Direct selling is set to struggle across the early forecast period, with rising inflation and low consumer spending confidence making direct selling a harder task. In addition, growth is also set to drop as it was heightened during the outbreak of COVID-19.
Health and beauty is the segment within direct selling with the largest share of total value sales. Direct selling companies within this section, such as Herbalife or Nu Skin, performed well during the outbreak of COVID-19 and are set to continue performing well over the forecast period.
Given the prevalence of social media for advertising, its use in direct selling is expected to become even more important over the forecast period. The increasingly advanced use of digital tools could be a major growth factor in direct selling in the coming years, for example, advanced video meeting systems, digital marketing, more advanced social media marketing and influencer marketing.
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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: 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 Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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