Overall direct sales retail trends in Europe

Steady growth for over four years

The European direct selling industry exhibited phenomenal resilience and growth from 2019 through 2023. Consequently, retail sales of the European direct selling industry have grown by 8.6%. It defines the robustness of the sector against the fluctuating global economic times.

• 2019-2023 growth: Retail sales have grown from $33,824 million in 2020 to $36,149 million in 2023, representing an 8.6% growth.

• Pandemic impact:

• 2020: Sales rose by 1.6% to $33,824 million, demonstrating that the industry has been able to bounce back during the early stages of the pandemic.
• 2021: The sector had a continued growth of 4.4% to $35,298 million, indicating sustained consumer confidence.

• Recent performance:

• 2022: A slight decline of 1.0% to $34,958 million, which is mainly due to economic uncertainty and changes in consumption behaviors.
• 2023: Strong rebound by 3.4% increase to $36,149 million. It signals a return toward the positive growth path.

Implications for direct selling businesses: Steady growth trend shows great avenues for direct selling businesses to expand their business opportunities into Europe. These small setbacks appear relatively insignificant if matched with the general positive trend of the WFDSA report.

Top European direct selling markets

Europe also boasts six of the 24 billion-dollar markets in direct selling, each offers its own challenges and opportunities

1. Germany (#2 Globally) - Growth: +5.1%
2. France (#9 Globally) - Growth: -1.0%
3. Italy (#12 Globally) - Growth: +3.3%
4. Russia (#19 Globally) - Growth: -1.7%
5. United Kingdom (#20 Globally) - Growth: +3.4%
6. Poland (#21 Globally) - Growth: +1.0%

Strategic focus: Zero in on high-growth markets like Germany, Italy and the UK, while also shaping strategies to address the challenges in France and Russia.

Country-specific insights for direct selling in Europe

Germany

Market leadership and growth

Germany exercises the dominant position in Europe's direct selling landscape with 54.7% of direct sales in the region. As per WFDSA, retail sales in Germany increased by 7.0% in 2023 while overall retail sales grew 2.9% and online retail sales by 1.3%.

Emerging categories:

• Energy and telecommunications: Driven by increasing consumer demand, these sectors are witnessing significant growth within direct selling.

Prospects in the future: According to Direct Selling Association (DSA), the sales growth will be modest and possibly the number of salespeople may decline in 2024. However, social media has increasing importance, through which, companies can attract a young age group by developing tailored products, activities and incentives.

Salesforce dynamics:

• Gender composition: Women in direct selling salesforce account for 35%, very close to 38% of new German sole proprietors.
• Entrepreneurial perceptions:

• 36% of adults report that starting a business is easy.
• 41% say that there are good opportunities for new businesses.
• 42 % feel that they have the abilities and knowledge to start a MLM business.

Strategic recommendations:

• Utilize social media: Adopt digital platforms to engage younger audiences.
• Give importance to emerging categories: Invest in energy and telecommunications products to meet surging consumer demand.
• Empower female entrepreneurs: Continue to support and expand female representation within the salesforce.

Russia

Retail sales decline and challenges

According to WFDSA, Russia witnessed a huge decline in retail sales to $1,266 million in 2023, down by 7.3%. Lower consumer income and growing competition from online sales channels explain the industry's downward trend.

Mitigating factors:

• Strong consumer relationships: Demand for personal communication, trust and loyalty strongly drives consumer relationships.
• Product preferences: Increased interest in Asian beauty products, devices and locally produced items in personal care, home care and wellness categories.

Salesforce dynamics:

• Youth engagement: Close to 70% of distributors aged under 25 consider direct sales their primary occupation.
• Gender distribution: 89% of distributors are female, a number that is much higher than 44% of new sole proprietors.

Strategic recommendations

• Enhance online presence: Strengthen digital sales channels to counteract online competition.
• Capitalize on product preferences: Work on Asian beauty and wellness products to benefit from consumer preferences.
• Engage youth: Continue to attract young distributors who place importance on career growth and stability in direct selling.

United Kingdom

Retail sales decline and future outlook

Direct selling in the UK went down by 10% in 2023 as a side effect of the broader economic pressure. However, the DSA is optimistic for 2024, with companies looking at digital moves to keep pace with the evolving consumer preferences.

Trending products:

• Health and wellness
• Beauty and personal care
• Sustainable and eco-friendly items
• Technology and digital products
• Personalized products

Innovations in the channel:

• Personalized nutritional and wellness plans
• Hybrid product experiences (fitness equipment and virtual training programs)
• Eco-packaging and refill solutions
• CBD and hemp-based products
• Wearable health devices

Salesforce trends:

• Diverse and digitally savvy representatives: New entrants are more diverse and adept with digital tools.
• Flexible entrepreneurial opportunities: Driven by the need for flexibility and additional sources of income.
• Community and support: Emphasis on mentorship, community-building and personal development.

