Upward trend in direct selling should remain stable for the future, report

By Andrew McDougall

- Last updated on GMT

Related tags Europe Cosmetics

Direct selling in Europe could hold the key to riding out the recession for those cosmetic companies involved as a new report highlights the upward trend that is expected to last the course.

Market research firm yStats.com released its 2011 report documenting that a solid performance, particularly in the French and German markets, has seen many companies post a positive outlook despite the challenging economic situation.

In 2011, France and Germany generated the highest revenue in European direct selling, while Russia employed the highest number of staff in this sector.

Cosmetics and personal care products, along with household goods are the most popular product categories in Europe for direct selling.

Mass product potential

Forecasts for 2012 predicted that in Poland especially companies selling mass products such as cosmetics and fashion would be successful.

In 2011, Russian direct selling revenue increased by a one-digit percentage figure compared to the previous year and in Ukraine direct selling revenue grew steadily too.

According to yStats.com, an upward trend can also be observed in the Baltic States. In 2011, the top product categories in Norway, as well as in Turkey, were cosmetics and skin care products.

The report also singles out companies who have done well in particular markets. For example, Yves Rocher is highlighted for its strong performance in Switzerland.

Special mention

Despite profits falling massively this year​, Avon Products is also singled out as the top cosmetics performer in Europe having generated the highest direct selling revenues.

The "Europe Direct Selling Report 2012" also shows that Mary Kay ws very successful, too, with operations in 15 European countries and more than 24,000 cosmetics sellers in 2011 in Germany alone.

Other companies featured in the report include Oriflame, Natura Cosmeticos, Nu Skin, AmorePacific, and Menard Japan Cosmetics.

“Overall, a slight upward trend can be seen in European direct selling, which is expected to remain stable in the future,”​ claims yStats.com.

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