Since 2003, direct marketing has been the fastest-growing channel in the worldwide beauty industry. Much of this growth has come from the BRIC markets.
In both Brazil and Russia, direct sales is among the leading outlets and accounts for 24% of total personal care sales. Consumers in both countries view direct sales as the go-to channel for high quality products. In China, channel share has nearly doubled to 10% over the last five years as a result of the enactment of the government’s Direct Sales Law, making it compulsory for direct selling companies to obtain a direct sales license.
Person-to-person sales are so important in these countries because the channels of distribution are not as developed. The direct sales representatives still very often go door-to-door or host parties, and as a result the relationships they have developed with their customers are often strong and unbreakable. Likewise brands participating in this channel—Avon, Natura, and Oriflame, among others—also have a loyal following. Any expansion plans in the BRIC markets must take direct sales and these relationships into consideration, as they could be a barrier to entry.
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