Americas are home to diverse cultures and ethnic groups as it is to unique trends and innovations. Lifestyle, fashion, food and culture are entirely different from the rest of the world. These unique traits make up the continent creating unlimited opportunities for businesses across various sectors in ways that make them stand apart globally.
Direct selling industry, which is rooted in the Americas, stands as a testament to the region’s unique traits and tastes. The industry has come a long way blending into it the diverse American interests and preferences. Popular American companies like Amway, Mary Kay, Nu Skin, etc. have created a niche for themselves in the global market and has attracted global attention to the continent.
Expanding or establishing into the American market requires an accurate understanding of the market trends, consumer behaviors and strategic opportunities in the region.
Research methodology
The research encompasses direct selling industry data of North, Central and South Americas as compiled by the World Federation of Direct Selling Associations (WFDSA) in their 2023 annual report. Detailed analysis of growing markets and emerging challenges has been presented with factual information into the specific regions.
The purpose
The comprehensive analysis is aimed at creating insightful opportunities for direct selling businesses aspiring to venture into the region. The report analyzes the direct sales trends across a period of 4 years from 2019-2023 highlighting the top performing markets, country-specific insights and strategic recommendations for direct selling companies to establish successfully in the American direct sales market.
Retail sales trends in the Americas (2019-2023): An overview
Direct selling in the Americas from 2019 to 2023 has seen both growth and decline. The year-by-year analysis below cites the growth trends in the region with the total revenue generated.
2019
Retail sales was a recorded $58,654 million.
2020
The pandemic phase saw a notable increase of 9.9% in growth rate with a revenue of $64,445 million. This was a striking reflection of the industry’s resilience amidst societal and economic fluctuations.
2021
Even with rising challenges accelerated by the pandemic, the direct selling industry maintained a 5% growth rate and a retail sales of $67,695 million.
2022
Possibly due to the economic distresses caused by the pandemic, retail sales fell by 3.8% to $65,135 million.
2023
A further decline of 3.8% led the direct selling industry to generate an annual retail sales of $62,632 million.
However, the overall growth rate of 4-year combined was +6.8% with improved sales performance compared to the pre-pandemic period.
Key insights for direct selling businesses
- The recent declines show emerging challenges in the industry when compared to the growth in the pandemic period.
- The increased sales, however, indicates the strong potential and resilience of the industry to recover from possible catastrophes, whether economic, social, cultural, technological or environmental.
- Direct selling companies can leverage these strengths to make investments and strategic plans for expansion.
Top 7 direct selling markets in the Americas
Direct selling markets in the North, South and Central Americas contributed greatly to the growth in the region. However, it is important to note that the region experienced a mix of both positive and negative growth trends.
| Market | 2023 Retail Sales (USD millions) | Growth (%) |
|---|---|---|
| United States | $36,660 million | -2.9% |
| Brazil | $7,962 million | -2.0% |
| Mexico | $6,874 million | +2.5% |
| Canada | $2,352 million | -8.5% |
| Colombia | $2,312 million | +10.8% |
| Peru | $2,129 million | +6.2% |
| Argentina | $1,778 million | +72.0% |
| Ecuador | $904 million | +2.6% |
Positive performers
- 5 out of the top 10 American markets exhibited significant progress in 2023.
- Colombia, Argentina, Ecuador and Mexico emerged as the top performers with growth rates of +0.4%, +114.5%, +2.6% and +3.0% respectively.
- Favorable market conditions and innovative direct selling strategies contributed to the growth of these regional direct sales markets.
Negative performers
- Canada faced a severe decline of –5.9% and generated a retail sales revenue of $2,352 million.
- United States (-9.5%) and Brazil (-2.0%) also suffered declines though less severe.
Key insights for direct selling companies
- Focus on investments and development strategies in the high potential markets.
- Review and employ new targeted strategies to recover declines in the low performing markets.
Country-specific insights on various American direct sales markets
Brazil
The emerging Brazilian direct selling market comprises more than 70 direct selling companies and 3 million independent consultants. Categorized as a market with high penetration rate (0.366%), Brazil often ranks among the high performing global direct sales market.
- Sales: The retail sales performance of Brazil grew by +4.6% and reached $7,962 million.
- Salesforce: The number of direct sellers in Brazil declined by –13.1% in 2023. Women constitutes majority of the salesforce (85%).
