The study, Global Cosmetics and Toiletries, reveals that direct sales represent about 10% of the $150 billion world market for cosmetics and toiletries. This hard-to-track channel is a key sales venue for developing countries. Channel growth outpaced growth of the global cosmetics and toiletries market as a whole, which advanced by about 4% in 2004.
China led the way for growth with a 64.5% increase in manufacturers’ sales from 2003 to 2004. The reason for this expansion is that the traditional channels of distribution are not as evolved as other parts of the world. And with the ban on direct sales now lifted in China, this high rate of increase is expected to continue. Other countries where Kline noted robust growth in direct sales include Brazil, Russia, Argentina and India.
Another notable aspect of the global direct sales channel for beauty products is that the vast majority of companies participating are local players. With the exception of Avon––the world leader in direct sales for the beauty industry––most other direct selling companies generate the majority, if not all, of their sales in their home country. More info: www.klinegroup.com.