July 13, 2017
WFDSA Announces 2016 Global Retail Sales of $182.6 Billion
The World Federation of Direct Selling Associations (WFDSA) recently announced that global direct sales in 2016 increased 1.9 percent, from US $179.2 billion in 2015 to $182.6 billion in 2016, a new global record.
The data gathering was compiled through local DSAs, their member companies, members of the Global Research Subcommittee and outside third-party vendor Nathan Associates.
Highlights from the announcement include:
- The global growth was driven by increases in all regions. As well, 81 percent of countries around the world showed sales increases.
- Not only was there year-over-year growth, but the direct selling channel has shown sustained growth with a 3-year compound annual growth rate (CAGR) of 5.2 percent (2013–2016).
- The story of sustained growth over time can be told in all regions:
Asia-Pacific, which accounts for 46 percent of global direct sales, shows a 3-year CAGR of 6.7 percent for the period from 2013 to 2016.
The Americas, accounting for 33 percent of global sales, shows a 3-year CAGR of 3.3 percent.
Europe, with 20 percent of global sales, has a CAGR of 4.9 percent.
And Africa-Middle East, at about 1 percent of global sales, has a CAGR of 6.0 percent.
Sales were generated by the world’s 107 million independent representatives, another record. These are the career-minded entrepreneurs who build their own businesses marketing the products/services of a direct selling company, as well as the part-time micro-entrepreneurs who earn extra income by doing so. This salesforce of independent representatives was up 3.1 percent year-over-year.
- Accounting for 80 percent of global sales are the world’s Top 10 direct selling markets: United States, China, Korea, Germany, Japan, Brazil, Mexico, Malaysia, France and United Kingdom.
- Direct selling shows success in both advanced and developing economies: Of the Top 10 markets, six are advanced economies and four are developing economies, according to the International Monetary Fund.