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 2014. 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 2019, the industry is expected to continue to grow, driven by improved consumer confidence and disposable income. Nevertheless, department stores, large-format stores and online retailers will likely continue to take market share away from the industry... 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 $0.06 in capital investment. This is partly due to the industry's heavy reliance on human labor rather than computerized systems. Over the past five years, capital intensity has declined slightly; in 2009, for every dollar spent on wages, industry operators spent about $0.07 in capital investment.
Generally, capital expenditure in retail industries includes fixtures and fittings, cash registers, point-of-sale (POS) systems, storage units and other equipment... purchase to read more