Avon, Amway, Faberlic, Herbalife, Mary Kay and Oriflame adopted new sales models in 2020, some in response to the COVID-19 pandemic, which delivered positive results for the most of them in 2020 and 2021. Some players looked to improve their internal communication systems, including the use of mobile apps, while the process of returning products was simplified.
Consumer awareness of direct selling continues to grow in Russia. The Russian direct selling association (RDSA) reported that 20 regions legalised self-employment in Russia in 2020.
The COVID-19 changed the operating environment for direct selling. Consumers migrated from beauty salons to the home with direct selling companies being forced to switch to the use of online video consultations.
Faberlic uses a business model which is based on building a network of consumers through the use of consultants. The company offers a wide variety of goods including apparel and footwear, cosmetics, fragrances, home care, homewares, beauty products and consumer health.
Direct selling is expected to see slow but steady growth in value terms over the forecast period. Direct selling players are actively investing in building their networks of consultants, as well as in developing new products and digital technologies.
With the rise of e-commerce it will become increasingly important that direct selling focuses on the personalisation of its offer, with this being a key point of differentiation. The use of sales consultants allows for the building of personal relationships between the consumer and the direct selling company, with it being the consultant’s personal responsibility to assure the customer of the quality of the purchased goods.
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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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