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 Key Buyers Chapter
The Direct Selling Companies industry is considered to have a low level of concentration, with the four largest players estimated to account for 8.5% of industry revenue in 2014. The industry is highly fragmented, characterized by a large number of individually owned businesses that are small in size. In 2014, about 73.4% of total establishments have fewer than five employees, while only 1.0% employ more than 100 workers.
In the five years to 2014, the industry is expected to largely retain its level of enterprises, with low-performing enterprises being replaced by eager new entrants. Because the industry requires minimal startup costs, many Americans who lost their jobs as a result of the recession have picked up direct selling as a means of obtaining supplemental income... purchase to read more