Key Socio-Economic Facts About Some Large Direct Selling Markets – Peru

A recent survey from CAPEVEDI gives some great insight into the world of Direct Selling in Peru.

PERU – Industry Overview

  • Direct selling in Peru has a larger participation in the market than the retail channel, which is around 54%, and provides significant economic and social contributions for more than 350,000 independent entrepreneurs and their families.
  • For consumers, they buy through direct selling because they know the independent entrepreneur; the product has good quality and confidence. For direct sellers, it provides the opportunity to have another source of income and the opportunity to have their own business, buy products at lower prices for themselves, and the minimum investment to enter. It also enables prizes, which is a highly valuable benefit to many people.
  • In Peru, the direct selling is a large, growing and unique industry that offers a wide variety of products, but the best sellers are: personal care (68%), cosmetics (49%), skin care (40%) and jewelry products (28%).

Benefits to Consumers

  • In Peru, the consumers considers the following to be benefits or working with a direct seller.  They know the independent entrepreneur, the products are good quality, trust, affordable prices, don’t need to leave the home/office, can buy anytime and personalized service.
  • The usual consumers for direct selling are people from 25 to 39 years and 59%  are women.

Size of Industry

  • Direct selling is a growing industry in Peru and is also rapidly expanding into other areas.
  • Members of CAPEVEDI are national and global companies: Unique, Avon, Belcorp, Natura, Herbalife, Oriflame, Dyclass, Leonisa, Dupree, 4life, Forever Living, Swissjust and Tahitian Noni.
  • The direct sales industry in Peru represents around $1,167,000 in 2011, providing the opportunity to be part of the “Million Club of Countries” in direct sales.

Economic/Fiscal/Social Contributions

  • Direct selling contributes significantly to the Peruvian economy both financially and in terms of quality of life.  Direct selling companies make capital investments, fund research and development, and pay taxes.
  • It provides wages/salaries to direct selling company employees, and rebates/commissions/compensation to its self-employed direct sellers (around 350,000 independent entrepreneurs).
  • In Peru, according to our market research, 90% of direct sellers are women (67% age 40 or more), and the majority are married with an average or five people in the household.
  • Many people in the age group 40+ recognize the benefits of direct selling and the entrepreneurial opportunity it offers with financial independence and development beyond the “official” retirement age.
  • Direct sellers are generally pleased with their experience in the industry.
  • 90% described themselves as either “very satisfied” with direct selling activities.

Conclusion

  • The Direct Selling industry’s contributions to Peruvian families and the Peruvian economy are significant and important. The industry provides much needed employment and many people over 40 years benefit from this kind of business, improving their quality of lives and providing incomes to their families.
  • Economic contributions of jobs, personal income, investment, and taxes can be quantified and shown to have a positive overall economic impact (350,000 independent entrepreneurs).  Equally as important is the recognition of the outstanding social contributions that are made to communities as well as individual families’ lives and well-being.