Direct selling recorded stable current retail value growth in 2018, driven by the performance of the largest area, beauty and personal care. Despite the development of online sales, many Slovak consumers still value personal service, which favours direct selling.
Rising demand for healthy food and drinks, as well as for wellness products and organic cosmetics, was mirrored in direct selling in 2018, with companies introducing new wellness products or expanding their existing portfolios. Consumer groups that drive demand for healthier and ecological products among store-based retailers also actively purchase through direct selling, thus helping to fuel growth.
The dominant format in direct selling in Slovakia is person-to-person direct selling. Party plan direct selling is less popular and accounts for a much smaller proportion of direct selling value sales.
Avon Cosmetics and Oriflame Slovakia continued to lead the competitive landscape in 2018. Avon Cosmetics benefits from having the largest network of sales representatives and running large-scale charitable events, such as marches against cancer, to strengthen the positioning of the Avon brand.
The rise of internet retailing represents a major challenge to direct selling. In addition to the growing impact of internet retailing, traditional store-based retailers increasingly offer consumers a more personal and customised shopping experience.
While beauty and personal care direct selling is the largest area and grew its value sales in 2019, apparel and footwear, consumer appliances, homewares and home furnishing, as well as other smaller areas, accounted for only a marginal percentage of overall sales. All other areas, apart from beauty and personal care direct selling, represent only a small proportion of direct selling sales.
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This industry report originates from Passport, our Retailing market research database.