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Learn moreMar 2020
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Direct selling continues to post stable growth, driven by rising demand for beauty and personal care products. The channel is dominated by strong beauty brands such as Avon, Oriflame and LR, which are driving sales, despite strong competitive pressure from e-commerce and store-based retailers.
Despite the growth of direct selling towards the end of the review period, the channel will need to adapt to the new reality of e-commerce if it is to remain competitive. Companies will need to offer their customers the opportunity of purchasing their products online through a proper e-shop solution with mobile device compatibility.
Despite a stagnating value share with regard to overall retailing, direct selling remains a popular channel that has so far managed to survive the onslaught of online retailers in the Czech Republic. The direct selling business environment has now mostly been cleansed of companies with questionable sales practices after well-publicised media campaigns in 2013.
Avon was recently taken over by Natura, creating the fourth largest cosmetics company in the world with a turnover of more than USD10 billion. The deal could impact the way Avon performs business by, for example, increasing the offer of non-beauty products in the future as the company’s sales are stagnating.
Zaren, a direct seller focusing on healthy sleeping products such as pillows and mattresses, recorded dynamic growth in the Czech Republic at the end of the review period. The company uses professional call centres and does not rely on selling agents for sales leads.
Direct sellers that focus on consumers holding parties and social events such as PartyLite are growing in popularity, although overall sales remain limited. PartyLite focuses on smaller crowds while offering scented candles and associated household furnishing.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Czech Republic 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 Czech Republic, 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.