Last year the retail sales of the members companies of the Lithuanian Direct Selling Association (Lithuanian DSA) increased by a record 11.2 percent up to 42.3 million EUR (excluding VAT). Meanwhile, the number of people cooperating with direct selling companies increased by more than 2 percent and amounted to almost 46 thousand persons.
“Last year direct selling companies and their sellers successfully adapted to the new reality, while the quarantine constraints encouraged to move the sales to the virtual space. This allowed the industry to adapt to the changing needs and purchasing habits of consumers, more efficiently use the available digital tools – mobile applications, websites, social networks,”- comments Gintautas Zaleckas, Director and General Secretary for the Baltic States of Lithuanian DSA.
“Last year direct selling companies and their sellers successfully adapted to the new reality, while quarantine constraints encouraged to move the sales to the virtual space.”
According to G.Zaleckas, during the quarantine the sellers of direct selling companies became more active in using social networks, in organizing consultations and product demonstrations virtually. This provided additional opportunities not only to consult and serve existing customers, but also to find the new ones. Meanwhile, the obligation to work from home and declining regular incomes have led some people to discover direct selling as a flexible extra income or even as an opportunity for their own business. This trend was most pronounced in the second half of the year and was particularly noticeable in the last quarter.
As a result of the coronavirus pandemic, people were putting more attention to their health, so the demand and sales of wellness products increased the most between the different product categories, which are sold by the direct selling companies. This trend is expected to continue this year as well.
Comparing the Baltic countries, in 2020 the volume of direct sales in Latvia grew by 12%, and in Estonia – by 4% and respectively amounted to 30.1 and 20.7 million Euros. The number of persons cooperating with direct selling companies increased by 2% in Latvia, while in Estonia it decreased by 4% and respectively amounted to 35 and 23 thousand people.
Facts and figures:
In 2020, the sales volumes of the members of the Baltic Direct Selling Associations exceeded 93 million Eur. The number of direct sales consultants overpassed 104 thousand persons.
According to the European Direct Selling Association-Seldia (Seldia), direct sales in EU countries amounted to more than € 30.3 billion (excluding VAT) in 2019, while direct selling companies provided additional earning opportunities to more than € 6.9 million people.
According to the World Federation of Direct Selling Associations (WFDSA), in 2019 direct sales amounted to almost 180.5 billion USD (excluding VAT), and the number of people cooperating with direct selling companies exceeded 119 million people.
For 85 percent of people engaged in direct selling this is a source of additional income, while 88 percent representatives involved in this business are women.