France direct selling market: Toupargel leads despite declining share of industry

Press Release   •   Jul 17, 2013 14:46 BST

Toupargel SAS continued to lead the France direct selling market in 2012, with a 14% share of value sales. Specialised in frozen food, Toupargel benefits from a strong and well established image as the company has been present in France for over 40 years. That said, Toupargel was the direct selling player to see the strongest decline in 2012, suffering from the competition from grocery stores on the internet, but the company also had difficulty retaining its current customers as well as building customer loyalty. The launch of its online store in 2010, which also allows consumers to order online, also cannibalised the direct sales of the company.

High unemployment as well as the poor economical context in the country led many French citizens to look for alternative ways to earn money or to earn extra money. As a result, many French entered direct selling as salespeople in 2012 in order to boost their incomes; a trend that contributed to the expansion of the direct selling network in the country.

In an uncertain economic environment, which is also likely to see rising unemployment, direct selling is expected to continue to expand in France as it will become increasingly appealing to existing customers who want to earn extra income to join direct selling. Sales through direct selling in France are expected to post a 1% CAGR in constant value terms over the forecast period, a slower growth when compared to the review period which can be explained by further declining purchasing power.

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