The rise of e-commerce and digitization boosts the direct sales in Spain. According to the latest data released by the Direct Selling Association (AVD), which groups together the main companies in the sector, sales grew by 9% to 765 million euros in 2020, with more than 15,000 daily orders. More than 80% of direct sales customers reach distributors through social media. In a market in which the boom in online stores continues to expand, the association assures that “more and more customers are opting for a return to more personalized attention when purchasing a product.” Social networks and the most personal contact through whatsapp or videoconference is gaining weight. The companies in the sector are those in which products and services are sold directly to the final consumer through a distributor. According to the latest census, the network of vendors groups together 258,739 independent professionals, which makes it possible to reach 5.7 million orders per year, with an average of 82 euros per order.
AVD is a non-profit organization that works to represent the interests of this sector and promote the direct sales model. Its associates include 22 companies in the cosmetics and personal care, nutrition and wellness, home equipment, fashion and accessories, jewelry, home care, telecommunications and culture sectors, among others. Brands that sell their products directly through their own media or general internet portals such as Amazon or Aliexpress are not integrated into this model. The formula is understood as the commercialization outside a commercial establishment of goods and services directly to the consumer through a personalized demonstration by a representative of the selling company. Avon is the typical company for this type of sale, but the association includes firms such as Mary Kay, Akeo, Amway, Captain Tortue, 4Life, One Telecom … Many of them are in the cosmetics sector.
Spain is one of the main markets for the development of this business model, occupying the sixth position in Europe in terms of turnover, also having a penetration of 31.5%. “This data highlights the enormous potential that direct selling can have if the necessary opportunities are given to reach the level of other countries in Europe,” says Gema Aznar, president of the AVD and CEO of Mary Kay.
The pandemic has prompted brands to adapt to the new situation and accelerate their digitization to achieve a hybrid operating model in which the presence of the deal and the support of digital tools coexist. Up to 25% of its sellers have adapted to the language and spaces of the internet, using social networks as the main marketing vehicle, or other platforms to develop the business (29%). Face-to-face meetings and home demonstrations still have a great weight, which now have their version in videoconference meetings.
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This digitization, accelerated by the covid, has allowed to achieve an increase in sales within this business model at a scale between 5% and 9% in 2020 depending on the product category. The categories that have led the dynamism of the market are those of home care (home care), nutrition and well-being, cosmetics and personal care, according to data from the AVD. Last year, an average of 302 new products were developed for direct sales, of which 29% were launches, 45% extensions and 26% innovations.
Young people (women and men) under 30 years of age account for 20% of the total commercial activity in the sector. Precisely, these benefits that attract young people are the same that make direct sales in a sector where inclusion and work-life balance are fundamental pillars of its philosophy, allowing each salesperson to adapt their professional career according to their needs. and attracting talent. 83% of the distributors are young women (under 40 years old).
Reference-www.elperiodico.com