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Direct Selling

Industry Overview
Business Challenges
Business Trends
Industry Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Web Links and Acronyms

Direct Selling

Brief Excerpt from Industry Overview Chapter:

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, Mary Kay, Schwan Food, and Tupperware, as well as Vorwerk (Germany), Natura (Brazil), Herbalife (Grand Cayman), and China's Infinitus, Perfect, and Tiens.

COMPETITIVE LANDSCAPE

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 (35% of sales); cosmetics and personal care (30%), household goods and durables (12%); and clothing and accessories (about 7%), according to the World Federation of Direct Selling Associations (WFDSA). 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.


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