The emergence of social commerce and livestreaming e-commerce is seen as a potential threat to the future of direct selling. AI chatbots offer businesses an opportunity to provide more cost effective customer service which could prove more appealing to younger consumers, some of whom view direct selling as old fashioned.
Direct selling companies are increasingly adopting new technologies, such as online platforms and social media, to reach and interact with customers, with some players also making use of AI chatbots to answer consumer enquiries 24/7. AI could also potentially make it easier for direct sellers to find new customers and for customers to learn about and purchase products.
Efforts to attract new customers through appearances at trade fairs, markets and in pop-up stores may help mitigate the ongoing shift towards e-commerce, but the category will continue to face challenges in the years ahead. Direct selling companies will need to respond to changes in the market both in terms of product trends and shopping behaviour in order to remain relevant.
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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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