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Direct Selling Companies in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Direct Selling Companies Market Research Report | NAICS 45439 | Jun 2015

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

IBISWorld’s Direct Selling Companies market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
There are no companies with a dominant market share
Industry Statistics & Market Size
Revenue
$43bn
Annual Growth 10-15
1.9%
Annual Growth 15-20
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Profit
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Employment
763,890
Businesses
678,743
Industry Analysis & Industry Trends

The lingering effects of the recession, including reduced consumer spending, negatively impacted the Direct Selling Companies industry early in the five years to 2015. However, revenue has gained ground since the economic downturn. Many Americans who lost their jobs in the wake of the recession established direct selling businesses as a means of income due to the relatively low start-up costs, thus boosting revenue growth. In the five years to 2020, the industry is expected to continue to grow, driven by improved consumer confidence and disposable income... purchase to read more

Industry Report - Industry Investment Chapter

The Direct Selling Companies industry has a low level of capital intensity. IBISWorld estimates that for every dollar spent on wages, industry operators will spend $0.07 in capital investment. This is partly due to the industry's heavy reliance on human labor rather than computerized systems. Generally, capital expenditure in retail industries includes fixtures and fittings, cash registers, point-of-sale (POS) systems, storage units and other equipment. The implementation of such systems simplifies labor tasks and minimizes the level of human error in processing purchases, which result in better stock control and cost efficiencies. However, most transactions in the industry occur on a small cash basis... purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Direct Selling Companies Industry?

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.

Industry Products
Home and family care productsWellness and personal care productsClothing and accessories Leisure and educational productsOther products and services
 
Industry Activities
Direct selling of bottled water Direct selling of coffee-break servicesDirect selling of cosmeticsDirect selling of frozen food and freezer plans Direct selling of home delivery newspaper routesDirect selling of party plan merchandisersDirect selling of produce


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