Sweden is one of the largest countries in terms of area in Europe. Despite its size, the population is sparse, with nearly 10.5 million inhabitants. Despite several large urban areas, the overall population density is low. There are extensive wilderness areas and rural areas with few inhabitants. Direct selling companies operate throughout the country. Stockholm and Gothenburg are two of the largest cities both in terms of population and direct sellers.
Direct Selling in Sweden
Direct selling has a long history in Sweden. Two of the oldest direct selling companies still in operation today are Oriflame, founded in 1967, and Tupperware, established in 1946. Direct selling has become an industry that prioritizes digital platforms in Sweden. 95% of households own a computer, and the majority of those working in direct selling use social media. During the pandemic, the industry has experienced growth and interest in virtual and online-based sales via social media.
PM Sweden, Zinzino, Forever Living, Mary Kay, Herbalife, and Oriflame are some of the largest direct selling companies operating in Sweden. Many direct selling companies based in Sweden also have extensive operations in other countries.
Direct Selling Sweden (DSS) is the industry’s national trade organization, headquartered in Malmö. DSS protects, serves, and promotes the efficiency of its member companies and their independent representatives. The association is an industry advocate ensuring that direct selling companies can continue to grow in the market. It collaborates with the Swedish parliament, government agencies, consumer organizations, and others on behalf of its members. DSS provides its members with educational opportunities, events, and industry research.
Demographics of Direct Sellers in Sweden
According to our latest socio-economic survey by IPSOS in 2023, 85% of all direct sellers are women, with an average age between 45-55, and almost half of them have been active in their company for more than 10 years. 75% of those working in direct selling are satisfied/very satisfied with their commitment, and 90% say they want to continue with direct selling. The primary reason for starting direct selling was the products, and what distinguishes the feeling of direct selling in Sweden is that it is a fun and liberating job.
Economic Impact
The industry has been affected by the pandemic, war, and inflation, resulting in some smaller companies unfortunately ceasing their operations. Larger companies demonstrate stability and remarkable resilience during tougher times. Direct selling is a relatively small part of the total retail sector, 1-2% in Sweden, and in 2023, the industry had a turnover of approximately 1.5 billion SEK, which is a decrease from 2022, and the number of sellers also decreased last year. Health and wellness remain the largest product category at 60%, followed by cosmetics & personal care at 30%.
Industry, Regulation, and Self-Regulation
Direct selling companies operating in Sweden are subject to local, regional, and national laws and are directly affected by the “Distance Contracts Act”. The Swedish Consumer Agency regulates the industry as part of its mission to protect consumers. The Swedish Gambling Authority monitors the occurrence of pyramid schemes.
Member companies of DSS must adhere to the industry’s ethical code, where both companies and direct sellers are responsible for maintaining high standards of business ethics.
Perceptions and Misconceptions About Direct Selling
Creating the best conditions for the industry and advocating for ethical conduct is the most important focus for Direct Selling Sweden. This includes communicating the successes of direct selling and self-regulation to lawmakers and regulatory authorities that affect our channel. The association engages in continuous lobbying, media outreach, and outreach to the government and authorities. Swedish consumers’ perceptions of direct selling have changed for the better, and criticism in the media about the industry is almost nonexistent today. Ongoing advocacy efforts, self-regulatory measures, and education are some of the proactive initiatives currently undertaken by the association to further counteract misconceptions about direct sellers and their companies.
The Future of Direct Selling in Sweden
Since the pandemic, the association’s member companies have truly embraced all new digital opportunities, and we see increased interest among young people seeking employment in a simpler and freer manner. Direct selling attracts new generations with the freedom, simplicity, and the entrepreneurial opportunity it offers. This makes direct selling attractive to those looking to pursue a career.
New technology becomes a tool that makes it easier and increases interest in direct selling, but personal contact and interaction between people will always be what makes the industry unique and creates added value.
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Written by Krister Fraser, Chairman of Direct Selling Sweden. Krister has worked in the industry for over 30 years. In 1990, he started at Oriflame and subsequently acted as an external consultant to several of the association’s member companies. He introduced PartyLite in Sweden in 2003, and as the Country Manager from 2007 to 2016, he built up PartyLite from 0-150 million SEK in turnover. Since 2009, he has served on the board of Direct Selling Sweden, and in 2016, he took over the chairmanship of the association.
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