Direct selling registered a healthy rise in retail value sales growth during 2021. This was mostly due to the lockdown and economic uncertainty that led many Lithuanian consumers to limit their spending to essential necessities.
Prior to the pandemic, direct selling vendors were improving their digital space, offering both social media communication and e-commerce services to respond to consumers’ growing demands and to remain relevant. This transition to digital space helped minimise the impact of COVID-19 on direct selling in 2020.
One of direct selling’s strong points is the fact that it can adapt its assortment of products according to consumer needs. At the end of the review period, during the pandemic, many consumers’ foci was on health and wellness rather than beauty and personal care.
Digitalisation supported sales in direct selling at the end of the review period. Indeed, the pandemic emphasised the importance of social networks and other online tools in direct selling.
As most sales channels are switching to an omnichannel approach, direct selling vendors will also have to adapt and develop the art of online selling. Indeed, during the pandemic, many direct sellers held their tutorials and product presentations successfully online; vendors will therefore need to use such methods and become more creative in their selling methods.
The number of vendors in direct selling is anticipated to increase during the forecast period as rising unemployment is likely to attract some job seekers to direct selling. Furthermore, this channel is popular with many people for earning an additional income to their main jobs.
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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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