Direct Selling in France

2020 IMPACT

The COVID-19 pandemic has a mixed impact on direct selling in 2020

Direct selling registered a negative sales performance during 2020 and this is perhaps unsurprising given the disruption that the COVID-19 pandemic caused to the lifestyles of consumers over the course of the year. In particular the strict adherence to the principles of social distancing and home seclusion seen among the French population during the year made it difficult for direct selling agents to remain in direct personal contact with their customers, with many direct selling companies struggling due to the inability of their sales agents to make personal contact in order to display their wares and close sales.

Shift towards e-commerce and digital channels benefits direct selling to some degree

One of the most obvious trends to emerge from the COVID-19 pandemic in the French retailing industry during 2020 was the huge shifts seen towards e-commerce and digital engagement over the course of the year. This situation definitely had an influence on direct selling as many of the companies present in the channel were able to take full advantage of the dramatic shift towards digital channels and online sales during the year, with the increase seen in online direct selling cushioning the shock of falling sales via in-person consultations registered in the sales by meeting segment of the channel.

Low consumer confidence and pressure on incomes contribute to direct selling woes

Another factor negatively influencing direct selling during 2020 was the adverse economic environment that unfolded over the course of the year. With the COVID-19 pandemic having caused significant disruption to commercial activity in key sectors of the French economy, household incomes remained under pressure for much of the year as unemployment spiked and consumer confidence plummeted.

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