"Direct Selling in Mexico" Published

In 2015, direct selling posted current value growth of 4%, a performance largely in line with that of the previous year. One factor preventing the stronger growth of the channel was the aggressive strategies of store-based retailers, which are posing an increasing threat to direct sellers. Modern grocery retailers in particular face a very competitive environment which has led to aggressive price wars in a number of categories, including beauty and personal care. This is impacting direct sellers, mainly those targeting lower-income groups, including Avon and House of Fuller. Nowadays, modern grocery retail outlets such as Walmart Supercenter and Bodega Aurrera are offering products at similar prices to direct sellers while also benefiting from being able to cater for consumers immediately rather than them having to wait several days for their order, as is typical under the direct selling model. Modern grocers’ rapid geographical expansion also represents a challenge to direct sellers. Consumers in areas underserved by bricks-and-mortar retailers have traditionally viewed direct selling as a convenient option for buying beauty and personal care products but as store-based retailers expand into smaller towns, consumers are switching to these more convenient options.

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Competitive Landscape

In 2015, Danone de México SA de CV continued to lead direct selling thanks to the strong position of its Bonafont water brand. Bonafont held a 12% share of value sales, competing directly with the Ciel (Coca-Cola) and Electropura (Electropura, a PepsiCo subsidiary) brands. These companies are active in supplying garrafones, which remains a key part of the food and drinks direct selling category.

Industry Prospects

Over 2015-2020 direct selling is expected to post a value CAGR of 2% at constant 2015 prices, this being in line with the performance of the wider retailing industry. This reflects the relevance that direct selling will continue to have for a number of consumers, either due to the convenience of receiving food and drink at home or the cultural preference for shopping through a sales agent who in most cases is a friend or an acquaintance.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Mexico with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Direct Selling industry in Mexico, our research will save you time and money while empowering you to make informed, profitable decisions.

The Direct Selling in Mexico market research report includes:

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