Last year the total sales of direct selling industry in Latvia retained the high growth rate and increased by 12% until 29,1 million euros (excl. VAT) comparing with 2012, when the increase was 11%. The number of people involved in direct sales in Latvia increased by 4%, from 40,9 thousand consultants in 2012 to 42,5 thousand in 2013.
“Two-digit growth of sales for the second year in a row is great result for the direct selling industry, moreover having in mind that total retail trade turnover in 2013 in Latvia rose just by 3.8%. The direct sales growth was mostly fueled by the increase of consumer spending and by the increase of number of consultants, who were looking either for extra money or for individual business possibilities. Also such growth proves that people like this way of shopping, where they can get a personal service and advice from the direct seller”, says Aleksandrs Čakste, the Chairman of Latvian Direct Selling Association.
In Latvia direct selling market experienced the biggest growth between the Baltic States, as in Lithuania the total sales of direct selling industry increased by 8% and reached 39,37 mln. EUR (excl. VAT), while in Estonia the growth was 5%,- 31,18 mln. EUR (excl. VAT). The number of people involved in direct sales in Estonia increased by 3% up to 34 thousand people, while Lithuania last year experienced more than 2% growth from 48,3 in 2012 to more than 49,4 thousand consultants.
According to Gintautas Zaleckas, General Secretary for Baltic Direct Selling Associations, last year Latvia was a leader in the Baltic States not only in the growth of economy, but also in the growth of direct sales. As it was expected the direct selling market in all three Baltic States is recovering more rapidly than the total retail market and sales in shops. As direct sellers more and more actively use the internet to manage and promote their business, to reach and serve their clients, and as there are still a lot of untapped possibilities, the growth potential of direct selling business remains high.
In 2013 the total sales of direct selling industry in the Baltic States reached 100 million euro (without VAT). Meanwhile, the number of people involved in direct sales was over 125 thousand people.