THE INDUSTRY OF DIRECT SALES
CO-WINTER 2010
A dynamic segment of our economy with 1.3 million Canadian workers associated with it, direct sales boasted a vigorous 25% growth in the last two years – from $1.57 to $1.96 billion – and sustained a 10% to 20% increase over a decade. As a delivery channel, because direct sales isn’t restricted by a permanent retail outlet, consumers can access hundreds of product choices:
• food and nutritional products
• cosmetics and skin care products
• clothing
• candles
• jewelry
• toys and educational items
• telephone and Internet service
Certainly, while non-store retail is common (catalogues, Internet sales, etc.), direct selling is the only personalized, interactive channel. And, for many who can’t find what they need in local stores, or don’t have Web access – 26% of direct selling consumers live in rural areas and 13% are over 65 in age – direct selling brings them goods they might not otherwise find.
Of the 60+ companies in Canada’s robust direct sales industry, more than 2/3 are DSA members, including global firms with household names such as Avon, Mary Kay, Nu Skin, Quixtar, Shaklee, and Canada-based companies like Epicure Selections. The DSA also represents more than 600,000 Independent Sales Contractors (ISCs) whose sales were more than $1.96 billion.
INDUSTRY STATS
The direct sales labor pool — 3,900 permanent employees and 1.3 million direct sellers — represents a significant economic impact in Canada. In a recent SocioEconomic Impact Study conducted by Ernst & Young on behalf of the DSA, it was estimated that, in addition to $966 million in direct revenue, almost half again - or $438 million - streams from indirect contributions of the direct selling industry, the spinoff as it buys from other Canadian companies (e.g. suppliers of merchandise, office supplies, shipping, etc.).
All this income helps to stimulate consumer spending. And, the combined contribution of additional tax payments was estimated at $716 million in 2003. When asked if they contribute money, goods or services to social programs, 89% of respondents said they contributed to human services and charities, and 20% of respondents contributed to education. In addition, direct sellers donated approximately $3.6 million to charitable causes in 2003 and again in 2004.
• food and nutritional products
• cosmetics and skin care products
• clothing
• candles
• jewelry
• toys and educational items
• telephone and Internet service
Certainly, while non-store retail is common (catalogues, Internet sales, etc.), direct selling is the only personalized, interactive channel. And, for many who can’t find what they need in local stores, or don’t have Web access – 26% of direct selling consumers live in rural areas and 13% are over 65 in age – direct selling brings them goods they might not otherwise find.
Of the 60+ companies in Canada’s robust direct sales industry, more than 2/3 are DSA members, including global firms with household names such as Avon, Mary Kay, Nu Skin, Quixtar, Shaklee, and Canada-based companies like Epicure Selections. The DSA also represents more than 600,000 Independent Sales Contractors (ISCs) whose sales were more than $1.96 billion.
INDUSTRY STATS
The direct sales labor pool — 3,900 permanent employees and 1.3 million direct sellers — represents a significant economic impact in Canada. In a recent SocioEconomic Impact Study conducted by Ernst & Young on behalf of the DSA, it was estimated that, in addition to $966 million in direct revenue, almost half again - or $438 million - streams from indirect contributions of the direct selling industry, the spinoff as it buys from other Canadian companies (e.g. suppliers of merchandise, office supplies, shipping, etc.).
All this income helps to stimulate consumer spending. And, the combined contribution of additional tax payments was estimated at $716 million in 2003. When asked if they contribute money, goods or services to social programs, 89% of respondents said they contributed to human services and charities, and 20% of respondents contributed to education. In addition, direct sellers donated approximately $3.6 million to charitable causes in 2003 and again in 2004.