Direct selling is a model that has long been a core practice for many beauty brands, including household names like Avon, as consumer engagement with brands is particularly key in the industry, and the human context of direct selling can facilitate that. Indeed, as Euromintor notes, “direct selling’s greatest strength is its ability to tap into the power of communities.”
Euromonitor’s report notes that the methods and scope of direct selling are now evolving.
“The internet is changing how everyone communicates. This has an impact on the direct selling community. The most successful direct sellers will win by continuing to set down stakes in the most relevant communities, but they will also use a smart web presence to differentiate themselves from their competitors and bring direct selling into the 21st century.”
In the report, which can be downloaded here, Euromonitor explains various key elements of what direct selling is likely to move towards.
- ‘The internet is not a harbinger of doom for direct selling’
“The growth of the internet worldwide has not stopped direct sellers yet, nor is it predicted to, as they find their strengths emanating from the personable nature of their business model,” says the firm.
“Direct sellers may rely more on nations where the internet is not as robust, which is bound to change, but their continued success within specific communities, even in developed countries, suggests future potential.”
Embracing technology will be the way forward for the model, along with targeting specific markets.
- ‘For developing regions, purchasing power is as important as culture’
“It is important to remember that unmet demand is not just a function of economic development. In many of these countries, for example, deodorants do not sell well, as they are simply not seen as necessary,” the firm explains.
- ‘For developed regions, demand has shifted with standards’
“Direct sellers have been wracked with woes in developed markets. A greater sense of individualism, negative press and word-of-mouth, and a highly sophisticated retail environment where competition evolves at a breakneck pace have caused some to wonder if these markets are even worth pursuing to the same degree, considering the easier application of the model elsewhere.
“Taking a closer look at market shares, though, shows that significant growth can still be achieved if the right communities are targeted with the right products.”
The report also goes into detail on Euromonitor’s predictions for the communities that will be of interest to direct sellers, moving forward.