Direct selling will register marginal constant value growth over the forecast period, as e-commerce continues to steal value share. However, increasingly direct selling companies will use the online pace, as an added tool.
The global pandemic and changing purchasing habits of the local consumers were a major trigger for direct sellers to accelerate the implementation of their new digital strategies and focus on developing their e-commerce capabilities. These activities are set to intensify over the forecast period as leaders in the channel realise that in order to stay competitive, they must diverge from the traditional direct selling model and rely more on e-commerce, without compromising the prospects of successful collaboration with their sales representatives.
Avon and Oriflame are set to maintain their dominance within direct selling over the forecast period, thanks to their well-established presence and numerous selling agents in the country. Nonetheless, newly entered players have opportunities to steal share in the coming years as they too have launched popular products at highly competitive prices.
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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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