Boston, MA -- (SBWIRE) -- 06/09/2014 -- Direct selling continues to struggle with import barriers, which were strengthened during 2012 and continue to negatively impact sales. For some leading brands, this translated into a contraction in net income in constant terms during the first quarter of 2013, thus driving companies to substitute imports with local production for selected products, yet substituting for no more than 40% of total sales.

Competitive Landscape

Cosmeticos Avon SACI continues to lead direct selling in Argentina, recording sales of ARS2.5 billion in 2013 and a value share of 15%. Avon is a well-established direct selling brand in Argentina and has earned the trust of Argentinean consumers, with the company now having a large consumer base. Avon offers a very wide range of products at competitive prices and its many endorsements contribute to the confidence which consumers have in its products.

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Industry Prospects

Despite a slowdown in economic activity, direct selling sales are expected to continue growing, albeit at lower rates than those seen during the review period. Direct selling has a projected forecast period value CAGR of 3% in constant 2013 price terms, with products in this area being more flexible and able to adapt to contracting consumer purchasing power as a result of accelerating inflation. Given the wide range of products and lower average prices in the direct selling channel in comparison to store-based retailers, the direct selling channel is expected to capture a higher base of consumers down trading from store based retailers if purchasing power continues to shrink.

Report Overview

Discover the latest market trends and uncover sources of future market growth for the Direct Selling industry in Argentina with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Direct Selling industry in Argentina, our research will save you time and money while empowering you to make informed, profitable decisions.

The Direct Selling in Argentina market research report includes:

- Analysis of key supply-side and demand trends
- Detailed market shares for international and locally-based retailers
- Historic values, company and brand market shares
- Five year forecasts of market trends and market growth  
- Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

- Who are the leading retailers in Argentina?
- How important is direct selling in Argentina?

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