Every business should be concerned about market saturation. The direct selling industry is no different.
The direct selling industry thrives on marketplace competition in order to continue to deliver high-quality goods and services, especially as the population grows and consumer demands change.
In one significant legal case, regulators argued that a direct selling company was bound for failure by the prospect of saturation in the marketplace, both for product, as well as for distributor recruitment. In that landmark case, the court took notice of the concept of “saturation,” but it rejected the concept as an obstacle to success of the particular direct selling company involved. The court took note of a large market for particular products and explained that the direct selling company was merely taking its place in the competitive marketplace.
The direct selling industry has always been a major player in the cosmetics and skincare industries. Two of the world’s largest sellers of cosmetics and skincare are Avon and Mary Kay. To those who speculate that the market is saturated, industry experts suggest that one visit any major department store in the U.S., all of which often devote an entire section of the first floor to cosmetics, skincare, toiletries, perfume, etc. It is suggested that, when those first floor displays of high-margin, branded products disappear then perhaps it is time to start considering whether direct selling opportunities are saturated in the marketplace.
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