively significant growth. However, other lines of products such as baby and children’s clothes, vacuum cleaners, mattresses, air and water filters, etc.

Network marketing interesting as direct selling method but has yet to incorporate mass categories of products

Network marketing activity is an interesting and growing area, but only for consumer segments in Ecuador, as direct selling offers products such as health supplements, jewellery, organic food and others mainly directed towards higher-income consumers, so the nature of this business is focused on more specialised targets. Development in Ecuador has been slower but consistent in recent years; companies such as Nature’s Sunshine, Organo Gold and Herbalife have applied these collective multilevel strategies to extend operations, but still need wider promotion and to develop a favourable environment to consolidate strong teams of networkers.

COMPETITIVE LANDSCAPE
Yanbal Ecuador leads direct selling channel

Direct seller Yanbal Ecuador leads direct selling in Ecuador. The company owns a strong distribution structure through its sales representatives, and its brand is well known and recognised.

Social networks are becoming the main way to promote catalogue products

International and domestic companies are intensifying promotional and other marketing activities to catch the attention of a wider variety of consumers having traditionally focused primarily on women. Men are a key target for direct sellers’ promotions on social networks placing emphasis on male products, especially apparel, footwear, fragrances and sports goods.

Direct sellers place high importance on baby and child-specific products

Amongst direct sellers, the offer of baby and child-specific products is increasing. Current direct selling catalogues are constantly offering a wide variety of products, mainly bath and shower products, but also increasing their skin care and sun care offers.

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Direct Selling in Ecuador

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Overview

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

The Direct Selling in Ecuador 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 Ecuador?
  • How important is direct selling in Ecuador?
  • 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 Ecuador - Category analysis

HEADLINES

PROSPECTS

Direct sellers recovering from contraction in 2016
Offer of additional categories could help accelerate growth
Network marketing interesting as direct selling method but has yet to incorporate mass categories of products

COMPETITIVE LANDSCAPE

Yanbal Ecuador leads direct selling channel
Social networks are becoming the main way to promote catalogue products
Direct sellers place high importance on baby and child-specific products

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 Ecuador - Industry Overview

EXECUTIVE SUMMARY

Retailers are recovering sales after 2016 economic downfall
Store-based retailing captures most of the retailing sales
Online purchases increase at sustained pace in Ecuador
Sales and promotions continue to be commonly used to increase volume sales
Digital media improving retailers’ product promotion

OPERATING ENVIRONMENT

Informal retailing
Opening hours
Summary 1 Standard Opening Hours by Channel Type
Physical retail landscape
Cash and carry
Seasonality
Mother’s/Father’s Day
Summer Sales
Back to school
Black Friday
Christmas
Payments and delivery
Emerging business models

MARKET DATA

Table 7 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018
Table 8 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018
Table 9 Sales in Store-Based Retailing by Channel: Value 2013-2018
Table 10 Sales in Store-Based Retailing by Channel: % Value Growth 2013-2018
Table 11 Store-Based Retailing Outlets by Channel: Units 2013-2018
Table 12 Store-Based Retailing Outlets by Channel: % Unit Growth 2013-2018
Table 13 Sales in Non-Store Retailing by Channel: Value 2013-2018
Table 14 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018
Table 15 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2013-2018
Table 16 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 17 Sales in Non-Grocery Specialists by Channel: Value 2013-2018
Table 18 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018
Table 19 Non-Grocery Specialists Outlets by Channel: Units 2013-2018
Table 20 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018
Table 21 Retailing GBO Company Shares: % Value 2014-2018
Table 22 Retailing GBN Brand Shares: % Value 2015-2018
Table 23 Store-based Retailing GBO Company Shares: % Value 2014-2018
Table 24 Store-based Retailing GBN Brand Shares: % Value 2015-2018
Table 25 Store-based Retailing LBN Brand Shares: Outlets 2015-2018
Table 26 Non-Store Retailing GBO Company Shares: % Value 2014-2018
Table 27 Non-Store Retailing GBN Brand Shares: % Value 2015-2018
Table 28 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018
Table 29 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018
Table 30 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018
Table 31 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-2018
Table 32 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2018-2023
Table 33 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2018-2023
Table 34 Forecast Sales in Store-Based Retailing by Channel: Value 2018-2023
Table 35 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2018-2023
Table 36 Forecast Store-Based Retailing Outlets by Channel: Units 2018-2023
Table 37 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2018-2023
Table 38 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023
Table 39 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2018-2023
Table 40 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 41 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 42 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-2023
Table 43 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2018-2023
Table 44 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-2023
Table 45 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources