Beauty and personal care and consumer health remained the most popular products sold via direct selling in 2018. One of the advantages of the direct selling channel is that sellers can have face-to-face conversations with customers.
In the past, purchasing through a direct seller meant purchasing something exclusive and the excitement of waiting for the products to arrive. With the advent of internet retailing, delivery times gradually reduced, and consumers looked for instant gratification more than in the past.
Direct selling is facing new challenges in the digital age. Competition is expected from other channels, particularly internet retailing, which has been seeing stronger growth in value sales, and will continue to do so over the forecast period.
Amway was the leading player in direct selling in 2018. It continues to heavily focus on India, especially for health and wellness products.
Herbalife International India’s product offerings in weight management and wellbeing and vitamins and dietary supplements are well-positioned to benefit from increasing consumer concern about weight and health. Moreover, millennials are increasingly adopting an active lifestyle, which provides more opportunity to introduce them to health and wellness products.
Some direct sellers have had a hard time transitioning to the digital realm, but others are using it to make themselves attractive to a new generation of hyperconnected consumers. Direct selling is largely is about leveraging communities, and communities are increasingly meeting online.
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This industry report originates from Passport, our Retailing market research database.