Direct selling is expected to record a further value sales decline in 2023 (at constant 2022 prices), as local consumers are likely to remain cautious in terms of non-essential expenditure due to predictions for further high inflation and rising prices of energy, food and fuel. The reduction in purchasing power as the growth of wages and pensions claimed by the authorities for 2023 will not cover the rise in inflation will influence direct selling’s performance, while the channel will also be impacted by competition from physical stores and e-commerce, especially leading players present in health and beauty.
Despite an easing of restrictions and greater mobility outside of the home, the changes to local consumers’ lifestyles and purchasing habits fuelled by the pandemic are likely to remain relevant over the forecast period. These include a stronger orientation towards e-commerce.
Direct selling is expected to remain structured around the main product category of health and beauty, where the active players have consolidated their positions due to their established and longstanding presence in the local market. International brands will continue to retain their undisputed dominance over the forecast period, leaving little space for new entries.
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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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