Dublin, Aug. 04, 2022 (GLOBE NEWSWIRE) -- The "Direct Selling Establishments Global Market Report 2022" report has been added to ResearchAndMarkets.com's offering.
The global direct selling establishments market is expected to grow from $449.79 billion in 2021 to $466.73 billion in 2022 at a compound annual growth rate (CAGR) of 3.8%. The market is expected to grow to $510.39 billion in 2026 at a compound annual growth rate (CAGR) of 2.3%.
Major players in the direct selling establishments market are Herbalife, Amway, Mary Kay Inc., Infinitus, Tupperware, Vorwerk, Natura, JoyMain, DXN, and Belcorp.
The direct selling establishments market consists of sales goods and services by entities (organizations, sole traders, and partnerships) 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 door-to-door sales.
This includes home delivery of the newspaper, home delivery of heating oil, liquefied petroleum (LP) gas, and other fuels, locker meat provisions, frozen food and freezer meal plan providers, coffee-break supplies providers, and bottled water or water softener services. Only goods and services traded between entities or sold to end consumers are included.
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 having the price range of premium, mid-range, and economy.
Asia Pacific was the largest region in the direct selling establishments market in 2021. North America was the second-largest region in the direct selling establishments market. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
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 reached $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 long term promotes self-employment and financial independence. ASSOCHAM paper also reveals 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.
Few companies such as Hindustan Unilever have closed its direct-to-home model, HUL Network, and re-launched its 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 a direct selling business is an emerging trend shaping the direct selling establishments market. AI in direct selling business is used to collect and analyze data about the customer, delivers highly intelligent automated customer service, and also helps to predict the re-stocking volume for product inventories.
For example, AI helps in personalized email marketing which is helpful for product recommendations and drip campaigns using the past behavioral 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.
The countries covered in the direct selling establishments market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
- Mary Kay Inc.
- Nu Skin
Key Topics Covered:
1. Executive Summary
2. Direct Selling Establishments Market Characteristics
3. Direct Selling Establishments Market Trends And Strategies
4. Impact Of COVID-19 On Direct Selling Establishments
5. Direct Selling Establishments Market Size And Growth
5.1. Global Direct Selling Establishments Historic Market, 2016-2021, $ Billion
5.1.1. Drivers Of The Market
5.1.2. Restraints On The Market
5.2. Global Direct Selling Establishments Forecast Market, 2021-2026F, 2031F, $ Billion
5.2.1. Drivers Of The Market
5.2.2. Restraints On the Market
6. Direct Selling Establishments Market Segmentation
6.1. Global Direct Selling Establishments Market, Segmentation By Type, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
- Single-Level Marketing
- Multi-Level Marketing
6.2. Global Direct Selling Establishments Market, Segmentation By Product, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
- Home and Family Care
- Personal Care
- Clothing & Accessories
- Leisure & Educational
- Other Products
6.3. Global Direct Selling Establishments Market, Segmentation By Price Range, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
7. Direct Selling Establishments Market Regional And Country Analysis
7.1. Global Direct Selling Establishments Market, Split By Region, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
7.2. Global Direct Selling Establishments Market, Split By Country, Historic and Forecast, 2016-2021, 2021-2026F, 2031F, $ Billion
For more information about this report visit https://www.researchandmarkets.com/r/hmhnhu
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