About Direct Selling
Direct selling is a retail channel used by top global brands as well as by smaller companies to market products and services to consumers. The direct selling channel differs from wider retail in a significant way. It isn’t only about getting great products and services into consumers’ hands. It’s also an opportunity where entrepreneurial-minded can work independently to build a business with low start-up and overhead costs. Millions of Americans from every state, congressional district and community in the United States choose to become engaged in direct selling because they enjoy a company’s products or services and want to purchase them at a discount. Direct selling is unique among retail channels because of the way in which products and services are advertised to customers. Many B2B companies use direct selling to target and sell to their end customers. According to secondary it has been found that ~ 48% of companies grew year-over-year from 2018 to 2019.
Attributes | Details |
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Study Period | 2018-2028 |
Base Year | 2022 |
Unit | Value (USD Million) |
The companies are exploring the market by adopting mergers & acquisitions, expansions, investments, new service launches and collaborations as their preferred strategies. The players are exploring new geographies through expansions and acquisitions to avail a competitive advantage through combined synergies. Analyst at AMA Research estimates that European Vendors will contribute the maximum growth to Global Direct Selling market throughout the forecasted period. Established and emerging Vendors should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Amway (United States), Herbalife Nutrition (United States), Avon Products Inc. (United Kingdom), Vorwerk (Germany), Natura (Brazil), Coway (South Korea), Nu Skin (United States), Tupperware (United States), Oriflame (Switzerland), Ambit Energy (United States), Pola Inc. (Japan), Belcorp (Peru), PM International (Luxembourg), Jeunesse (United States), Telecom Plus (United Kingdom), USANA (United States), Yanbal (Peru), Medifast/OPTAVIA (United States), Arbonne (United States), Team National (United States) and Miki Corp. (Japan) are some of the key players that are part of study coverage. Additionally, the Vendors which are also part of the research coverage are Scentsy (United States), Plexus Worldwide (United States), MONAT Global (United States), Faberlic (Russia), Nature’s Sunshine (United States) and Others.
Segmentation Overview
AMA Research has segmented the market of Global Direct Selling market by Type (Single-Level Direct Sales, Host or Party-Plan Sales and Multi-Level Marketing), Application (Jewelry, Health and Wellness Products, Cosmetics & Personal care, Home Care Products, Clothing, Financial Service, Food & Beverages, Utility and Others) and Region.
On the basis of geography, the market of Direct Selling has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Sales Channel, the sub-segment i.e. Online will boost the Direct Selling market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Up Surging Demand due to Availability Online Distribution Channel
Market Growth Drivers:
Direct Selling Provides Additional Income Opportunities and Increasing Adoption of Internet Globally
Challenges:
Lack of Channel Regarding the Sales Channels
Restraints:
Growing Concern about the Counterfeit or Damaged Products
Opportunities:
Direct Selling Offers a Distribution Channel for Businesses with Innovative or Distinctive Products
Market Leaders and their expansionary development strategies
In November 2022, USANA Acquired Network Marketing Company Oola. Oola is an emerging direct-selling company that offers a personal development framework that helps individuals create a life of balance, growth, and purpose. and The acquisition of these emerging companies is part of USANA’s long-term growth strategy.
In December 2021, Faberlic launched U.S. Operations. Faberlic is a Europe-based direct-selling company with over 10 million customers and over 100,000 independent distributors in 44 countries. Already ranked among the top 30 direct-selling companies in the world, Faberlic is now poised to launch in the United States.
Key Target Audience
Direct Selling Service Providers, End-Use Industries, Research Firms, Government Bodies and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.