Direct Selling

Brief Excerpt from Industry Overview Chapter:Companies in this industry sell a wide variety of products, primarily door-to-door or through other person-to-person contact. Major US companies include Amway, Avon, Mary Kay, and Tupperware, as well as Coway (South Korea), Herbalife (Grand Cayman), Infinitus, and Perfect (both from China), Natura (Brazil), and Vorwerk (Germany).COMPETITIVE LANDSCAPEPersonal income and consumer preferences drive demand for the diverse array of products sold by the direct selling industry. Profitability for companies depends on the success of independent representatives who sell products to the public. Large companies enjoy economies of scale in marketing and in training and supporting representatives in the field. Small companies can compete effectively by offering popular products. The US industry is fragmented: the 50 largest companies account for about 40% of industry revenue.PRODUCTS, OPERATIONS & TECHNOLOGYMajor products include automobiles and light-duty trucks, which account for about 20% of the industry's revenue. Other products include medicines, vitamins, minerals and supplements, about 10%, followed by automotive fuels (about 10%) and food dry goods and other foods (less than 5%).