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Boston, MA -- (SBWIRE) -- 06/18/2014 -- The busy lifestyles of Swedes act both for and against direct selling. On one hand, it offers consumer the opportunity of shopping in a less stressful environment, and on the other it is a time-consuming process compared to shopping online. However, the majority of Swedes perceive the direct selling process as time-consuming, with the price and quality of the products difficult to compare with similar ones, and the process is viewed as pressurised where the consumer is expected to purchase a product, As a result, internet retailing continues to grow at the expense of direct selling. A possible bright light for direct selling is the continued work of the Swedish direct selling association, which is lobbying for the unemployment fund to not instantly retract benefits from an unemployed person when he/she is trying to start up their own direct selling business.
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Lesley Cosmetics (Mary Kay) leads sales in direct selling with a retail value share of 16% in 2013. The company focuses solely on beauty and personal care products and only performs sales through direct selling. Mary Kay's products are considered to be of good quality in Sweden. Although they are pitched more at a premium level, they are attractive to consumers through more economical usage. Consumers do not specifically question Mary Kay's direct selling format, even though it is a multi-level marketing company. This is because the company hides this fact quite well. Moreover, consumers can also often find these products via their hair dressers, which despite actually being distributors, are actually perceived as a regular sales channel for these products among consumers.
The direct selling category is expected to decline further due to the fast-paced lifestyles of Swedes and the increased usage and growth of internet retailing. Swedes find it difficult to find the time to purchase through direct sellers and often still question the format in relation to pyramid schemes, while internet retailing instead offers quick purchases and deliveries and products that are easier to compare. Direct selling also needs products with high margins as a way of rewarding their distributors, a situation that will continue to be challenging with increased online and global competition.
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