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Direct Selling Companies in the US - Industry Market Research Report

  • August 2016
  • 34 pages
  • Ibisworld
Report ID: 198951

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Tough sell: Spending will rise, but competition from e-commerce threatens growth



Abstract

Direct Selling Companies in the US

While intense competition has negatively impacted the Direct Selling Companies industry in the five years to 2016, the industry has managed to achieve growth because of the strengthening economy. Increased competition from mass merchandisers, department stores and online retailers has threatened the industry by providing a wider selection of substitute products at low prices in a convenient one-stop location. However, because many industry operators have no physical locations, the price advantage competitors enjoy over many retailers is minimized, which has somewhat mitigated the loss of industry customers. Driven by improved consumer confidence and disposable income, consumer spending is anticipated to rise further in the five years to 2021. As a result, households are expected to ramp up purchasing.

Direct selling is the retailing of a product or service from one person to another, away from a fixed retail location. Providers are referred to as independent consultants, distributors or representatives. Sales are usually done via home parties, workplaces, trucks or wagons, street corner carts or door-to-door. Direct sellers of fuel and food for immediate consumption are excluded from this industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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