With its sales parties, sales visits and a growing Internet presence, the direct selling industry has increased its sales by more than 50 percent in the past decade. This is the result of a study published on Monday by the University of Mannheim on behalf of the Federal Association of Direct Sales Germany (BDD). According to this, sales of Vorwerk, Avon, Bofrost and Co. increased between 2011 and 2021 from 12.6 to 19.1 billion euros.
Even the corona pandemic and the resulting worldwide delivery bottlenecks hardly had any impact on direct sales. In the first Corona year 2020, the industry increased its sales again by around 1 percent despite all contact restrictions. In the second Corona year 2021, it increased by 1.9 percent.
However, the current slump in consumer sentiment following the Russian invasion of Ukraine is also causing problems for sales professionals. “Direct sales are also feeling the effects of the reluctance to buy on the part of many consumers triggered by the war in Ukraine and high inflation,” said Elke Kopp, deputy chair of the BDD to the German Press Agency. “Shopping behavior has changed. Customers often choose cheaper options – or they buy less.”
According to the study, a total of a good 900,000 people worked as so-called sales partners in direct sales in 2021 – one percent less than in 2020, but a third more than in 2011. Household goods, clothing and cosmetics are mainly sold. But many construction products and insurances are also sold directly to the public. According to the survey, the most important sales channels are party sales and announced sales visits. However, companies in the sector also sell their products significantly more frequently than ten years ago via the internet and retail outlets.
Even though the industry is currently feeling the effects of economic turbulence, Kopp is confident about the future. “Direct sales have been growing continuously for years and have overcome many crises. The war in Ukraine and high inflation will not change this trend either.” (dpa)