The direct selling channel showed a positive performance in 2018, in line with the recovery of trade and economic activity after the crisis. Traditionally, direct selling in Ukraine consisted of sales of beauty and home products, as well as jewellery.
Despite the advances in retailing technology, with constantly emerging new concepts and channels, direct selling has a persistent feature that determines the nature of the channel – its personal aspect. When making purchases of goods offered by direct selling companies, consumers are not just driven by price or product characteristics.
In 2018, direct selling was affected by the development of the internet. Some direct selling companies, especially Avon, actively increased their presence on the internet with advertising and marketing activities.
Avon maintained its lead in direct selling in Ukraine in 2018. The company can utilise its positioning as an affordable and purportedly high-quality brand, having a positive reputation in the market for more than two decades.
In 2018, many of the products sold by direct selling companies had lower prices than identical ones in foreign markets. This illustrates one of the advantages of direct selling brands, most of which operate as direct subsidiaries of multinational companies.
In certain product categories, direct selling companies account for an abnormally large market share. Sometimes, direct selling companies are the only merchants of beauty products available for people living in remote areas, where drugstores/parapharmacies and beauty specialist retailers are only just starting to develop and open outlets.
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This industry report originates from Passport, our Retailing market research database.