Slow sales: Despite expansion, fierce external competition will stifle growth

Over the past five years, the Direct Selling Companies industry in Canada has experienced robust growth due to a positive economic climate. Rising consumer spending, disposable income levels, consumer confidence and internet connectivity, as well as a declining unemployment rate, have contributed to industry expansion. The Direct Selling Companies industry is vulnerable, with operations susceptible to a substantial number of external competitors due to the wide array of products industry operators sell. Many direct selling companies are unable to compete with these alternatives due to their lack of size and scope. The industry is expected to continue its growth over the next five years to 2023, though external competition will hamper this ascent...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
5.8%
Forecast Growth 18-23
Profit
Employment
6,622
Businesses
14,310

Industry Threats & Opportunities

  • Rising consumer spending and a declining unemployment rate have contributed to industry expansion
  • Convenience has increasingly lured consumers away from direct sellers
  • Rising internet connectivity can be a harbinger for increased market penetration for operators
  • Industry Report - Industry Key Buyers Chapter

    The Direct Selling Companies industry in Canada is highly fragmented with a low level of market share concentration, with the three largest players expected to account for less than 10.0% of industry revenue each in 2018. Over the five years to 2018, the industry has managed to continue to expand, adding enterprises at an annualized rate of 3.7%. The majority of enterprises are nonemployers, with only 13.4% of enterprises expected to have one or more employees in 2018, according to Statistics Canada. Consumer spending has grown over the five years to 2018, encouraging the addition of new, small players hoping to capitalize on growing household expenditures. How...purchase to read more.

    Additional Insights for the Direct Selling Companies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Direct Selling Companies Industry are

  • Receiving the benefit of word of mouth recommendations
  • Access to niche markets
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Number of fixed broadband connections in the Direct Selling Companies industry impact industry performance..

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    What's in this report

    What is the Direct Selling Companies Industry?

    Operators in this industry sell a product or service from person to person, away from a fixed retail location. Retailers in the industry are known as independent consultants, distributors or representatives. Sales are usually done at home parties and workplaces, in street-corner carts or by door-to-door marketing. However, direct sellers of either fuel or food for immediate consumption are excluded from this industry.

    Industry Products
  • Home and family-care products
  • Wellness products
  • Personal care products
  • Leisure and educational products
  • Other products and services
  • Industry Activities
  • Direct selling of clothing and accessories
  • Direct selling of wellness products
  • Direct selling of leisure and educational products
  • Direct selling of home and family products
  • Direct selling of other products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Number of fixed broadband connections
  • External competition for the Direct Sellers industry
  • Per capita disposable income
  • National unemployment rate

  • Current Performance
  • Competition and participation
  • Profitability amid change
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition strains growth
  • Changing industry structure
  • Table: Direct Selling Companies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Direct Selling Companies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Religious Organizations in Canada
  • Civic, Social & Youth Organizations in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Brand-Name Pharmaceutical Manufacturing in Canada
  • Cosmetic & Beauty Product Manufacturing in Canada
  • Generic Pharmaceutical Manufacturing in Canada
  • Soap & Cleaning Compound Manufacturing in Canada
  • Wholesale Trade In Canada

  • Products & Services
  • Personal care products
  • Home and family-care products
  • Wellness products
  • Leisure and educational products
  • Other products and services
  • Chart: Direct Selling Companies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged between 40 and 54
  • Consumers aged between 30 and 39
  • Consumers aged between 55 and 64
  • Consumers aged 30 and younger
  • Consumers aged 65 and over
  • Chart: Major Market Segmentation for the Direct Selling Companies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Direct Selling Companies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Direct Selling Companies Industry

  • Industry Globalization
    Avon Canada, Amway Canada Corporation,
  • Table: Avon Canada - financial performance
  • Table: Amway Canada Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Direct Selling Companies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Direct Selling Companies Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer confidence index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    E-Commerce Retailer
  • A retailer that primarily sells goods and services via the internet. Many of these companies do not have brick-and-mortar locations.
  • Mass Merchandiser
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
  • Multilevel Marketing (Mlm)
  • A marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Direct Selling Companies market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Direct Selling Companies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Direct Selling Companies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Direct Selling Companies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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