Despite local governments’ vaccination campaigns across the world, we are still in the midst of the epidemic. According to the IMF, the world economy would contract by 4.4 percent in 2020. The majority of the world’s economies are seeing growing unemployment. One industry, though, has remained stable. According to the World Federation of Direct Selling Associations’ (WFDSA) annual Direct Selling Report, worldwide direct sales grew by 2.3 percent year over year, from US$175.3 billion in 2019 to US$179.3 billion in 2020.
Despite the destruction inflicted by Covid-19, the 3-year Compound Annual Growth Rate (CAGR) is increasing, according to the study. The Direct Selling industry grew at a 3.0% CAGR (excluding China) from 2017 to 2020, exhibiting resilience in a time when other commercial sectors are witnessing a declining trend due to the pandemic.
The ongoing expansion of the direct selling sector is unsurprising. In the past, this industry has always seen growth amid economic downturns. During difficult economic times, individuals are increasingly conscious of the need to diversify their revenue sources, and for those seeking to start a business, direct selling offers an appealing chance to do so without a large investment or the headaches of operational and logistics.
The Pandemic Effect
The relationship and personal touch that distributors create with their clients and team members is the cornerstone of the direct selling company. The direct selling sector took a hit in the early days of the epidemic, as the lockdown forced social distance and extended periods of seclusion. Most businesses, on the other hand, rapidly recovered as they adapted to the new normal by shifting to digital engagement tools, virtual events, and training programs.
Many organizations were obliged to accelerate their digital deployment as a result of the epidemic. This was especially important for the direct selling sector, which has historically relied on in-person contacts. Those that were able to make the transition swiftly and connect with and assist their consumers and distributors not only survived but flourished!
Direct Selling: the future of regular and gainful income?
According to the International Labour Organization (ILO), workplace closures in countries with Covid-19-related limitations would result in the loss of 114 million jobs in 2020. This is especially true for women and young people. Because of its low entrance barrier, Direct Selling is proving to be a viable option for building economic stability, as the data show. It offers people searching for a supplemental income during difficult times the opportunity to become micro-entrepreneurs and active gig economy participants, making it an appealing and flexible income option.
What is next for the industry?
Companies that provide health and wellness goods saw a large rise in sales as a result of the pandemics increased awareness and personal health concerns. With $64.8 billion in global direct sales, these items grabbed the lead. This pattern is expected to continue in the next years.
