Over the review period, direct selling brands faced challenges pertaining to human capital and players striving to retain employees after the implementation of the expatriate dependent fees from July 2017. This resulted in many expatriates having to send their families back to their home countries to save on expenses.
Like many categories within direct selling, food and drink declined towards the end of the review period. However, this channel still relies on certain consumer segments; bottled water remains unaffected as most households rely on 5-gallon water bottles to be delivered directly to their homes.
With increasing competition with the booming e-commerce, and an overall expenditure slowdown in Saudi Arabia, popular direct selling beauty brands - Avon and Oriflame - resorted to advertising their products on social media platforms in an attempt to communicate their brand messages to consumers, widen their consumer bases and to reach out to different age groups. Nevertheless, the overall sales of beauty and personal care direct selling in Saudi Arabia exhibited a marginal decline in 2018, with a weak performance predicted for the forecast period.
Al Manhal Water Factory retained its leadership of direct selling in Saudi Arabia in 2018, continuing to gain value share. Its alliance with Nestlé SA allows it to distribute Nestlé Pure Life.
Saudi Arabia is one of the key markets for Avon in the Middle East, and Avon Products is one of the most prominent players in beauty and personal care direct selling, as a direct competitor to Oriflame.
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