Data Projects That the Direct Selling Market is Set to Grow Due to Developing Regions and Growing Middle Class
FinancialBuzz.com News Commentary
NEW YORK, April 2, 2018 /PRNewswire/ --
According to Qnet, the direct selling market is projected to grow. This industry provides companies with an alternative sales channels for distribution of products and services directly to customers or bypassing traditional retail businesses. The industry uses a variety of distribution methods, including multilevel marketing and network marketing. The growth of direct selling is attributed to an emerging middle-class market, technological innovations and a relaxing of restrictions. A strategy briefing by the market research company Euromonitor International indicates that the global direct selling market will record an estimated 11.5 percent growth by 2021, driven by developing regions. Direct selling market is relevant in many segments including wellness, beauty, home care products, and traveling. Sharing Services, Inc. (OTC: SHRV), JRjr33, Inc. (NYSE: JRJR), Avon Products, Inc. (NYSE: AVP), Tuniu Corp (NASDAQ: TOUR), Yatra Online Inc (NASDAQ: YTRA)
Tim Barret, senior retailing analyst at Euromonitor International, explains, "There is positive correlation between an underdeveloped retail market and the size and growth of direct selling within that region. Direct selling not only operates as a source of income for some individuals in these communities, but as a source of everyday products for others. Business has the power to change lives, and direct selling more often than not seeks to exploit this potential through its network-centric business model. Improving lives and supporting friends and family will never go out of fashion. However, the way communities are organizing themselves is changing and while the internet will not be a harbinger of doom to direct sellers, it will become a key differentiator."
Sharing Services, Inc. (OTC: SHRV) on March 26th the company announced breaking news that, "revenues for the quarter of $960,000, representing a corporate milestone. "Only three months after bringing our products to market, we are pleased to report the achievement of revenues of approximately a million dollars," stated CEO John "JT" Thatch. "We attribute this landmark achievement to the execution of our team members and their determined commitment to delivering a proper mix of products and services to the marketplace."
Sharing Services, Inc., continues to gain traction in the direct selling industry, where the Company owns, operates or controls an interest in several companies that offer products and services ranging from health and wellness, energy, technology, insurance services, training, media and travel benefits.
In recent months the Company has implemented several actions to support its pursuit of international expansion, including a new corporate headquarters to accommodate growth and a joint-venture agreement to market its Elepreneur Brand and products in Asia. Moving forward, the Company anticipates continued momentum and brand building on a global scale."
Robert Oblon, Chairman of Sharing Services, added, "We look forward to continued growth and increased revenues as Sharing Services, Inc., progresses in offering innovative products and services through direct-selling distribution channels. Our next goal, which we anticipate achieving this year, is to create a presence in the global markets.""
JRjr33, Inc. (NYSE: JRJR) is a growing platform of direct-to-consumer brands. Within JRJR Networks, each company retains its separate identity, sales force, product line and compensation plan, while JRJR Networks seeks synergies and efficiencies in operational areas. JRJR Networks companies currently include The Longaberger Company, a 42-year old maker of hand-crafted baskets and other home decor items; Your Inspiration At Home, an award-winning maker of hand-crafted spices and other gourmet food items from around the world; Tomboy Tools, a direct seller of tools designed for women; Agel Enterprises, a global seller of nutritional products in gel form as well as a skin care line, operating in 50 countries; Paperly, which offers a line of custom stationery and other personalized products; Uppercase Living, which offers a line of customizable vinyl expressions for display on walls in the home; Kleeneze, a 95-year old UK-based catalog seller of cleaning, health, beauty, home, outdoor and a variety of other products, and Betterware, a UK-based home catalog seller.
Avon Products, Inc. (NYSE: AVP) is a globally recognized leader in direct selling of beauty and related products. Avon products include well-recognized and beloved brands such as ANEW, Avon Color, Avon Care, Skin-So-Soft, and Advance Techniques sold through nearly 6 million active independent Avon Sales Representatives. On February 15, 2018, the company announced its results for the fourth quarter and fiscal year ended December 31, 2017. Total revenue for Avon Products, Inc. was relatively unchanged at $1.6 billion and declined 2% in constant dollars for fourth quarter of 2017. Jan Zijderveld, Avon CEO, said, "I am excited to be joining such a special business at this important chapter in the company's history. Very few brands have Avon's brand recognition, extensive global reach and operate in attractive beauty channel categories. In a world where trust in companies is becoming a scarce commodity, our Representatives' relationships with their consumers has never been more relevant or compelling."
Tuniu Corp (NASDAQ: TOUR) an online leisure travel company in China that offers a large selection of packaged tours, including organized and self-guided tours, as well as travel-related services for leisure travelers through its website tuniu.com and mobile platform. In the recent press release Ms. Maria Yi Xin, Tuniu´s Chief Financial Officer, said, "For the full year 2017, Tuniu´s net revenues increased by 53.3% year-over-year while gross profit increased by 80.9% year-over-year. Tuniu has lowered overall user acquisition costs through the expansion of its sales network and improved online content. We have also improved product margins through direct procurement and local tour operators, and continue to offer more choices to our customers through our destination-based products. Combining these elements, we are able to optimize the lifetime value of customers on Tuniu."
Yatra Online Inc (NASDAQ: YTRA) online travel company located in India, announced earlier in January its unaudited financial and operating results for three months ended December 31, 2017. Dhruv Shringi, Co-founder and CEO. Explained, "We delivered yet another solid quarter of results with revenue less service cost growth at 45.6% year-over-year. Our multi-channel approach and the resultant symbiotic relationship between our corporate and consumer direct businesses continues to deliver well for us. We have taken great strides on our technology platform for both our retail and corporate customers. This is an exciting time for Yatra, as we believe the combination of strong economic growth and consumer demand at the macro level and our own unique approach at the company level will help us maintain a strong growth rate over the longer term. "
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