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Last year the total retail sales of direct selling industry in Latvia increased by a record 10.1 percent up to 75 million EUR (excluding VAT). Meanwhile, the number of people cooperating with direct selling companies increased by 2 percent and amounted to more than 64 thousand persons.

“Last year direct selling companies and their sellers successfully adapted to the new reality, while the quarantine constraints encouraged to move the sales to the virtual space. This allowed the industry to adapt well to the changing needs and purchasing habits of consumers, and more efficiently use the available digital tools – mobile applications, websites, social networks,”- comments Gintautas Zaleckas, General Secretary for the Baltic Direct Selling Associations.

According to G.Zaleckas, during the quarantine the sellers of direct selling companies became more active in using social networks, in organizing consultations and product demonstrations virtually. This provided additional opportunities not only to consult and serve existing customers, but also to find the new ones. Meanwhile, the necessity to work from home and declining regular incomes have led some people to discover direct selling as a flexible extra income or even as an opportunity for their own business. This trend was most pronounced in the second half of the year and was particularly noticeable in the last quarter.

As a result of the coronavirus pandemic, people were putting more attention to their health, so the demand and sales of wellness products increased the most between the different product categories, which are sold by the direct selling companies. This trend continues this year as well.

Comparing the Baltic countries, in 2020 the volume of direct sales in Lithuania grew by 9,3%, and in Estonia – by 2,8% and respectively amounted to 96 and 51 million Euros. The number of persons cooperating with direct selling companies increased by 1,2% in Lithuania, while in Estonia it decreased by 3,5% and respectively amounted to 84 and 42 thousand people.

Facts and figures:

In 2020, the total retail sales of direct selling industry in the Baltic States reached almost 222 million euros, while the number of people involved in direct sales was almost 191 thousand.

According to the European Direct Selling Association Seldia (Seldia), in 2020 the total turnover of direct selling companies in EU was more than 27.3 billion euros. Direct selling companies created opportunities for additional income or private business for more than 6.6 million people.

According to the World Federation of Direct Selling Associations (WFDSA), in 2020 the total turnover of direct selling companies globally was 179.3 billion USD, and the number of people involved in direct selling was more than 125 million, of which 65 million are entrepreneurs who develop their individual business on a full-time or part-time basis.

For 85% of people involved in direct sales direct selling is a source of additional income, and 78% of those are women.