The top players in the Germany direct selling market in 2012, all with value shares of around 10%, continued to be Vorwerk Deutschland Stiftung, Tupperware Deutschland and LR Health & Beauty Systems. All three have a long history in Germany, comparatively good awareness and reputation, and quite large sales teams.
Party plan remained the most familiar format of direct selling in Germany in 2012. Home parties particularly appeal to women of middle-age and over in small and mid-sized towns. It is an opportunity to meet friends or neighbours, as well as to get to know new people. Home parties drive sales in direct selling, whilst traditional door-to-door sales are still declining, impacted by a negative image; perceived as rather annoying.
Over the forecast period to 2017, direct selling is expected to see a further decline, with a negative CAGR of 2% in constant value terms, with sales expected to reach €2.3 billion; down almost €200 million compared with 2012. There are many different factors responsible for this rather bleak outlook, but mainly the growing importance of the internet, in combination with the price-sensitivity of many Germans, are the key barriers to success.
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