Direct selling is predicted to record stable growth over the forecast period, with an online approach to sales by consultants likely to continue to gain momentum and share of sales. Furthermore, following the rise in retail e-commerce as a consequence of the pandemic, an increasing number of consumers are likely to continue preferring to shop online as this channel is very convenient, with this trend likely to continue throughout the forecast period.
Herbalife Nutrition sales exceeded previous expectations during the pandemic as the brand, like other consumer health products, promoted relevant health and wellness trends. While it was able to significantly outperform consumer health direct selling as a whole in 2020, the company witnessed sales declines in 2021 and 2022 as lifestyles returned to normal, with Israelis making more frequent purchases of these items in health and beauty specialists or retail e-commerce.
During the height of the pandemic, beauty-related and skin care products were deemed to be less essential with sales of beauty and personal care direct selling contracting. This was exacerbated by limited to no opportunities for face-to-face sales.
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Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace, and other places away from permanent retail locations. Direct selling occurs in two primary ways: On a one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or on a party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose). Avon stands as a prime example of a direct seller using one-to-one selling, whereas Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, and financial services - are excluded.See All of Our Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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