Executive Summary

Mar 2019
PROSPECTS
Convenience and brand-consciousness set to drive growth in direct selling

The direct selling channel in Pakistan primarily targets women; hence, the focus of retailers in the channel remains on beauty and personal care and household products. Direct selling in Pakistan is a retail channel which is well-suited for women who have limited access to brands via any other means, either due to mobility issues or lack of awareness of mass brands.

Regulatory measures to ensure safety and legitimacy will encourage new players

The direct selling channel in the country remained largely unregulated until recent years, when the Direct Selling Association became active in policy design and implementation to ensure the legitimacy of retailers and safeguard consumer interests. However, Ponzi schemes and fraudulent incidents have been prevalent, curbing investor confidence and consumer trust over the years.

Direct selling initiatives targeting women will drive sales

Leading direct selling companies in Pakistan have products mainly within health and beauty and personal care, which are primarily targeted towards women. Hence, brands such as Oriflame are increasingly investing in efforts to maximise their reach by employing brand ambassadors in female-centric places such as beauty salons.

COMPETITIVE LANDSCAPE
Trust issues and lengthy delivery times shift consumers to internet retailing

Direct selling remains a lucrative channel, especially in rural and semi-urban areas in the country, where the mobility of women is limited, and brands are less accessible. However, with growing internet and smartphone penetration, access to a wide product variety has grown tremendously.

Combating the competition by reducing margins

To counter the growing competition, direct sellers are increasingly inclined to reduce their margins to attract consumers. However, this has led to ununiform pricing of products and the narrowing incomes of sales ambassadors in the channel.

Direct selling in Pakistan is dominated by Oriflame Cosmetics Pakistan

The direct selling channel in Pakistan is still in its infancy, with a very small contribution to the overall retail landscape in Pakistan. With only a few retailers present in the channel, there is an untapped market for new players.

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Direct Selling in Pakistan

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Overview

Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Pakistan with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Direct Selling industry in Pakistan, our research will save you time and money while empowering you to make informed, profitable decisions.

The Direct Selling in Pakistan market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed market shares for international and locally-based retailers
  • Historic values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • Who are the leading retailers in Pakistan?
  • How important is direct selling in Pakistan?
  • How is the direct selling channel being affected by the growth of internet retailing?
  • What strategies are direct sellers employing to compete in a multi-channel environment?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Retailing market research database.

Direct Selling in Pakistan - Category analysis

HEADLINES

PROSPECTS

Convenience and brand-consciousness set to drive growth in direct selling
Regulatory measures to ensure safety and legitimacy will encourage new players
Direct selling initiatives targeting women will drive sales

COMPETITIVE LANDSCAPE

Trust issues and lengthy delivery times shift consumers to internet retailing
Combating the competition by reducing margins
Direct selling in Pakistan is dominated by Oriflame Cosmetics Pakistan

CHANNEL DATA

Table 1 Direct Selling by Category: Value 2013-2018
Table 2 Direct Selling by Category: % Value Growth 2013-2018
Table 3 Direct Selling GBO Company Shares: % Value 2014-2018
Table 4 Direct Selling GBN Brand Shares: % Value 2015-2018
Table 5 Direct Selling Forecasts by Category: Value 2018-2023
Table 6 Direct Selling Forecasts by Category: % Value Growth 2018-2023

Retailing in Pakistan - Industry Overview

EXECUTIVE SUMMARY

Increasing awareness and consumer spending drive growth
An omnichannel strategy is best for retailers
Changing preferences stimulate strong growth in modern grocery retailers
Improving regulations will encourage growth in internet retailing
An optimistic retail industry is expected to attract investors

OPERATING ENVIRONMENT

Informal retailing
Opening hours
Summary 1 Standard Opening Hours by Channel Type
Physical retail landscape
Cash and carry
Seasonality
Eid-al-Fitr
Ramadan
Black Friday
Payments and delivery
Emerging business models

MARKET DATA

Table 7 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018
Table 8 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018
Table 9 Sales in Store-Based Retailing by Channel: Value 2013-2018
Table 10 Sales in Store-Based Retailing by Channel: % Value Growth 2013-2018
Table 11 Store-Based Retailing Outlets by Channel: Units 2013-2018
Table 12 Store-Based Retailing Outlets by Channel: % Unit Growth 2013-2018
Table 13 Sales in Non-Store Retailing by Channel: Value 2013-2018
Table 14 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018
Table 15 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2013-2018
Table 16 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 17 Sales in Non-Grocery Specialists by Channel: Value 2013-2018
Table 18 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018
Table 19 Non-Grocery Specialists Outlets by Channel: Units 2013-2018
Table 20 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018
Table 21 Retailing GBO Company Shares: % Value 2014-2018
Table 22 Retailing GBN Brand Shares: % Value 2015-2018
Table 23 Store-based Retailing GBO Company Shares: % Value 2014-2018
Table 24 Store-based Retailing GBN Brand Shares: % Value 2015-2018
Table 25 Store-based Retailing LBN Brand Shares: Outlets 2015-2018
Table 26 Non-Store Retailing GBO Company Shares: % Value 2014-2018
Table 27 Non-Store Retailing GBN Brand Shares: % Value 2015-2018
Table 28 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018
Table 29 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018
Table 30 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018
Table 31 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-2018
Table 32 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2018-2023
Table 33 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2018-2023
Table 34 Forecast Sales in Store-Based Retailing by Channel: Value 2018-2023
Table 35 Forecast Sales in Store-Based Retailing by Channel: % Value Growth 2018-2023
Table 36 Forecast Store-Based Retailing Outlets by Channel: Units 2018-2023
Table 37 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2018-2023
Table 38 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023
Table 39 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2018-2023
Table 40 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 41 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 42 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-2023
Table 43 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2018-2023
Table 44 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-2023
Table 45 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2018-2023

SOURCES

Summary 2 Research Sources