Direct selling companies have a good opportunity to support their sales through further investment in e-commerce, which is growing rapidly in Saudi Arabia. They also have opportunities to use social media platforms to attract and communicate with more consumers, with this offering the potential to reach a wider base of consumers, including younger consumers who may not be familiar with the direct selling model.
Bottled water will remain key to the growth and development of direct selling in Saudi Arabia and sales should benefit from population growth, urbanisation, and the increasing demand for larger packs of bulk bottled water. Bottled water is expected to continue dominating the direct selling channel in Saudi Arabia, with Al Manhal, Al Qassim and Makkah Water likely to remain the key players.
While demand for bottled water through direct selling is set to see healthy growth beauty and personal care direct selling – the second largest area of direct selling – is projected to see a decline in value terms (at constant 2022 prices). The category is facing mounting competition from a wide range of offline and online channels, including pharmacies, hypermarkets and department stores, as well as e-commerce platforms such as Noon.
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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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