Country Overview
Recognized as a significant emerging market, Brazil stands as a global giant in terms of both population and economy. It ranks as the sixth most populous country in the world, home to approximately 203 million people. This accounts for one third of all Latin America’s inhabitants. Population is notably higher in the Southeast regions, including states like São Paulo and Rio de Janeiro, which collectively harbor about 42% of the population. This is closely followed by the Northeast, with around 28%.
Brazil is the world’s 12th largest economy, boasting a Gross Domestic Product (GDP) of US$ 1.645 trillion. Brazilian economy has experienced a growth of 2.9% in 2023 over previous year. This shows its dynamic potential to navigate through adversity, even considering the instability and doubts originated by the beginning of a new Federal Government.
Brazil’s economy continues to navigate a challenging but vibrant environment. Economic indicators show inflation under control (Consumer Price Index around 4%), just back to Central Bank’s target, and unemployment rate achieved one of its best periods (7.9% in the first quarter of 2024).
About Direct Selling
The direct sales market in Brazil has also experienced growth, particularly in qualitative terms and productivity. Currently, about 3.5 million people are involved, generating a turnover that exceeds US$ 9 billion, placing Brazil seventh among the top 10 countries globally in this sector, according to the 2022 World Federation of Direct Selling Associations’ (WFDSA) ranking.
Direct selling in Brazil has evolved, adopting technology as an enhancement to personal connections. The pandemic has removed traditional barriers, pushing entrepreneurs towards digitalization, even if sometimes connection or digital education are far from ideal. Social selling, social media, live commerce, and the convenience of being “a WhatsApp away” from consultants exemplify the new era of direct selling, with no geographical barriers, especially in a country with such a large territory.
With almost 70 companies operating in 2023 and a great interest from retail and other sectors looking for an additional distribution channel, direct selling is not only growing but it is also diversifying, extending its reach across cities and rural areas, continuously reinventing how consultants engage with clients.
As a trend, we have seen companies as Magazine Luiza, C&A, Riachuelo, and other traditional retail players, opening their direct selling channels and using influencers as entrepreneurs to promote and sell their merchandise. These companies experienced significant growth in sales and brand awareness through this new channel.
Direct Seller Profile
According to ABEVD’s (Brazil DSA) 2023 Workforce Profile Research, 60 % of sellers are women and 48% are youngsters from 18 to 28 years old. More than 43% say they have the full financial responsibility of the family. Direct sellers are concentrated in the Southeast region (54%) and 63% of them work full-time. Internet is a fundamental tool and almost all sellers use social media to promote and sell products, as answered in the chart:
As far as “digital selling” is concerned, the research found out that only 13% never sold through the internet and around 20% sell the majority by internet (apps, social media, Whatsapp and so on).
As in other Latin American markets, Brazilian direct selling is very concentrated in cosmetics and personal care, as in the chart below. However, other categories like wellness is growing in a fast pace and almost all product categories are sold though this channel.
The main challenge during the last months has been competition and keeping the business attractive and interesting to people in a digital environment with so many entrepreneurial opportunities.
The Brazilian direct selling landscape benefits from the technological advancements and keeps promoting and offering more and more opportunities towards financial independence, personal and professional development, and enhanced quality of life in a country in need of entrepreneurial opportunities. At the intersection of technology and humanity relationships lies the true strength of our business model.
ABOUT ABEVD
Founded in 1980, the Brazilian Association of Direct Selling Companies (ABEVD) is a non-profit entity dedicated to promoting and developing direct selling in Brazil. It represents and supports companies that sell products and services through the relationships between independent entrepreneurs and their end consumers. Currently, approximately 3.5 million independent entrepreneurs are active across various categories, including health products, beauty, housewares, clothing, food, jewelry, among others.
ABEVD is also a member of the World Federation of Direct Selling Associations (WFDSA), which unites national direct selling associations globally. Thus, it adheres to the ethical codes set by its affiliates, representing more than 70 countries.
Written by Adriana Colloca, Executive President of ABEVD. Adriana, an economist with a postgraduate degree in Business Administration and an MBA from SDA Bocconi in Milan, Italy, has previously worked in financial institutions such as Bank Boston and ABN AMRO. Her association management journey began in 2006 with the Brazilian Association of Shopping Centers (Abrasce). Adriana has been leading ABEVD since 2018.
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