Latvia MLM Industry generates 29.7 million Euro in 2014

Aleksandrs ?akste, the Chairman of Latvian Direct Selling Association


Last year the total sales of Latvian direct selling association member companies grew at slower pace than in 2013 and increased by 2% to 29.7 million euros (excl. VAT). The number of people involved in direct sales in Latvia increased over 2 percent to over 43000 people.

“Last year the direct selling market experienced a slowdown of growth, but according to the last 3 years compound annual growth rate, direct selling companies experienced higher than 8% yearly average growth. It is one of the best results among the different sales channels of retailing”, says Aleksandrs ?akste, the Chairman of Latvian Direct Selling Association (LTTA).

According to A. ?akste, 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 was mostly determined by the first quarter, which was affected by the euro introduction and the need for consumers to adapt to the value of new currency. The fluctuations in consumer expectations and changes in consumer spending due to possible external threats and geopolitical tensions haven’t helped companies in increasing their sales at a higher rate.

The number of people involved in direct sales in the last few years is growing at a steady pace. As shown by an LTTA initiated public survey (conducted by Aptauju Centrs), 6% of respondents personally or someone from their family members are selling direct selling products, while 5% of respondents expressed willingness to get involved with one of the direct selling companies. According to the survey, the most attractive aspects of the direct selling business opportunities were: additional income (47% of respondents), possibility to work part-time (28%), to buy products at discount prices (26%), no need for specific education (23%) and independence (20%).

Among the Baltic States, the direct selling industry experienced the biggest growth in Estonia, where growth was 3% and reached 32.5 million Euro (excl. VAT), while in Lithuania it was 2.5%, at 40.4 million Euros (excl. VAT).  The number of people involved in direct sales in Estonia increased by 1% to more than 34000 people, and in Lithuania by 2% to more than 50000 distributors.

About LTTA

Latvian Direct Selling Association is a national voluntary not-profit trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers. 

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