Straight to the point: Strong external competition is causing industry revenue declines

Direct selling companies, or multi-level marketing companies, distribute a range of products and services through independent sales representatives. Direct selling companies compete with traditional retailers that maintain physical locations, as industry operators rely on sales representatives to sell and distribute their products to consumers. Sales representatives are usually independent contractors that are not employed by direct selling companies as they do not directly receive a wage. Instead, they primarily derive earnings through retaining a portion of revenue from any products sold. Direct selling companies tend to provide earning opportunities, combined with new and innovative products to attract and maintain their sales representatives...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 12-17
-4.0%
Forecast Growth 17-22
Profit
Employment
4,881
Businesses
250,563

Industry Threats & Opportunities

  • Strong competition in the online space will continue to put downward pressure on revenue over the next five years
  • Industry Report - Industry Locations Chapter

    The geographic spread of the industry is closely correlated with population, income distribution and general economic activity. The industry is therefore heavily concentrated across the eastern seaboard states, with New South Wales, Victoria, and Queensland accounting for 83.3% of establishments, and 77.0% of the population in 2016-17. Tasmania, the Northern Territory and the Australian Capital Territory, as the least populated states and territories, represent 4.9% of the population and 3.2% of direct sellers for the year.New South Wales and Victoria account for a disproportionately larger share of establishments compared with their population base. Thi...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 Consumer sentiment index and Demand from online shopping in the Direct Selling Companies industry impact industry performance..

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    What's in this report

    What is the Direct Selling Companies Industry?

    Industry firms sell products to consumers through independent salespeople without using fixed retail locations. Independent salespeople sell directly to consumers through person-to-person presentations, party-plan demonstrations and other methods. The industry excludes online sales that do not go through independent sales representatives.

    Industry Products
  • Cosmetics and personal-care products
  • Wellness products
  • Home-care and household goods
  • Clothing and accessories
  • Books, toys, stationery and audiovisual products
  • Food and beverages
  • Other consumer products and services
  • Industry Activities
  • Direct selling of cosmetics and personal-care products
  • Direct selling of wellness products
  • Direct selling of home-care and household goods
  • Direct selling of clothing and accessories
  • Direct selling of books, toys, stationery and audiovisual products
  • Direct selling of food and beverages
  • Direct selling of other consumer products and services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Demand from online shopping
  • National unemployment rate
  • Real household discretionary income

  • Current Performance
  • Industry structure
  • Digital shift
  • External competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Online onslaught
  • Traditional retail
  • Industry structure
  • 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
  • Consumers

  • Key Selling Industries
  • Cosmetics, Perfume and Toiletries Manufacturing
  • Plastic Pipe and Plastic Packaging Material Manufacturing
  • Soap and Cleaning Compound Manufacturing
  • Wholesale Trade

  • Products & Services
  • Wellness products
  • Home-care and household goods
  • Cosmetics and personal-care products
  • Clothing and accessories
  • Other consumer products and services
  • Books, toys, stationery and audiovisual products
  • Food and beverages
  • Chart: Direct Selling Companies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • 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
  • Distribution
  • Purchases
  • Wages
  • Depreciation, rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Direct Selling Companies

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

  • Industry Globalization
    Magnet Investments Pty Limited, Avon Products Pty Limited,
  • Table: Magnet Investments Pty Limited - financial performance
  • Table: Avon Products Pty Limited - financial performance

  • 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bricks-And-Mortar
  • A retailer that has a physical presence and storefront location.
  • E-Commerce
  • Transactions made via the internet.
  • Wellness Products
  • Includes nutritional and health supplements, vitamins, and weight loss and management products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Direct Selling Companies market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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