Direct Selling
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 Coway (South Korea), Herbalife (Grand Cayman), Infinitus, and Perfect (both from China), Natura (Brazil), and Vorwerk (Germany).
Worldwide revenue for direct selling companies is about $763.8 billion in 2023, according to Globe News Wire. The US is the world's leading market for direct sales, followed by China, Korea, Germany, and Japan, according to Statista. China, South Korea, Hong Kong, and Malaysia, are some of Amway's top markets.
The US direct selling industry includes about 24,000 establishments (single-location firms and units of multi-location firms) with a combined annual revenue of $25 billion.
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 30% of industry revenue.
Competition for the industry includes online, catalog, and brick-and-mortar retailers.
Products, Operations & Technology
Major products include medicines, vitamins, minerals and supplements, which account for roughly 30% of the industry's revenue. Other products include hardware,
... plus:
Sales & Marketing
,
Finance & Regulation
,
Regional & International Issues
,
Human Resources
Also includes the following chapters:
Quarterly Industry Update
,
Industry Indicators
,
Business Challenges
,
Trends and Opportunities
,
Call Preparation Questions
,
Financial Information
,
Industry Forecast
,
Industry Websites
,
Glossary of Acronyms