New York, Feb. 17, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Direct Selling Establishments Global Market Report 2023" - https://www.reportlinker.com/p06282511/?utm_source=GNW
Major players in the direct selling establishments market are Herbalife, Amway, Mary Kay Inc., Infinitus, Tupperware, Vorwerk, Natura, JoyMain, DXN, and Belcorp.
The global direct selling establishments market will grow from $688.45 billion in 2022 to $763.85 billion in 2023 at a compound annual growth rate (CAGR) of 11%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, surge in commodity prices, and supply chain disruptions, causing inflation across goods and services effecting many markets across the globe. The direct selling establishments market is expected to grow to $1,125.52 billion in 2027 at a CAGR of 10.2%.
The direct selling establishments market includes revenues earned by entities by providing services through one-to-one sales, online sales and party-plan sales.The market value includes the value of related goods sold by the service provider or included within the service offering.
Only goods and services traded between entities or sold to end consumers are included.
Direct selling establishments are businesses that are engaged in non-store retailing of merchandise, except e-commerce, mail-order, and vending machine sales. The entities operating in this industry go to the customer’s location rather than the customer coming to them, such as in door-to-door sales.
Asia Pacific was the largest region in the direct selling establishments market in 2022.North America was the second-largest region in the direct selling establishments market.
The regions covered in the direct selling establishments market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The main types of direct selling establishments are single-level marketing and multi-level marketing.Single-level marketing refers to direct sales carried out by sales associates.
The various products include wellness, services, home and family care, personal care, clothing and accessories, leisure and education, and other products in the price range of premium, mid-range, and economy.
The need for additional income opportunities in developing and underdeveloped countries has been a driving factor in the direct selling establishments market.According to The Associated Chambers of Commerce and Industry of India (Assocham), the direct selling industry will reach $2169 million by 2021 in India.
Direct selling could be a viable income source, even if someone wants to do it part-time.Direct selling, in the long term, promotes self-employment and financial independence.
The ASSOCHAM paper also reveals that the average sale of each participant in India is about $300 per year. The need for additional income opportunities is expected to drive the direct selling establishments market during the forecast period.
Increased demand for online shopping restrains the market for direct-selling establishments.E-commerce platforms offer more discounts on products compared to direct selling, encouraging consumers to switch from direct-selling establishments to online shopping portals.
Direct selling platforms are now changing the business model so that they can survive in the market.For instance, in India, direct selling platforms such as Amway, Oriflame, and Tupperware started selling products through e-commerce portals such as Flipkart, Snapdeal, eBay, and Amazon, which is a disruption in the direct-sales business model.
A few companies, such as Hindustan Unilever, have closed their direct-to-home model, HUL Network, and re-launched their Aviance beauty products and Ayush remedies on Amazon. According to Oberlo, by 2024, global online sales are expected to reach $6.4 trillion, and this is reducing the revenue of most direct-selling organizations.
Artificial Intelligence (AI) in the direct selling business is an emerging trend shaping the direct selling establishment market.AI in the direct selling business is used to collect and analyse data about the customer, deliver highly intelligent automated customer service, and also help predict the re-stocking volume for product inventories.
For example, AI helps in personalised email marketing, which is helpful for product recommendations and drip campaigns using the past behavioural data of the user.Chatbots are available at all hours and help in generating new leads and assisting customer service.
For instance, Ventaforce is AI-powered direct selling software that simplifies product categorization, lowers the risk of downtimes or failures, and increases savings from operations.
In January 2020, Natura & Co., a Brazilian personal care cosmetics company, acquired Avon Products, Inc. for an undisclosed amount. The acquisition has created the world’s fourth-largest pure-play beauty company. The acquisition will strengthen Natura’s position in more than 100 countries. The group will also have a good position in retail, with 3000 stores and an expanded digital presence. Avon was a British multi-level marketing company in the beauty, household, and personal care categories.
The countries covered in the direct selling establishments market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless otherwise specified).
The revenues for specified geography are consumption values – that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products
The direct selling establishments market research report is one of a series of new reports that provides direct selling establishments market statistics, including direct selling establishments industry global market size, regional shares, competitors with a direct selling establishments market share, detailed direct selling establishments market segments, market trends and opportunities, and any further data you may need to thrive in the direct selling establishments industry. This direct selling establishments market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
Read the full report: https://www.reportlinker.com/p06282511/?utm_source=GNW
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