Tough sell: Spending will rise, but competition from e-commerce threatens growthAbstractDirect Selling Companies in the US
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. Over the five years to 2022, disposable income and consumer spending are anticipated to rise further, and households are expected to ramp up purchases of industry products. Nonetheless, the increased prevalence of online retailers will limit revenue growth.
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.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.