EU – Baltic States, Markets and Companies, Retail

In Estonia the volume of direct sales declined by 15%, in Lithuania – 19% and in Latvia – 29% and was respectively 13, 25 and 20 million euro, while the number of direct sellers in Estonia increased by 5% and it reached 21 thousand people, in Lithuania more than 8% up to more than 31 thousand of people and in Latvia by 9% up to 24 thousand of people.

Lower volumes of sales mostly depended on the overall economic situation and diminished consumption, but in Lithuania and Latvia political decisions and risen fees had a strong influence on it too. Evaluating that all non-food retail market has decreased about 25% in the Baltic States, whereas some of the goods and services even more, direct selling companies have managed to suppress the decline of sales relatively successfully.

"Despite the slow stabilization of sales, the Baltic direct selling markets have high growth potential in perspective, that’s why a more rapid recovery than in the total retail market is expected, however we may have to wait the growth until the second half of the year and it will not be as high as it was before the economic crisis", – says the General Secretary for Baltic States Gintautas Zaleckas.

“The growth of number of direct sellers working in direct selling business can be explained that when people are in the lack of money they start looking for additional employment opportunities more actively. Some of them are discovering direct selling as a flexible income earning opportunity to supplement their household income, –  says G.Zaleckas. – However, it must be acknowledged that the Governments in Baltic States could encourage entrepreneurship and self-employment much more”.

According to the data of European Federation of Direct Selling Associations (FEDSA), in the EU countries direct selling companies‘ annual turnover (without VAT) amounted to almost 13 billion euros in 2008, and direct selling companies give possibility of additional earnings to more than 4 million people.

According to the data of World Federation of Direct Selling Associations (WFDSA), the turnover (excluding VAT) of the direct selling companies belonging to the federation amounted to 114 billion USD, whereas direct sellers' number reached 65 million people.

Direct selling for 85% of the people involved in this industry is a source of additional earnings and even 80% of representatives involved in this business are women.

Direct selling is the marketing of consumer goods and services directly to consumers on a person-to-person basis, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations.

Direct Selling Associations in Baltic States founded in 2002, they are the members of the European Federation of Direct Selling Associations (FEDSA) and of the World Federation of Direct Selling Associations (WFDSA). The Associations brings together the largest direct selling companies operating in the region: Avon Cosmetics, Eastcon AG, GNLD International, Herbalife and Oriflame.