- Entrepreneurial interests:
- 43% consider it easy to start a business.
- 65% believe that there are good business opportunities.
- 66% are confident that they have the skills and knowledge to start a business.
Challenges in the Brazilian direct selling market
- Motivating existing salesforce and attracting new ones to join the industry amid declining numbers.
- Gender gap in the unemployment rate in Brazil is 9.4% women as opposed to 6.5% men.
Opportunities in the Brazilian direct selling market
- Tech-savvy young Brazilians can be attracted through affiliate programs, social media marketing and ecommerce.
- Launching environmentally conscious products can attract eco-minded customers in the Brazilian market.
- Significant opportunity to widen salesforce could be achieved by focusing on women participants.
- Brazilians are excited about entrepreneurship opportunities with 65% believing that there are good opportunities to start a business.
Strategic recommendations for direct selling companies
Investing in the Brazilian direct sales market will need a deeper analysis into one or all of the below factors.
- Engage independent consultants through attractive incentive programs and recognize their efforts promptly to keep them motivated.
- Create a strong digital presence and expand market reach through targeted digital marketing campaigns and ecommerce platforms.
- Be socially responsible through sustainable business processes and eco-friendly products.
Chile
Chile, the Latin American direct sales market, is a top contributor to direct selling in the Americas. Chile is a direct sales market with higher penetration rate of 0.150%. Chile’s global retail sales in 2023 was $503 million. Despite the capacity of the market, it suffered a decline of –8.8% in 2023. Weak national economic conditions and a strong competition could have accelerated the decline but overall, the industry remained resilient to the challenges.
- Sales: The retail sales generated by Chile in 2023 was $503 million citing a decline of –8.8%.
- Salesforce: Women constitutes majority of direct selling salesforce in Chile. 86% of direct sellers in Chile are women compared to 41% in other professions.
- Entrepreneurial interests:
- 50% of adults consider it easy to start a business.
- 59% believe that there are good opportunities to launch a new business.
- 76% are greatly confident about their skills and knowledge to start a business.
Strategic recommendations for direct selling companies
The sales growth in the Chile direct selling industry is expected to improve in 2024 through strategies that focus on sustainability and increasing consumer engagement.
- Focus on sustainable practices and align products with consumer values.
- Personalize marketing campaigns and customer interactions to improve engagement and customer satisfaction rates.
- Support female salesforce with necessary tools, appropriate training programs and resources to help them fight the odds in the market.
Colombia
Colombian direct selling market is one of the highly potential markets in Latin America in terms of customer engagement and entrepreneurial spirit. Colombia ranks #6 among the high penetration markets with 0.636% penetration rate.
- Sales: The retail sales in 2023 fell flat by +0.4%.
- Salesforce: Women leads direct selling in Colombia with 81% majority. Gender gap ratio in unemployment (11.8% women vs. 7.7% men) could have possibly contributed to the rise in the number of female direct sellers in Colombia.
- Entrepreneurial interests:
- 46% of adults consider it easy to start a business.
- 60% believe that there are good opportunities available.
- 72% are confident about their skills and knowledge to start a business.
Strategic recommendations for direct selling companies
- Set a clear focus on digitalizing distributor training and support.
- Prioritize product quality and ethical business practices.
- Offer tools to personalize work-life balance for attracting younger generations in the region.
United States
United States remains as a market that exhibits direct selling growth despite its fall in 2023. The market has always stayed strong to the changing market and consumer trends. However, in 2023 the US direct sales market after an initial post pandemic boom went into a decline phase which is expected to get better in 2024.
- Sales: In 2023, the US direct selling market went through a sales slow down by –2.9% and generated $36 billion.
- Market trends:
- Sales shares of financial services and real estate brokerage have increased considerably in the past few years.
- Higher participation of Americans was seen in gig work, online selling and freelancing increasing direct selling competition.
- Entrepreneurship interests:
- 56% consider it easy to start a business.
- 54% believe that there are good opportunities available to start a business.
- 49% are confident about their skills and knowledge to launch a new business.
Strategic recommendations for direct selling companies
- Highlight the positives of choosing direct selling as a career to cut down on the competition with similar entrepreneurial opportunities.
- Offer complete support and tools to reduce start-up risks and build confidence among the aspiring entrepreneur segments.
