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

While intense competition has negatively affected the industry over the five years to 2017, 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. However, as consumer spending and per capita disposable income have grown during the period, more consumers have had the resources to purchase goods from direct sellers. This resource growth has slightly outweighed the flight of consumers to competitors, boosting revenue...read more.

Industry Statistics & Market Size
Revenue
$41bn
Annual Growth 12-17
0.4%
Forecast Growth 17-22
Profit
Employment
794,681
Businesses
712,693
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Increased competition from department stores and e-commerce has threatened the industry
  • Rising competition from external industries has posed a threat to direct sellers’ revenue
  • Mass merchandisers and online retailers are expected to continue to siphon market share
  • Industry Report - Industry Locations Chapter

    Similar to most retail industries in the United States, the geographic spread of direct selling establishments closely reflects the distribution of the US population. In theory, the greater the number of residents, the stronger demand will be for industry products. In 2017, IBISWorld expects that industry establishments will be concentrated in the Southeast, Western and Mid-Atlantic regions, which capture three of the highest population segments in the United States.However, while population concentration is important, a large number of other factors also affect the geographic spread of establishments. Household income, demographics, housing density and local shopping trends are a few factors that may drive consumer spending on industry products. The...purchase to read more.

    Additional Insights for the Direct Selling Companies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Direct Selling Companies Industry are

  • Receiving the benefit of word-of-mouth recommendations
  • Access to niche markets
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as External competition for the Direct Selling Companies industry and Per capita disposable income in the Direct Selling Companies industry impact industry performance..

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    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 products
  • Wellness and personal care products
  • Clothing and accessories
  • Leisure and educational products
  • Other products and services
  • Industry Activities
  • Direct selling of home goods
  • Direct selling of coffee-break services
  • Direct selling of cosmetics
  • Direct selling of vitamins and nutritional supplements
  • Direct selling of home delivery newspaper routes
  • Direct selling of party plan merchandisers
  • Direct selling of miscellaneous merchandise
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • External competition for the Direct Selling Companies industry
  • Per capita disposable income
  • Consumer spending
  • National unemployment rate
  • Number of adults aged 20 to 64

  • Current Performance
  • Retail market improves
  • External competition intensifies
  • Direct opportunities
  • Chart: Revenue Growth

  • Industry Outlook
  • The internet threat
  • Table: Direct Selling Companies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Direct Selling Companies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Management of Companies and Enterprises
  • Religious Organizations
  • Civic, Social & Youth Organizations
  • Wedding Services
  • Consumers

  • Key Selling Industries
  • Brand Name Pharmaceutical Manufacturing
  • Cosmetic & Beauty Products Manufacturing
  • Generic Pharmaceutical Manufacturing
  • Soap & Cleaning Compound Manufacturing
  • Wholesale Trade

  • Products & Services
  • Home and family care products
  • Wellness and personal care products
  • Other products and services
  • Leisure and educational products
  • Clothing and accessories
  • Chart: Direct Selling Companies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Household consumers, person-to-person
  • Household consumers, parties and other
  • Businesses for end use
  • Wholesalers for resale
  • Retailers for resale
  • Construction, special trade contractors and other
  • Chart: Major Market Segmentation for the Direct Selling Companies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Direct Selling Companies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Direct Selling Companies Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Direct Selling Companies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Direct Selling Companies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Percentage of services conducted online (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Big-Box Retailer
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
  • E-Tailer
  • A retailer that primarily sells goods and services via the internet. Many of these companies do not have brick-and-mortar locations.
  • Multilevel Marketing
  • A marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit.
  • Why buy this report?

    IBISWorld’s industry research report on Direct Selling Companies can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Direct Selling Companies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Direct Selling Companies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Direct Selling Companies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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