2023-12-19 20:15:02
The cosmetics and personal care sector dominates 42.7% of direct sales (made through entrepreneurs or independent distributors) in Brazil. This is what reveals a field research carried out by the company CVA Solutions and published by ABEVD (Brazilian Association of Direct Sales Companies).
Another striking fact concerns the profile of professionals who work in this business model: 60% are women and 79.5% are aged 18 to 40, according to ABEVD.
This is one of the reasons that may explain why cosmetics are in first place in the ranking, says Wanderley Pereira de Melo, entrepreneur and independent distributor in the direct sales market.
“Many women identify with continuous use products, which also bring a great opportunity for penetration into other segments”, says the expert. Perfumes, nail polish, makeup and moisturizers are some of the items sold in this area.
The clothing and accessories (18%) and health and nutrition (10%) sectors occupy second and third place in the ranking, respectively. ABEVD also cites the data that direct sales in Brazil had revenues of approximately US$7.6 million (around R$37 million, at current prices) in 2022. The value places the country in seventh position in the world among largest markets.
In Melo’s analysis, this business model has great growth potential and is advantageous for people with different profiles. “The most interesting thing is the high gains that direct selling provides. Another advantage is that you can personalize your service and, most important of all, face-to-face, face-to-face service. You can promptly serve the customer and deliver the product by hand.”
The benefits also include flexible working hours, reduced operational costs and ease of gaining customer loyalty. However, despite the business modality being present in the Brazilian market since the end of the 1970s, Melo believes that it is still “just beginning” and has a lot to develop.
Challenges for the direct sales market
One of the challenges faced is training. According to the expert, many enter the field without properly preparing. It is common for people to refuse the training that most companies offer to entrepreneurs and independent distributors.
There is even a view that direct sales would be just a “side job”, that is, a smaller and temporary business model. The strength of the market in Brazil and other countries shows the opposite, explains Melo.
“In fact, many households around the world have 100% of their bills paid through this work. It is an area with huge opportunities and many chances of success. Direct sales, for me, are the best option for making dreams come true”, he concludes.
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