With the current inflationary pressures, it is expected that more women will seek out additional sources of income, leading to a rise in smaller household businesses that may utilise the direct selling channel. While many may choose to use online platforms to increase their reach, there is still potential for direct selling to benefit from this trend of women entrepreneurship.
Despite the use of social media and online platforms, the importance of in-person interactions in Pakistani culture will likely continue to support the direct selling channel in the country. While leading brands such as Oriflame, Herbalife, Away and DXN International have a strong presence, there is a large segment of the direct selling sector that remains unaccounted for, consisting of smaller brands and local entrepreneurs using direct marketing and selling strategies.
Given the current economic instability, high inflation and increasing poverty rate in the country, it may be difficult for direct selling to be a sustainable channel in the long run due to lower earning margins for distributors. Additionally, the economic instability could pose a challenge for companies to establish a stable and long-term business.
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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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