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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 | Jul 2014

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
$49bn
Annual Growth 09-14
3.1%
Annual Growth 14-19
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Profit
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Employment
842,355
Businesses
709,772
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 Analysis Chapter

Direct selling, also known as multilevel marketing (MLM), has a unique position within the retail sector that was amplified during the economic downturn. Americans whose income levels fell or dissolved altogether during the recession were drawn to direct selling's entrepreneurial spirit. Instead of selling products in brick-and-mortar locations, they preferred selling products independently to friends and family or by hosting parties to present products. Furthermore, many US consumers were spending their shrinking discretionary dollars more carefully. For consumers, buying specialized, seemingly high-quality products from friends through direct selling was appealing, even during the recovery period... 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 and door-to-door. Direct sellers of food for immediate consumption and fuel are excluded from this industry.

Industry Products
Home and family care productsWellness productsPersonal 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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