Beauty and personal care direct selling is by far the largest direct selling channel in Ecuador in value terms. It was particularly hard hit by the fallout of the pandemic in 2020, with demand for beauty and personal care products plummeting as consumers ceased socialising and spent most of their time at home due to fear of contracting COVID-19, remote working and lockdown measures.
In contrast to many retailing channels, consumer health direct selling received a boost from the outbreak of the pandemic in 2020, with current value growth accelerating as compared to 2019. This was mainly due to increased demand for vitamins and dietary supplements claiming immune-boosting properties among consumers seeking to strengthen their natural defences against COVID-19.
Independent distributors for leading direct selling brands in Ecuador tend to skew towards older age groups, with younger demographics – ie millennials and members of Generation Z – being less well represented in their networks. One consequence of this is that operators in this channel are traditionally heavily dependent on face-to-face interaction and physical sales.
Although macroeconomic conditions in Ecuador should continue to improve over the forecast period, recovery will be constrained by long-term structural challenges. Consequently, unemployment is expected to remain high, and many households will not see their incomes restored to pre-pandemic levels for some time.
While other direct selling looks set to be the most dynamic channel in current value growth terms over the forecast period, this is mainly because sales are emerging from a comparatively low base. Among larger channels, beauty and personal care direct selling is expected to be the strongest performer, followed by consumer health and apparel and footwear direct selling.
The pandemic has made direct selling companies more dependent on sales through e-commerce platforms, while also increasing consumer appreciation for the convenience and wider array of choices afforded by online shopping. Accordingly, over the forecast period players in this channel will continue to step up investment in their digital sales and marketing strategies.
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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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