Direct Sales Channel Sees Modest Growth Amid Economic Challenges

The direct sales channel in Germany has experienced a slight uptick in business, marking a notable trend in consumer purchasing behavior. According to recent data from the Federal Association of Direct Sales in Germany (BDD), the revenue generated from direct sales rose by 2.8% from 2022 to 2024, reaching a total of EUR20.9 billion. This growth, while positive, represents a significant slowdown compared to the 6.6% increase recorded in 2022 alone, which was largely influenced by recovery from the pandemic-related economic downturn.

Historically, the direct sales sector has demonstrated resilience, with previous years showing even higher growth rates. For instance, in 2019, the sector noted a 5% increase compared to 2018. The current analysis, which spans a two-year period, reflects a shift in reporting frequency from annual assessments.

As of 2024, the number of individuals engaged in direct sales across Germany stood at approximately 908,000, a figure that has remained stable since 2022. This consistency in workforce numbers suggests a steady interest in the direct sales model, which bypasses traditional retail avenues and allows companies to sell directly to consumers.

Despite the prevailing economic uncertainties, including inflation and geopolitical tensions, the BDD has expressed a positive outlook on these developments. The association emphasized that the direct sales model continues to thrive, demonstrating a robust capacity for resilience. Trust, personalized communication, and high-quality products remain key factors that drive consumer engagement in this sector.

Direct sales typically involve representatives visiting potential customers at home or other locations to showcase products and facilitate purchases. This method includes a variety of goods, from kitchen appliances and cosmetics to pet supplies. Innovations in the sector have also led to the emergence of online sales events and virtual product demonstrations, expanding the reach of direct sales beyond traditional methods.

Companies such as Vorwerk, known for its Thermomix kitchen appliance, exemplify successful direct sales strategies that include personalized product presentations in consumers' homes. Additionally, telecommunications firms and energy companies are also leveraging direct sales to connect with customers more effectively.

As the market continues to evolve, stakeholders in the direct sales sector are optimistic about future growth opportunities. The ability to adapt to changing consumer preferences and market dynamics will be crucial for sustaining momentum in this unique sales channel.