Direct Selling in Slovenia

2020 IMPACT

Social distancing creates challenges for direct selling in 2020

Prior to the pandemic, direct selling experienced a prolonged period of contracting sales throughout the review period despite the favourable economic environment. Direct selling has been struggling due to pressure from other retailing formats, especially modern grocery retailers that are perceived as having a better reputation for quality, and overall approach to consumers.

Direct selling loses its competitive edge as consumers increasingly do their own research

Loyal customers are crucial to the success of direct selling as they have used their sales representatives for years and gotten to know them on a personal level. Despite the COVID-19 pandemic, it is likely that many loyal consumers have continued to order their favourite products using their trusted agents.

MST Plus doo continues to recover from its scandal thanks to the growing health and wellness trend

Direct selling in Slovenia remains relatively concentrated amongst dominant players in consumer healthcare and beauty and personal care. MST Plus doo will retain its lead in 2020, representing Herbalife Nutrition.

RECOVERY AND OPPORTUNITIES

Regardless of the pandemic, direct selling will become increasingly unpopular

Direct selling will continue to underperform over the duration of the forecast period. Regardless of the COVID-19 pandemic, this was to be expected as this trend has been witnessed over the duration of the review period.

Ongoing restrictions continue to impact direct sellers’ techniques

At the time of writing, it is difficult to estimate when the pandemic will come to an end in Slovenia, and further lockdowns and restrictions throughout 2020 cannot be overlooked. If this is the case, direct selling will continue to suffer from its selling environment to be undermined by social distancing and regulations.

E-commerce will continue to pose a threat to direct selling

Prior to the pandemic, e-commerce was having a strong impact on diminishing direct selling’ sales, hampering and this is set to continue over the forecast period. The convenience and time-saving aspect of e-commerce are two major factors that direct sellers do not yet compete with.