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Direct Selling Report Summary

SIC Codes: 5421
NAICS Codes: 454390
 

Direct Selling Industry Overview

Excerpt from Direct Selling Report

The US direct selling industry includes about 22,000 establishments (single-location companies or branches of multi-location companies) with combined annual revenue of about $30 billion. Major companies include Amway, Avon, Culligan International, Omaha Steaks, PartyLite, and Tupperware. Companies in the industry have more than 16 million direct sales representatives nationwide, according to the Direct Selling Association. The industry is fragmented; the 50 largest companies account for nearly 35 percent of industry revenue.

Competitive Landscape

Personal income and the latest trends drive demand for the diverse array of products sold by the direct selling industry. Profitability depends on the success of independent representatives who sell products to the public. Companies that have solid training programs, good marketing materials, and provide consistent support to representatives in the field may better prepare in-field staffers. Most of the field representatives are part-time, according to the DSA, with only 10 percent working full-time.

Products, Operations & Technology

Major products include home/family care/home durables (24 percent), wellness (23 percent), personal care (23 percent), services (19 percent), clothing and accessories (11 percent), and leisure/educational (3 percent), according to the DSA. The industry also includes coffee-break service providers, non-food street vendors, and temporary bazaars and flea markets.