Global direct selling industry: A global powerhouse of growth worth $ 179.3 b

In a world recovering from the economic downturn of the pandemic, the direct selling industry remains a robust sales platform that reaches customers in over 170 countries. With a year-on-year increase of 5.8%, the direct selling industry has grown despite COVID-19 conditions, due to its swift changing of business mechanisms to online resources.

According to statistics of the Direct Selling Association, the Asia Pacific with a 44% share of the global direct selling segment leads the world with 46 million people engaged as direct sellers; markets in Japan, China, Korea, Malaysia, Taiwan, Thailand, Australia, Philippines and Indonesia consist of billion-dollar markets with tremendous growth potential, as industry experts point out.

In South Asia, India, with over five million direct sales personnel, leads – it’s pertinent to note that 60% of them are women. Across India, estimates show that the industry is experiencing growth with 800 entrepreneurs involving in this industry daily.

Analysts believe that the exponential growth of the direct selling industry is due to the way it empowers the direct sellers and promotes engagement. ASSOCHAM notes that in India for an example, the industry is expected to reach Rs. 15,930 crore this year.

Globally, the direct selling industry is recognised as an entity with an established presence across some of the world’s most advanced and highly regulated markets. The industry started in 1855 when the first Southwestern Company was established in the USA. The most famous and trusted direct selling company based in the USA is Avon, the cosmetic company that empowered women with economic independence; the Avon lady was known for her high-quality wares and her make up techniques. Today, Avon is ranked second in the world in the Direct Selling Network’s Global 100 registering a revenue of $ 5.57 billion as at 2018.

The US Direct Selling Association was formed in 1910 with pioneer members; the industry has shaped the way consumers view products easily accepted into their homes. Tupperware with their famous Tupperware parties where ladies would introduce Tupperware to their friends, grew into a dynamic entity with sole focus on direct selling.

Ranking high at No. 01 on the list of the biggest direct sellers is Amway, which pioneered the Multi-Level Compensation structure which has been emulated by many companies across the world. 

Powering the direct selling industry are some of the world’s best known and trusted names. Warren Buffet who purchased his direct selling company, Pampered Chef, has been a proponent of the industry along with several other well-known names such as the former US President Donald Trump and global entrepreneur Richard Branson.

The industry is overseen by the World Federation of Direct Selling Association (WFDA) which was established in 1978.

Research shows that despite economic downturns, the direct marketing industry has always registered a growth during such times; affirming its ability to empower individuals to reach out to their communities and in the process, grow their potential.