Direct selling is predicted to record declining value sales (at constant 2022 prices) over the forecast period, limited by its image of being an outdated form of retail. Attracting new players to direct selling and recruiting new sales consultants will be difficult as it is not considered fashionable, while consumers will continue to be attracted to the convenience of e-commerce, which also offers a wider range of products and competitive prices.
Direct sellers will use online channels to a higher degree over the forecast period, building customer relationships through social media. Social media offers huge potential, with players able to offer discounts and promotions through their pages, as well as demonstration videos, while some players have already added storefronts to their social media pages.
A significant share of direct selling sales amongst Swedes occurs amongst smaller groups of friends and family members. While this gives potential buyers an opportunity to test different products in the comfort of their homes, and allows sales consultants to develop trust and loyalty, it also means that sales typically remain low.
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Direct Selling
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 DefinitionsThis report originates from Passport, our Direct Selling research and analysis database.
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