Avon Products continued to hold the leading position in the Australia direct selling market in 2012, with a 13% value share. As a pioneer in direct selling in Australia, the company enjoys substantial loyalty from consumers, due to its high quality products and focus on innovation. The Avon brand has been heavily advertised to stimulate interest amongst the target consumers, thereby creating new leads for its direct selling agents.
Online retailers are presenting a strong challenge to direct selling in Australia. With online retailing, consumers can access a wider variety of goods, and they appreciate the convenience offered by this channel, such as home delivery, and the fact that the shopping can be done a time that suits the consumer. In response, direct selling companies have launched online retailing options. This development shows the importance of a multichannel approach. Amway Australia Pty Ltd, for example, offers consumers the option of purchasing from its website.
The direct selling retail channel is expected to grow by a CAGR of 3% in constant value terms over the forecast period. This growth will be driven by the ongoing introduction of new and innovative products from companies such as Avon Products, and growth in the number of direct selling agents operating in Australia. Cost-conscious Australian consumers will appreciate the value proposition offered by direct selling, which bodes well for the direct selling channel.
For more information on the Australia direct selling market, please click here: Australia direct selling market
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