Case study: Direct Selling Industry – Market Environment Research on Direct Selling Industry in Indonesia

The challenge

A US-headquartered and major direct selling company (one of the top-three players in Indonesia) wanted to understand the overall market competition and trends in direct selling industry in Indonesia.

The objectives of the study were to:

Understand the market size and growth, major players’ market share and industry trends
Benchmark strategic directions and operational factors from other leading direct selling players in Indonesia
Introduce new channels and selling strategies to client (novel channels) to enhance client’s sales channels and increase revenue
The process

Spire conducted a two-stage study, with the initial stage being the market scanning for market assessment and identification of top players, followed by a deep-dive study for benchmarking and best practices.

Face-to-face interviews with major direct selling companies (both single-level marketing and multi-level marketing), as well as direct selling industry association and industry analysts and key opinion leaders were conducted too. Spire also took on the mystery shopping approach and participation as members to experience and validate research findings.





The results

Our client used Spire’s report to evaluate its multi-channel strategies, launch its new selling (novel) channels and improve its operational processes.

Project deliverables included a report that:

Analyzed the overall situation, market size and growth, market share, market size breakdown, industry trends and size of direct selling industry as percentage of total retail sector in Indonesia and other related industries, e.g. e-commerce
Included a short profiling of the top10 players in the industry
Benchmarked and identified the best practices in strategies and tactical factors to improve client’s strategic direction and processes
Identified multi-channel strategies in direct selling industry and recommended potential novel channels from the industry as well as from other major retail players with novel channels