After seeing solid growth in 2020, direct selling continued to see a similar current value growth rate in 2021, as the COVID-19 outbreak proved beneficial for the channel. The main factor promoting consumer acceptance of direct selling was the quarantine lockdown that was imposed upon the population of Taiwan for several weeks during May-July of the year.
For essential personal care and hygiene product categories, such as toothbrushes, as well as consumer health products, sales increased via direct selling. Beauty categories such as colour cosmetics did not see such a good performance, however, due to lack of usage occasions and their non-essential nature.
Established in 2009, Atomy is a network marketing company that conducts direct selling in 15 different regions, including South Korea, with an annual revenue of USD1.3 billion in 2019 and 10 million global members as of 2020.
Despite the pandemic, the outlook for direct selling is still positive. An increasing number of consumers are opting to become direct selling representatives in response to the growing demand for various products via direct selling, such as food and drink, beauty and personal care products and consumer health products.
Direct selling companies will continue to compete with those in e-commerce. Direct selling involves mainly human social interaction, but players have been incorporating online elements, especially since the pandemic, whilst Taiwanese consumers have already adapted to such online elements.
Consumer health products account for the largest share of sales within direct selling in Taiwan. The reason for this is that in Taiwan, the older generation is still the main consumer group for direct selling.
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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: -one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or -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). The prime example of a one-to-one method is Avon. Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, financial services - are excluded.See All of Our Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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