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Learn moreMar 2019
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Direct selling experienced a prolonged period of contracting sales throughout the review period and continued to drop in 2018. The main drivers behind this performance are to be found in the shifting power from sellers to buyers, which were fostered by new technologies and information transparency.
A weak performance by direct selling is also attributable to growing competition, especially from health and beauty specialist retailers, drugstores, store-based discounters and increasingly, internet retailing. Furthermore, consumers are becoming sensitive to direct sales techniques and associate multi-level marketing with Ponzi schemes.
Most direct sellers experience a reverse correlation of performance with growing disposable incomes of their consumers. This indicates the need for a fundamental change in points of contact with consumers, which some health and beauty companies have already started to implement by shifting towards an e-commerce based operations and rethinking their distribution channels.
Direct selling in Slovenia remains relatively concentrated amongst dominant players in consumer healthcare and beauty and personal care. Herbalife Nutrition remained the leading brand in 2018 via the exclusive distributor MST Plus doo.
Amway ranked second in direct selling, continuing to gain value share in 2018, despite the corporate decision to close its offices in Slovenia and move the market coverage and management to the neighbouring Budapest office. This move did not result in too drastic a decline in value sales in 2018, which should mean that the overhead reduction did not disrupt the distribution network and marketing efficiency.
Ranked third was Avon Kozmetika doo, which was also able to gain value share in 2018, despite the general performance of the channel. This was due to its early adoption of mixed communication channels and publishing its catalogues online, as well as working on the relationship with its agents.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Slovenia with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Direct Selling industry in Slovenia, our research will save you time and money while empowering you to make informed, profitable decisions.
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This industry report originates from Passport, our Retailing market research database.
Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.