Direct Selling in 2020: Industry Overview and Outlook
Direct selling is a retail distribution channel where a company sells directly to the consumer, outside of a traditional brick-and-mortar retail setting. In 2019, the global direct selling industry was worth approximately $180 billion, with over 116 million people involved in direct selling worldwide. With the ongoing pandemic, there have been significant changes in this industry. This article will provide an overview and outlook of direct selling in 2020.
Industry Overview
The direct selling industry has seen a significant shift towards online selling and virtual tools since the pandemic outbreak. Many companies have been switching to online platforms to meet the ever-increasing customer demands. Social media platforms, such as Facebook and Instagram, have become excellent places for direct sellers to showcase their products, connect with customers, and grow their businesses.
Direct selling focuses on personal relationships, thus, as a result of social distancing measures, personalized messaging, and customer service has become even more crucial in direct selling. The industry’s flexibility means direct sellers can adjust quickly to changing conditions, as they are self-employed and can earn income based on their own efforts.
Another trending aspect of direct selling is that people are more concerned about their health and wellness. With so many people looking for alternative solutions for their health, the direct-selling opportunity can provide effective results to people seeking a healthier lifestyle. Direct sellers provide personalized product recommendations to their clients based on their individual preferences.
Outlook for 2020
The COVID-19 pandemic has forced many businesses to restructure and move their focus online. Direct selling companies are no exception. In a rapidly changing business environment, direct selling provides flexibility and adaptability for entrepreneurs. The virtual nature of direct selling fits seamlessly with the daily lives of people as a side hustle or a full-time endeavor.
As people are spending more time indoors, they are consuming more media than ever before. This presents a perfect opportunity for the direct selling industry to leverage the power of social media to reach and interact with potential customers. The future of direct selling lies in e-commerce and digital platforms, including mobile apps, web portals, and eCommerce stores. More people are joining the direct selling industry as a result of the pandemic impact in unemployment rates.
Conclusion
Direct selling is and will continue to be a dynamic industry that is continually evolving to keep up with the trends of modern-day business. The industry has remained stable even with the ongoing pandemic as it leverages on digital platforms to meet its customers’ needs. The social distancing regulations have put a higher emphasis on online platforms, and this has created growth opportunities for the direct selling industry. With the industry’s flexibility, entrepreneurs can adapt and find new ways to succeed in the changing business landscape.
FAQs:
1. What is Direct Selling?
Direct selling is a retail distribution channel where a company sells directly to the consumer, outside of a traditional brick-and-mortar retail setting.
2. How much is the global direct selling industry worth?
The global direct selling industry was worth approximately $180 billion in 2019.
3. How has the Covid-19 pandemic affected direct selling?
The pandemic outbreak has forced many businesses to restructure and move their focus online. Direct selling companies are no exception. There is more focus on e-commerce platforms, and more people are joining the industry as a result of the pandemic impact on unemployment rates.
4. How do direct sellers adapt to changing conditions?
Direct sellers are self-employed and can adjust quickly to changing conditions, thus offering personalized product recommendations to their clients based on their individual preferences.
5. What is the future of Direct Selling?
The future of direct selling lies in e-commerce and digital platforms, including mobile apps, web portals, and eCommerce stores. More people are joining the direct selling industry as a result of the pandemic impact in unemployment rates.
