Direct selling has experienced strong annual growth for many years. The channel saw double-digit current value growth every year of the review period, except 2018.
Digital transformation is happening both globally and locally. During the review period, direct selling companies in Indonesia started to transition from offline to online.
Direct selling has promising growth prospects in Indonesia. The growth in the Indonesian market will be supported by the large population, which attracts many direct selling companies, both local and foreign, to expand in Indonesia.
With the country’s large population, growing middle-income group and large millennial population, Indonesia is currently deemed an attractive market for direct selling companies – both local and global. During the review period, a new entrant, Atomy, was in the process of settling its licences to enter the Indonesian market.
During the review period, some movement was observed amongst players, especially the top five. Until 2016, Tupperware led direct selling, but its sales declined in Indonesia in the last three years of the review period, and the brand fell to sixth position in 2018.
Direct selling companies not only compete with companies within the channel itself, but also indirectly with companies in other channels, such as store-based retailers, especially in the current retail environment, which has not yet fully recovered. Whilst holidays give momentum to the sales of department stores and apparel and footwear specialist retailers, amongst others, these holidays are usually when direct selling companies experience a slowdown in sales.
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This industry report originates from Passport, our Retailing market research database.