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Direct Selling in Germany

Germany direct selling market: Key players include Vorwerk & Tupperware


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2014-02-03 00:31:04 - Direct Selling in Germany - a new market research report on companiesandmarkets.com

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.

Key Headlines

- Direct selling declines by 1% in current value terms in Germany in 2012, to reach €2.5 billion
- Direct selling continues to see problems due to the competition from other retail channels
- Within the main products sold through direct selling, beauty and personal care sees the best performance in 2012
- Vorwerk Deutschland Stiftung is the largest player in a rather fragmented competitive environment in 2012
- A further decline is expected for direct selling in Germany over the forecast period to 2017

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Author:
Mike King
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