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Direct Selling Companies in the US - Industry Market Research Report

Direct Selling Companies in the US - Industry Market Research Report

  • June 2019
  • 35 pages
  • ID: 198951
  • Format: PDF
  • By Ibisworld

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Out of stock: The threat of e-commerce will stifle industry revenue growth

Abstract

Direct Selling Companies in the US
Operators in the Direct Selling Companies industry retail a range of products from one person to another away from a fixed retail location. While intense external competition has negatively affected the industry over the five years to 2019, the industry has managed to achieve growth as a result of the strengthening national 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. Direct selling companies have relatively low start-up costs; therefore, many Americans who are unemployed or underemployed establish direct selling businesses as a means of income. Driven by improved macroeconomic conditions and disposable income, consumer spending is anticipated to rise further over the five years to 2024. As a result, households are expected to ramp up purchasing. However, despite the appeal and relative ease of buying goods from knowledgeable direct sellers, consumers are expected to increasingly turn to online competitors for purchases.

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, 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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