Sales parties and visits to representatives have long been taboo in the corona crisis. Direct sales nonetheless increased its sales. And the industry has great expectations for the current year.
Corona year 2020 was actually not a good time for companies that sell their goods directly to customers: Because the industry-typical sales parties and visits to representatives often had to be canceled due to the pandemic.
Nevertheless, the direct sales industry was able to increase its sales in the past year by around one percent to 18.7 billion euros, according to a study published on Saturday by the University of Mannheim on behalf of the Federal Association of Direct Sales Germany (BDD).
The slight growth was “an unbelievable success” when you consider how severely direct sales were affected by the restrictions on personal advice, judged study author Florian Kraus.
The industry sees the main reason for its success in the digitization surge that it experienced during the pandemic. “Many companies have successfully relied on online parties in sales and on the exchange on social media and thus enabled customers to receive personal advice even during the lockdown,” said the BDD CEO, Jochen Acker. According to the study, around two-thirds of companies contacted their customers via social media during the pandemic and 59 percent used online parties in sales.
Household goods, energy and telecommunications services, clothing, accessories and wellness products were particularly in demand during the pandemic. The industry is confident about the future. According to the study, the companies are expecting sales growth of 12.1 percent for the current year. The industry is emerging “stronger from the crisis,” said Acker.
In 2020, 911,000 people were working as sales partners in the direct sales industry in this country, around 20,000 fewer than a year earlier. The best-known direct sales companies include the household appliance manufacturer Vorwerk and the plastic box company Tupperware. Other examples are the diet products provider Nahrin and the cosmetics company Younique. According to the study, sales in the industry have increased by around 50 percent since 2011.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
