Baltic Direct Selling Market Grew By 2.5% In 2014 To 102 Million
In 2014, the total sales of direct selling industry in the Baltic States grew by 2.5% and exceeded 102,5 million euro (without VAT). Meanwhile, the number of people involved in direct sales increased by 1.5% and it reached more than 128 thousand persons.
In Estonia, the volume of direct sales experienced the biggest growth by 3%, in Lithuania – 2.5% and in Latvia – 2% and was respectively 32.5, 40.4 and 27.5 million euro, while the number of direct sellers (consultants) in Lithuania and Latvia increased by 2% and exceeded respectively 50000 and 44000 persons, in Estonia by 1% up to more than 34500 persons.
“Last year the direct selling market in the Baltic States experienced sustainable growth, while according to the last 3 years compound annual growth rate, direct selling companies experienced higher than 9% yearly average growth. It is one of the best results among the different sales channels of retailing”, says the General Secretary for Baltic Direct Selling Associations Gintautas Zaleckas.
According to G.Zaleckas, direct selling is not losing its attractiveness as a way of shopping, where each client can get a personal service and advice from the direct seller/consultant and is able to acquire high quality products. The slower growth of sales in 2014 was mostly determined by the fluctuations in consumer expectations and changes in consumer spending due to possible external threats and geopolitical tensions. Looking into the future the sales of direct selling companies in the Baltics should grow due to higher internal consumption and increasing incomes of consumers.
Facts and figures
According to the data of European Direct Selling Association-Seldia, the EU countries direct selling companies‘ total sales (without VAT) amounted to over 18.7 billion euros in 2013, and direct selling companies give possibility of additional earnings or individual business to more than 5.1 million people.
According to the data of World Federation of Direct Selling Associations (WFDSA), in 2013 the total sales (excluding VAT) of the direct selling companies belonging to the federation amounted to 178.5 billion USD, whereas number people involved in direct sales was over 96 million people.
Direct selling for 85% of the people involved in this industry is a source of additional earnings and even 80% of representatives involved in this business are women.
Baltic Direct Selling Associations are national voluntary not-profit trade associations of the leading firms that manufacture and distribute goods and services sold directly to consumers. The Associations members are: Amway, GNLD International, Herbalife, Lux, Mary Kay, Morinda, NL Europe, Oriflame and Zinzino.
Source: https://www.baltic-course.com/eng/good_for_business/?doc=105043