Despite the aggressive expansion of store-based retailers, direct selling will continue to benefit from the fact that this format is well-established in local culture. Filipinos trust recommendations from families and friends, with this business model serving to build relationships between buyers and sellers.
Beauty products, for example from Avon and Mary Kay, remained the most popular in the direct selling channel in 2018. Indeed, Avon continued to lead overall sales, while Mary Kay and Ever Bilena were two of the fastest growing players.
Direct selling is continuing to evolve as a business model as operators look to incorporate new technology and better adapt to changing consumer behaviour. For example, several direct sellers have also moved into online retailing.
Amway Philippines has opened its first Experience Centre in Makati, with its goal being to improve the shopping experience of its Amway Business Owners (ABOs) and customers. The company invested USD1.
Mary Kay Philippines appointed a new general manager in 2017 to help give its team a new boost of inspiration. The company has been carefully studying the Philippine market and repositioning its brand to address consumer needs, for example by offering more competitive prices and more opportunities to sellers.
Boardwalk, a local direct selling company, is also focusing on mobile technology to offer its customers an improved and more convenient shopping experience. The company is particularly targeting millennials and Filipinos with busy lifestyles who do not have the time to visit physical stores.
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This industry report originates from Passport, our Retailing market research database.