- Build transparent compensation structures and easily achievable targets to reduce retention rates and attract new talents.
Mexico
- Retail sales growth in Mexico was up by 3.0%.
- Mexico is a high penetration direct selling market that recorded a penetration rate of 0.384%.
- Expansion into Mexico will demand a diverse product portfolio and advanced technology blueprint.
Peru
- The 2023 retail sales in the region fell by –0.7%.
- Direct selling companies venturing into the Peruvian direct sales market will need a strong focus on product innovation and maintaining strong consumer relationships.
Argentina
- With a +114.5% retail sales growth Argentina holds positive hopes for direct selling industry in Latin America.
- Targeted marketing and personalized salesforce training programs can help businesses cut down on challenges in the Argentinian direct sales market.
Ecuador
- The growing Latin American direct sales market recorded a retail sales growth rate of +2.6%.
- Strong online presence and an innovative product line can help establish a strong foothold in the Ecuador direct sales market.
Key observations from the performance of America’s direct sales markets
Regional dominance and trends
- America hosts 7 out of the 24 Billion Dollar markets making it the most powerful direct selling region in the world.
- Direct selling markets within the continent like Colombia, Peru and Argentina have displayed positive growth trends while United States, Brazil and Canada lined up to mark declines.
Gender dynamics
- Majority of direct sellers are women in countries like Chile (86%) and Colombia (81%).
- Women consider direct selling as a promising substantial income opportunity given the unemployment rates of women in the region.
Digital transformation and ecommerce trends
- Increased adoption of digital-first strategies in marketing and training like virtual training sessions, gamification, referral programs, affiliate programs, social media and ecommerce to reach out to and engage customers and distributors.
- Competition caused by gig economies presents both challenges and opportunities for direct selling businesses.
- Rising interest in online shopping has compelled businesses across all sectors to integrate an ecommerce store.
Product Innovation and sustainability
- Demand for eco-friendly products: Prioritize on environment-friendly products and processes to attract eco-savvy buyers and to align with global sustainability trends.
- Trending product categories: Health and wellness, beauty and personal care, sustainable and eco-friendly items, technology and digital products and personalized products.
Entrepreneurial support and community building
- Attracting younger generations: Online training, flexible earning opportunities and creating a sense of community through brand events and mentorship programs can help attract youngsters into direct selling.
- Strong support systems: Emphasizing relationship selling, supportive training programs and low entry barriers differentiate direct selling from other entrepreneurial opportunities.
Key considerations for direct selling businesses in the Americas
Adopt digital-first strategies
- Digital tools like online platforms, social media integrations and ecommerce can simplify operations and expand brand reach.
- Affiliate marketing and referral programs can fuel network expansion by attracting both consumers and distributors alike.
Focus on product innovation and sustainability
- Brands with sustainable and ethical business practices enhance brand image and are preferred widely by customers.
- Trending product categories like health and wellness, beauty, technology and personalized products generate considerable demand in the American markets.
Prioritize salesforce engagement and retention
- Implement strategies to re-engage declining salesforce numbers. Impactful incentive programs, recognition initiatives and enhanced support systems are sure to accelerate engagement and retention in the current scenario.
- Attract younger, more digitally savvy and diverse salesforce through advanced marketing techniques and flexible business opportunities.
Enhance Entrepreneurial Support
- Offer personalized and interactive training programs for newcomers and low performers to enhance their selling skills and improve product knowledge.
- Build brand and mentorship communities that contribute to an effective support system and bring forth networking opportunities.
Address competitive challenges proactively
- Uphold the power of relationships, personal interactions and trust building that direct selling offers to stand out from gig economy and online sellers.
- Promote the benefits of direct selling, such as low entry barriers, flexible work schedule, comprehensive support and supplemental income opportunities.
Target high performing markets
- Make strategic investments in markets like Colombia, Peru and Argentina.
- Analyze and implement successful strategies from high-growth markets in low performing regions to drive overall growth.
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Conclusion
Direct selling industry in the Americas constitutes both high and low performing markets which contributes substantially to the growth of the industry on a global scale. High performing markets presents businesses with robust opportunities for expansion while low performing markets demand considerable attention to improve performance in the coming year. Addressing challenges tied to generating consistent sales and retaining a highly efficient salesforce can bring about notable improvements in the regions.
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