Direct selling in 2018 recorded another year of stable growth, driven by beauty and personal care products. The channel is dominated by strong beauty brands – Avon, Oriflame and LR – that are driving the channel despite strong competitive pressures from e-commerce and store-based retailers.
Despite 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 over the forecast period. 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 its stagnating value share of overall retailing, direct selling remained a popular channel that, as of 2018, had survived the onslaught of internet retailers in the Czech Republic. The channel’s viability must, however, be maintained through honest marketing practices of companies and sales agents.
Avon Cosmetics, the leading beauty and personal care brand in the Czech Republic, continued to lead direct selling during 2018. The company remained ahead of its main competitors – Oriflame Czech Republic and LR Health & Beauty Systems.
Mary Kay (Czech Republic) recorded another year of growth and increased its value share of direct selling in 2018. The company was ranked fourth among direct sellers in the Czech Republic, and is set to tackle the positions of LR Health & Beauty Systems and Oriflame Czech Republic over the forecast period.
One of the most popular direct selling brands in the Czech Republic, Zepter, continued struggling in 2018. A renowned seller of homewares, consumer health and cosmetics products, it recorded a strong sales decline over the review period.
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This industry report originates from Passport, our Retailing market research database.