Over the past five years, the Direct Selling Companies industry has experienced slow growth as a result of some consumers tightening their purse strings due to uncertainty about the health and future of the Canadian economy. Fears of a housing bubble, household debt concerns and low oil prices have damaged consumer confidence, causing many buyers to cut back on discretionary purchases of industry goods. This has shifted discretionary spending dollars toward discount retailers, particularly online retailers, which are increasingly attracting customers due to convenience and pricing. While this external competition will hamper operators, the industry is still expected to continue its slow growth over the next five years as general economic conditions improve and operators shift attention to higher-end goods.
Operators in this industry sell a product or service from person to person, away from a fixed retail location. Retailers in the industry are known as independent consultants, distributors or representatives. Sales are usually done at home parties and workplaces, in street-corner carts or by door-to-door marketing. However, direct sellers of either fuel or food for immediate consumption are excluded from this industry.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.