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Direct Selling Report Summary

SIC Codes: 5421
NAICS Codes: 454390
 

Direct Selling Industry Overview

Excerpt from Direct Selling Report

Companies in this industry sell a wide variety of products through primarily door-to-door, personal, or group or party contact. Major US companies include Amway, Avon, Culligan International, PartyLite, and Tupperware.

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 Direct Selling Association; only about 10 percent work full-time. The industry is fragmented; the 50 largest companies account for nearly 35 percent of industry revenue.

Products, Operations & Technology

Major product categories include wellness (24 percent), home/family care/home durables (23 percent), services (20 percent), personal care (18 percent), clothing and accessories (12 percent), and leisure/educational (2 percent), according to the Direct Selling Association (DSA). The industry also includes coffee-break service providers, street vendors of products other than food, and temporary bazaars and flea markets.