The 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.
- 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
Ian Crook, Managing Editor, Nicholas Hall’s Reports