Study Reaffirms Rise of C&T Direct Sales; Notes Avon’s Global Scope

According to a recent study by Kline & Company, global sales of cosmetics and toiletries through the direct sales channel rose to $15.4 billion in 2004, from $14.3 billion in 2003, representing approximately 10% of the $150 billion global market for cosmetics and toiletries.

China led the growth with a 64.5% increase in manufacturers’ sales from 2003 to 2004. Kline also noted robust growth in Brazil, Russia, Argentina and India. The study noted that Avon remained the world leader in direct sales for the beauty industry and one of the “few truly global players,” concluding that most other direct selling companies generate the majority of their sales in their home country.

"Natura is strong in Brazil and is now expanding to other regions,” said Carrie Mellage, industry manager for the Consumer Products practice of Kline's Research division. “And Jafra in Mexico; DHC, Pola, and Nu Skin in Japan; and Mary Kay and Proactiv in the U.S. are all key direct sales companies in their local markets but are relatively smaller players abroad.”

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