Direct selling is expected to see sales grow over the forecast period, but it is expected to lose sales to internet retailing. Sales will continue to be driven by consumers’ appreciation of the individual attention provided by direct selling consultants.
Beauty and personal care is one of the largest categories within direct selling, and in 2018 it continued to perform well. This was largely thanks to the strength of LR Health & Beauty Systems GmbH and Mary Kay Cosmetics GmbH, as well as several other smaller players.
Homewares and home furnishings is expected to become the biggest category within direct selling by 2023, overtaking consumer appliances. For many women, homewares and home furnishings direct selling remains interesting as it is seen as a social event, where ideas can also be exchanged.
Vorwerk Deutschland Stiftung & Co KG continued to lead direct selling in 2018 but its growth came to an end in 2017, when the direct seller experienced a strong sales decline, after years of steady growth. However, according to Vorwerk, this slump in sales is only a consolidation which has occurred after years of booming growth.
The most successful players in direct selling are proactively addressing the challenge posed by soaring internet retailing sales in Germany, with a focus on offering online shopping as well. More and more direct sellers are also developing mobile apps so that they are more accessible to consumers.
In 2018, Tupperware Deutschland GmbH remained in second position; however, sales were affected by the introduction of its first online shop in Germany. This represents a radical change for Tupperware, but the company aims to facilitate access to the brand in Germany as well as increase access to the Tupperparty via the website.
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