Direct Selling in Asia encompasses a wide variety of markets that make it a fascinating field. As one of the most storied and historical marketplaces in the world, so it should come as no surprise that it is also home to one of the world’s most vibrant Direct Selling markets. According to the World Federation of Direct Selling Association’s (WFDSA) 2016 annual report, the Asia-Pacific region was home to 46-percent of all global sales. From Japan’s well-established market to the emerging one of China, the region is one worth watching.
“According to the World Federation of Direct Selling Association’s (WFDSA) 2016 annual report, the Asia-Pacific region was home to 46-percent of all global sales”
The Japan Direct Selling Association was established in 1980 and has helped chart the success of the channel in a country full of cautious and quality conscious consumers. Current market statistics show 3.3 million sellers doing $14.6 billion worth of trade in 2015, which accounted for 8-percent of global direct sales for the year. Six of the leading direct sales companies in Asia are headquartered in the country. Leading products include cosmetics, personal care, wellness and household goods. Nearly 80-percent of Japan’s direct sellers are women who do 94-percent of their business via person-to-person sales where trust is paramount for success.
Trust is also integral in China, where the field of opportunity is nearly as wide and broad as the country itself. The first seeds of Direct Selling took root in 1990 and quickly blossomed. By 2015, China ranked second only to the United States with $35.4 billion in sales and experts expect this to continue. They point to Direct Selling’s ability to get products out to lower tier cities where shops and products may be harder to find. It also provides an outlet for middle range products – those priced somewhere between designer brands and the lowest range of cheap goods – that are locally made. Popular products focus on beauty and wellness, often combining traditional Chinese ingredients with cutting edge science.
“By 2015, China ranked second only to the United States with $35.4 billion in sales and experts expect this to continue”
Another powerful player in Asia, Korea ranked third in the WFDSA’s 2015 Global Top Ten Direct Selling markets. The country’s 6.7 million sellers garnered $16.8 billion in sales and fueled a 12.7-percent growth rate. The majority of products focus on beauty, wellness, and personal care. More than half of those engaged in Direct Selling are women who do nearly 75-percent of their work person-to-person basis. As Korean Direct Selling companies make inroads in neighboring countries, it proves the increasing strength of the channel in the region as well as the country.
“As Korean Direct Selling companies make inroads in neighboring countries, it proves the increasing strength of the channel in the region as well as the country”
As leaders in the region, Direct Selling in Japan, China, and Korea represents exciting new opportunities for customers, direct sellers, and Direct Selling organizations. The future for them and Asia promises to be an exciting one.