First Research US Industry Profile

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Direct Selling
SIC Codes: 5963
NAICS Codes: 454390
Last Quarterly Update: 4/1/2019
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.
Worldwide revenue for direct selling companies is about $183 billion, according to the World Federation of Direct Selling Associations (WFDSA). Markets expected to see strong growth include India, Latin America, and China, which according to Bloomberg is expected to surpass the US to become the world's biggest direct sales market within a few years. China is now Amway's top market, accounting for $2.6 billion in revenue, or about 30% of the company's worldwide sales.
The US direct selling industry includes about 20,000 establishments (single-location firms and units of multi-location firms), according to the US Census Bureau, with combined annual revenue of about $37 billion, according to the Direct Selling Association (DSA).
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.
Competition for the industry includes online, catalog, and brick-and-mortar retailers.
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 ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

12/24/2018
09/24/2018
06/25/2018
03/26/2018
12/18/2017
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06/12/2017
03/13/2017
12/05/2016
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05/30/2016
02/29/2016
11/23/2015
08/24/2015
05/25/2015
02/16/2015
11/17/2014
08/25/2014
06/02/2014
03/10/2014
12/09/2013
09/16/2013
06/24/2013
04/01/2013
01/07/2013
10/01/2012
07/16/2012
04/23/2012