Competitive landscape

• Competitors: Gig economy, ecommerce platforms, subscription box services and influencer marketing.
• Competitive advantages: Relationship selling, comprehensive support and training, sense of community and low barriers to entry.

Strategic recommendations:

• Embrace digital transformation: Investment in robust online platforms and using social media for marketing.
• Innovate product offerings: Introduce personalized and sustainable products so as to meet the rising consumer demand.
• Building community: Empower powerful support networks through events, social media groups and mentorship programs.
• Personalization: Highlight the unique value that personal interactions and relationship-based selling can bring.

Trends and observations in direct sales Europe

Direct sales in Europe is experiencing rapid change, with newer trends modernizing the way companies do business with consumers. From breakthrough technologies to rapidly evolving market trends, companies are keeping pace with all changes in every way possible. Let's uncover in this section: what the main drivers and insights that could be behind the future course of direct selling in Europe.

Resilience and growth in Europe

Europe’s direct selling industry has demonstrated steady growth over the past four years and has maintained high levels of resiliency even in the face of economic difficulties. The potential for growth remains strong, as seen in the rebound of the sector with a 3.4% sales increase in 2023.

Shifts in consumer behavior

• Digital adoption: More and more consumers are adopting online shopping, while emerging social media trends influence their purchase behavior.
• Product preferences: Wellness products, sustainable, eco-friendly options and personalized experiences are the other demand driver.
• Economic factors: Soft economies in some regions result in selective spending on fewer and less expensive goods.

Salesforce dynamics

• Attracting younger generations: Young generations have been responsive to flexible and entrepreneurial opportunities and require companies to rebrand marketing efforts into more modern approaches.
• Diversity and digital savviness: The salesforce has increased in diversification and digital literacy, leading to better engagement and outreach in sales.
• Community and support: Mentorship combined with personal development results in a sense of belonging, which entices loyalty from the representatives.

Competition and differentiation

• Competitive landscape: Direct selling companies tend to compete with the gig economy, ecommerce and influencer marketing.
• Differentiation strategies: Valuing personal relationships, providing complete support and training and maintaining low barriers to entry are key to standing out.

Strategic implications for direct selling success in Europe

Here comes a few actionable insights for direct selling businesses and aspiring entrepreneurs to navigate the challenges and opportunities that lie ahead.

Embrace digital transformation

• Invest in technology: Build strong online platforms and digital tools in order to manage sales and recruitment processes.
• Utilize social media channels: Embrace social media as a marketing and engagement tool and amplify your reach.
• Training and support: Provide comprehensive digital distributor training to boost the online selling skills of representatives.

Innovate product offerings

• Align with consumer trends: Focus on health, wellness, sustainability and personalization to stay ahead of the curve.
• Product innovation: Launch new products by integrating technology with traditional offerings, like wearable health devices.

Enhance salesforce development

• Attract and retain talent: Offer personal development opportunities, mentorship programs and entrepreneurial opportunities to attract young talent.
• Emphasis on diversity: Promote a diverse sales force to better reflect the demographics of the market, hence enhancing engagement.

Differentiate through personalization and relationships

• Leverage strengths: Build on the unique value of personal interactions and relationship-based selling.
• Build community: Foster a sense of belonging with the help of events, online communities and strong support networks.

Address competition proactively

• Know the competition: Understand what's being offered by gig economy platforms and ecommerce players and then find out gaps and opportunities.
• Highlight advantages: Prioritize the support structures, training and personal growth opportunities inherent in direct selling.

The future of direct selling in Europe

The European direct selling industry has proven itself quite resilient and adaptable, even to such challenges as economic downturns and changes in consumer behavior. WFDSA data confirms that markets like Germany and UK are moving ahead of the rest. Direct selling companies in these geographies primarily make use of digital platforms and emphasize more product innovation to remain relevant. However, it's the emphasis on personal relationships and community support that gives an edge to the industry as well as cultivating steady growth as well as exciting opportunities for entrepreneurs.

Strategic focus areas:

• Digital integration: Tap the power of technology to enhance sales and recruitment efforts.
• Product innovation: Introduce products that readily meet with evolving consumer trends and lead with innovation.
• Salesforce empowerment: Invest in the development and support of sales representatives so as to attract and retain top talents.
• Competitive differentiation: Leverage the unique strengths of direct selling, including personal relationships and building community, to really stand out in a crowded marketplace.

With these strategic areas handy, direct selling companies in Europe will be able to sustain their growth while opening valuable opportunities for entrepreneurs and meeting the transforming demands of the modern consumers.

Enrich your business with these insights and strategic recommendations to unlock unparalleled growth and success in the vibrant European direct selling landscape.