Direct selling was characterised by sales of beauty and personal care over the review period due to the affordability of the products offered. In a situation of high unemployment, many Georgians, especially women, are attracted to become direct sales agents for beauty and personal care products.
Although direct selling is expected to continue to grow over the forecast period, current and constant value growth rates are likely to be lower than those of the review period. One of the obstacles to more rapid growth will be internet retailing.
The majority of products sold through direct selling and particularly beauty and personal care are positioned as economy or at the lower end of the medium price segment. This therefore normally leads to a better performance in periods when consumers are avoiding purchases of premium and high-end, medium-priced products, as happens when consumer confidence is low.
The competition between Avon Products and Oriflame Georgia has been evident for a number of years. One of the strategies Oriflame Georgia initiated in an attempt to catch up with its competitor was to widen its product portfolio by going beyond the traditional products for Georgian direct sellers, beauty and personal care, by offering a wide range of products in consumer health.
The value share of others remained low over the review period, despite some growth. The channel is not generating any significant interest among potential new players.
Avon Products, Oriflame Georgia and Faberlic Georgia dominated direct selling throughout the review period in Georgia. The clear leaders, Avon and Oriflame, enjoy strong brand awareness among consumers.
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