The economic downturn in South Korea is expected to negatively impact direct selling in 2025 and 2026, leading to declines in sales, and although a return to marginal growth is expected for the rest of the forecast period, the level of sales seen in 2024 is not expected to be achieved. Rising inflation and living costs have made consumers more cautious about spending, which will impact demand for direct selling.
Health and beauty direct selling is expected to account for the highest share of sales in direct selling by the end of the forecast period, even overtaking other direct selling, which is expected to continue its declining trend. Consumer health direct selling is anticipated to see the strongest current value growth within direct selling due to rising health awareness, while other direct selling is likely to see a greater challenge from e-commerce due to the wide range of products available online.
Nu Skin Korea is expected to remain one of the top players in direct selling in South Korea in the forecast period. Its performance is likely to be boosted by its launch of Smart Beauty Membership, a subscription programme designed to enhance customer convenience.
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Direct Selling
Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace, and other places away from permanent retail locations. Direct selling occurs in two primary ways: On a one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or on a party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose). Avon stands as a prime example of a direct seller using one-to-one selling, whereas Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, and financial services - are excluded.
See all of our definitionsThis report originates from Passport, our Direct Selling research and analysis database.
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