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Direct Selling in Denmark

Denmark direct selling market: Tupperware Nordic & Nu Skin Scandinavia leading players during 2012

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2014-03-12 04:17:03 - Direct Selling in Denmark - a new market research report on

The Denmark direct selling market is a highly concentrated channel, with the top five players, namely Tupperware Nordic, Nu Skin Scandinavia, Nature´s Own, Herbalife Denmark and Amway Denmark, accounting for a combined share of 67% in value terms in 2012. In direct selling, well-known and well-trusted brands, as well as large networks of sales agents, are the key success factors which will drive consolidation in this troubled channel. Overall, over the review period the value share of "others" declined from 46% in 2007 to 33% in 2012.

Direct selling experienced a continued decline in 2012. The channel was severely affected by the economic crisis, as Danes cut their spending on non-basic, "nice to have" goods. The channel also faced increasing competition



from internet and store-based retailing, which are viewed as more trustworthy and convenient than direct selling. As these rivals adopted an anti-crisis strategy, with frequent discounts and a wider assortment of cheaper products, the position of higher-priced direct selling goods was significantly undermined.

The reputation of direct selling is likely to further deteriorate over the forecast period, as the mass media continues to search for headline stories about potentially inappropriate practices of the major players in the channel. Lower consumer trust, coupled with feeble economic recovery and the expansion of internet retailing, will result in the continuation of negative trends in direct selling. Nevertheless, selected companies which have gained a positive image through offering high-quality products and exercising honest business methods, such as Tupperware, are likely to sustain their financial performance.

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