Direct sellers is expected to benefit from rising energy prices as they will not operate their own retail stores in 2023. On the other hand, their competitors in the form of beauty specialists, for instance, will face rising operational costs due to their larger overheads.
The share of appliances and electronics direct selling is expected to increase as consumers resume investing in premium high-end products. Appliances and electronics direct selling sales will also benefit from rising inflation and with it associated price growth, which will enable companies to invest more in marketing and advertising.
Strengthening competition from retail e-commerce players will continue to negatively impact direct selling as a whole over the forecast period. Convenient shopping, faster delivery times, and free product samples for loyal customers, such as fragrances or skin care, will be increasingly utilised by retail e-commerce players.
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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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