Direct Selling Industry Profile

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).

Worldwide revenue for direct selling companies is about $248.51 billion in 2024, according to the Business Research Company. The US is the world's leading market for direct sales, followed by China, Korea, Germany, and Japan, according to Statista. China, the US, and Japan, are some of Amway's top markets.

The US direct selling industry includes about 1.1 million establishments (single-location firms and units of multi-location firms) with a combined annual revenue of $4.9 trillion.

COMPETITIVE LANDSCAPE

Personal 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.

Competition for the industry includes online, catalog, and brick-and-mortar retailers.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include automobiles and light-duty trucks, which account for about 20% of the industry's revenue. Other products include medicines, ...