Across the forecast period, the channel faces challenges from an improved in-store offer from grocery retailers and mixed retailers in terms of beauty and personal care products and a rising number of apparel and footwear specialist brand operators. In addition, the ongoing evolution of e-commerce.
On the back of expanding the operations of Herbalife, Amway, and Omnilife in Costa Rica, consumer health direct selling is expected to post the highest CAGR of the forecast period. This showcases consumers' increased interest in categories such as vitamins and supplements and dietary supplements offered by these companies.
Focused digital strategies will become more important for direct sellers over the forecast period as direct selling distributors come to resemble digital micro-influencers more closely than traditional direct selling reps. The popularity of influencers has expanded significantly in Costa Rica in recent years, and consumers will become more likely to shop from a rep who presents themselves publicly as an influencer than one who is more focused exclusively on discussing their company's products.
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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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