Direct selling is expected to continue to grow in the forecast period. This will depend on various factors, with economic conditions having greater relevance given the low annual economic growth and political uncertainty that seems set to continue in the coming years, which will make it difficult to create jobs and improve the incomes of families.
Beauty and personal care direct selling is expected to continue to grow significantly in the forecast period due to the strategies of the main beauty brands, which will continue to offer innovative products, remain active in advising consumers, and, above all, offer constant offers and promotions to remain attractive. This segment is also set to be driven by the efforts of beauty consultants themselves, for whom direct sales constitute an important means of income.
Online sales have provided an important development opportunity for direct selling, and it is expected that in the coming years the online channel will continue to attract both consultants and independent distributors, as well as final consumers. The development of online stores by the brands themselves is an important tool for sales, but so is the use of WhatsApp and payment methods involving digital wallets such as Yape.
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Direct Selling
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 DefinitionsThis report originates from Passport, our Direct Selling research and analysis database.
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