Companies in this industry sell a wide variety of products, primarily door-to-door or through other person-to-person contact. Major US companies include Amway, Avon, Culligan International, Mary Kay, Schwan Food, and Tupperware, as well as Vorwerk (Germany), Natura (Brazil), Herbalife (Grand Cayman), and China's Infinitus, Perfect, and Tiens.
Personal income and consumer preferences drive demand for the diverse array of products sold by the direct selling industry. Profitability for companies depends on the success of independent representatives who sell products to the public. Large companies enjoy economies of scale in marketing and in training and supporting representatives in the field. Small companies can compete effectively by offering popular products. The US industry is fragmented: the 50 largest companies account for about 40% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories include wellness (about one-third of sales); personal care, home and family care and durables, and personal care (each about 20%); and clothing and accessories (about 10%), according to the Direct Selling Association (DSA). Besides door-to-door sellers, the industry includes coffee-break service providers, street vendors of products other than food, and temporary bazaars and flea markets.