New Study: Direct Selling in Saudi Arabia

Direct selling is coming under intense pressure from other non-store retailers, which is hampering its growth. Current value growth reached 12% in 2015, compared with the CAGR of 15% observed during the review period. Also, the strong growth of store-based retailers, as they continue to expand geographically, has made it more convenient for customers to purchase products in stores, whether it is food and drinks or beauty and personal care products. Direct selling operators, however, are trying to fight off the competition by utilising the latest technologies, such as the internet and social media, to advertise and communicate their products to consumers, and are also investing in effective after-sales service.

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Competitive Landscape

Al Manhal Water Factory led direct selling in 2015. The company’s flagship brand Nestlé Pure Life enjoys strong loyalty amongst consumers. The company benefits from a world-class distribution system, and its network is spread across the country, supported by its GBO Nestlé. Ease of ordering through phone and mobile messaging and highly reputable after-sales service have helped the company to maintain its position strong in a highly competitive market.

Industry Prospects

Direct selling will continue to see intense competition from store-based retailing, which is much larger and continues to thrive, with new outlets opening every year. Several shopping malls are being planned or are under construction, which will give further competition to direct selling. However, growth will be maintained, as direct selling companies seek to fight off the competition through the usage of appropriate strategies such as the utilisation of digital media, as well as unique new product development. Avon Products has already been active in such activities. Similar activities are expected from other players in the future.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Saudi Arabia 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 Saudi Arabia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Direct Selling in Saudi Arabia market research report includes:

* Analysis of key supply-side and demand trends
* Detailed market shares for international and locally-based retailers
* Historic values, company and brand market shares
* Five year forecasts of market trends and market growth
* Robust and transparent market research methodology, conducted in-country



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