In LatAm, Direct Sales Struggles In Face Of Multiple Challenges

Reach of direct selling in LatAm, traditionally its strongest market, is falling and now stands at a three-year low. Today, over 62 million households in the region buy from door-to-door reps but this is down from a high of about 64 million. Its popularity has been hit by the rise of convenience stores but especially drugstores that are proving the preferred channel for many consumers, notably 70% in Peru and 55% in Columbia. Investment in and reinvention of drugstores is capturing consumers – they can test and compare products in the store, pay by more options and get advice from instore advisors. Online is also taking share with consumers attracted by its range of products, price and convenience. Mary Kay is one player that is managing to buck the trend. Its investments to modernize, better reward reps and an online support channel have enabled it to grow penetration over 80% in the last three years.