While a return to positive annual growth rates is expected from 2023, growth will be relatively modest for direct selling over the forecast period, particularly from 2025. Direct selling companies will continue to face the challenge of competing against with e-commerce offerings, particularly with e-commerce marketplaces dragging down prices.
Even before the emergence of COVID-19, direct selling companies had begun utilising digital channels to strengthen customer engagement and sales. However, during the pandemic, engagement though digital platforms intensified as companies tried to adapt to the situation and reach clients that they could not communicate with face to face.
The recovery of direct selling in the forecast period will be supported by the growing number of consumers interested in becoming a sales representative for a direct selling company. Amway Philippines LLC reported very strong growth in new Amway business owner (ABO) sign-ups when the pandemic hit the Philippines as consumers tried to find ways to augment their income amid the ongoing health crisis.
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Understand the latest market trends and future growth opportunities for the Direct Selling industry in Philippines with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Direct Selling
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 DefinitionsThis report originates from Passport, our Direct Selling research and analysis database.
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