Direct Sales: The Fastest-Growing Channel

ReportsheaderThe Direct Sales channel (specifically network marketing, where sales happen either one-on-one or through a party plan) is distinguished by offering face-to-face interaction with consumers – an attractive alternative to the retail channel, standard promotional tools and online interaction. Direct Selling is huge in many markets around the world, and is one of the fastest-growing channels in several countries. The product offering ranges from cosmetics & personal care to household goods, clothing and books, but OTC accounts for a sizeable proportion of sales – over 20% share of a global market valued in excess of $100bn.

Direct selling Piechart
Here are a selection of findings from our recent report, Direct Selling of OTC:

  • OTCs generate 22% of a global direct sales market worth $106bn
  • Asia-Pacific dominates the global OTC direct sales market, taking close to 60% of total revenues
  • OTC sales via the direct selling channel grew at nearly twice the rate of those via retail in 2012 (+7.1% vs +4.1%)
  • The Top 5 OTC direct sales markets are China, USA, Japan, Mexico and S Korea; 6 Asian markets are in the global Top 10
  • The competitive environment in the OTC direct sales market is fairly fragmented and, with the exception of Amway, no single player takes more than a 5% share; the Top 25 companies take just over half of global sales

To find out more about the report, please visit our website or contact

Best regards,


Ian Crook, Managing Editor, Nicholas Hall’s Reports

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