Direct selling is exploding. Direct sales the sale of products or services directly to consumers by independent sales representatives which eliminates middlemen such as wholesalers and retailers. According to data published by Euromonitor, the direct selling market is a major global retail channel worth US $134.2 billion in 2016 and is expected to experience a resurgence over the next few years to reach US $163.1 billion by 2020 with a CAGR of 4.9%.
World Federation of Direct Selling Associations elaborates that the United States is the largest direct selling market, valued at US$35.5 billion in 2016, while China takes the 2nd place at US$33.9 billion.
The success of direct selling can largely be attributed to the personalized service provided by sales representatives.
A wide variety of sectors use the direct selling approach. Coresight Research reported wellness is the largest product category in direct selling, generating US$63.5 billion in revenues in 2016, up 40.1% from 2013. Cosmetics and personal care follow as the second-largest product category, valued at US$48.3 billion in 2016. The success of direct selling in these two categories can largely be attributed to the personalized service provided by sales representatives.