Baltic, Good for Business, Markets and Companies, Retail

In Estonia the volume of direct sales experienced the biggest growth by 19%, in Lithuania – 16% and in Latvia – 11% and was respectively 29.7, 36.45 and 26 million euro, while the number of direct sellers in Estonia increased by 5% and it reached 21 500 people, in Latvia by 4% up to more than 27 600 and in Lithuania more than 1% up to 30 600 people.

“Having in mind the fact that in the Baltic States economy growth rate last year was just several percent, while the total retail trade growth rate exceeded 10 percent just in Latvia, so the general 15% increase is really good figures for the direct selling industry. As it was expected the direct selling market is recovering more rapidly than the total retail market and once again confirms that direct selling business growth has really good possibilities in the future”, told BC the General Secretary for Baltic Direct Selling Associations Gintautas Zaleckas. 

According G.Zaleckas, such a big growth depended on the three reasons,- firstly, on the economy recovery, which creates more positive consumer opinions and increase their spending, secondly, because direct selling becomes more and more popular as a way of shopping. People appreciate the possibility to get personal advice from the direct seller and that in most cases they can try the product or if product doesn’t fit to change it with other and quickly get it at hands either it be at home or work place. Also new technologies significantly increased the effectiveness as due to the popularity of cell phones and the access to the Internet communication is possible at any place, at any time and in any form. Distributors can reach their clients and place orders 24 hours 7 days per week. While the last but not the least reason for growth of sales is the increase of number of direct sellers, who helped to generate bigger sales.

Facts and figures

According to the data of European Direct Selling Association-Seldia, the EU countries direct selling companies‘ total sales (without VAT) amounted to over 13,4 billion euros in 2011, and direct selling companies give possibility of additional earnings to more than 4 million people.

According to the data of World Federation of Direct Selling Associations (WFDSA), in 2011 the total sales (excluding VAT) of the direct selling companies belonging to the federation amounted to 132,5 billion USD, whereas direct sellers' number reached 91 million people.

Direct selling for 85 percent of the people involved in this industry is a source of additional earnings and even 80 percent of representatives involved in this business are women.

Baltic Direct Selling Associations are national voluntary not-profit trade associations of the leading firms that manufacture and distribute goods and services sold directly to consumers. The Associations members are: Avon Cosmetics, Amway, GNDL International, Herbalife, Lux,  NL Europe, Mary Kay, Morinda, Oriflame and Zinzino.