WFDSA

ANNUAL REPORT
2017 / 2018
TABLE OF CONTENTS

21
GLOBAL
REGULATORY
AFFAIRS
COMMITTEE

6 WFDSA 14 ADVOCACY
COMMITTEE

22 STATISTICS

10 GOVERNANCE

4 CHAIRMAN

20
ASSOCIATION

8
STATEMENT SERVICES
DIRECT
SELLING INITIATIVES

12 ETHICS
COMMITTEE
18
WORLD
CONGRESS
AWARDS

2 3
 Dear industry colleagues and anyone
sharing an interest for direct sales,
I am honored to serve and help shape
the future of our industry together. These
are exciting times and as the WFDSA
Chairman I feel great pride for our joint
success as we this year celebrate a great
milestone together - the WFDSA’s 40th
Anniversary. I want to send my regards
and appreciation for the vision and
leadership of my predecessors and for
the passion and hard work of our
members from all over the world.
Because of its members we have a strong
and vibrant federation - an excellent
community and network that I’m
dedicated to maintain and help build
even stronger for tomorrow.
When I accepted to lead WFDSA I knew
that our industry, like many others, has
its challenges. However, as I finish my
first year as Chairman, I feel that we
are facing the complex and shifting
macroeconomic and ever-changing
technological environments head-on.
We have managed to retain our focus,
our sense of purpose and most important,
our optimism about the future and our
commitment to owning it now.
The excitement about the changing
economy where our consumers are
getting ever more independent due to
technology, is something that lies close
to my heart.
4 5
We are now at a point
where futurists even
predict a scenario where
traditional employment
ceases to exist. The benefits
of self-employment and
autonomy will be too great.
This is a future that belongs
to the entrepreneurial
spirit of the millennial
generations and a future I
believe direct selling will
have a big role to play in.
As an industry we continue to grow. Our
global statistical data which was released
in June this year showed that the 2017
global retail sales [value of direct selling]
reached a new record 189.6 billion USD,
a 1.6% increase over 2016. Compound
annual growth rate for the period from
2014 through 2017 was 3.7%, showing a
sustained growth over time. The global
force of independent direct selling
representatives reached nearly 117 million,
up 1.9% over 2016. Both the sales and
representative figures set new global
records, marking further evidence of
the popularity of direct selling as a
convenient way for customers to shop,
and for direct selling representatives to
earn additional income.
On so many occasions I have gotten
to face the beauty and life-changing
capabilities of direct selling. A beauty
that got me to dedicate my professional
career to this industry. I recently came
across a natural phenomenon that I
would like to share to mark my words in
this letter. It happened in the middle of
a great thunderstorm, where I for the
first time in my life got to experience
what is called a cloud-to-cloud lightning,
sometimes referred as the horizontal
lightning. Often it is the strongest of all
lightning and when it strikes it branches
within multiple strikes across the sky.
That same kind of energy and beauty I
saw on that day, I see in the direct sales
type of person-to-person business we
are in. When we help people to conduct
business directly between them, cutting
much of the middle men and red tape that
can come from traditional retail, we help
create the unique energy and business
trust between customers. This is the
beauty I’ve witnessed on so many times,
a spark of energy and passion unlike any
other. If business can be described as a
thunderstorm then truly, we the direct
sales industry, are the horizontal lightning.
It is our aim to help the industry prosper
and create the kind of favorable
environment for everyone concerned. We
are creating the optimal conditions for a
metaphorical horizontal lightning. That is
our future - a future which is NOW.
The World Federation of Direct Selling
Associations represents the global direct selling
industry in more than 170 countries. More than
60 national and regional direct selling associations
are members of WFDSA, united to strive for the
highest ethical conduct standards among their
member companies and to build understanding
of direct selling worldwide.

WFDSA Code of Ethics

All WFDSA member Direct Selling
Associations have implemented the
WFDSA World Code of Ethics for Direct
Selling in their national Codes as a
minimum requirement of membership
in WFDSA. All direct selling companies
agree to be bound by these Codes as a
condition of admission and continuous
membership in a national association.

https://bit.ly/2LwAu23

6 7
 Why Direct Selling?
• It is a low-risk way to own a
business – it takes very little,
if any, capital investment.
• It can provide extra income.
Direct sellers set their own goals for
earning income and determine how
to reach those goals.
• It offers flexible work schedules.
Direct sellers choose when and how
much they work, whether full time
or part time.
• It offers the chance to develop
new skills and be mentored by
experienced leaders.
• Earnings are in proportion
to efforts. The level of success
depends on how hard a person
wants to work.
•It provides opportunities to meet
and socialize with people.
8 9
Direct selling is the Direct sales often occur in a one-
to-one or small group or party plan
person-to-person sale environment, often in the consumer’s
of a product or service home. Direct sales also may take place
in a branded shop or retail location,
by independent sales online via e-commerce or social media,
representatives who are or by subscription/automatic delivery.
sometimes also referred Independent sellers earn income
to as direct sellers, from direct selling companies on the
sale of products. They join a direct
consultants, distributors selling business opportunity to earn
or other titles. extra money or even build a business
with very low entry cost, low risk and
company-provided training and
support. Some people join direct
selling companies just to buy exclusive
products and services they enjoy
at a discount.
Worldwide, more than 116 million
independent direct selling
representatives earn income by direct
selling. They sell some of the world’s
most sought-after brands of nutrition,
beauty, home care, jewelry, clothing,
home decor and other products; and
energy, telecommunications, legal,
financial planning, insurance and other
services. Direct selling accounted for
more than USD 189 billion in retail sales
globally in 2017 – a new sales record
for the industry.
GOVERNANCE
GOVERNANCE
GOVERNANCE
GOVERNANCE
The WFDSA is governed
by the CEO Council. The
Council is comprised of
chief operating officers of
leading member companies
around the world. The
WFDSA chairman is a
Council member elected
by the Council to serve
a three-year term.
The CEO Council directs WFDSA affairs,
activities and establishes policies and
priorities. The Council meets annually to
address issues affecting the industry and
chart the action plan. The CEO Council
approves the annual operating budget
and program of work prepared by the
WFDSA Operating Group.
10
Highlights of 2017/2018
Activities and
Strategic Initiatives
WFDSA strategic initiatives are
designed to increase public awareness,
understanding and support for the real
and meaningful difference direct selling
makes in various economies, political
systems and people’s lives around
the world, every day. WFDSA and the
national associations work closely
together with key regulatory, consumer
and academic groups to promote
consumer protection initiatives.
11
 Committee
Ethics
Committee

Ethics
2017/2018 Activities
The Ethics Committee and the Ethics
Sub-Committee worked diligently to
revise the WFDSA Code of Ethics, to
raise the bar on ethics and strengthen
the Model Code in the marketplace.
The proposed revisions were approved
by the CEO Council in April 2017 and
subsequently by the Board of Delegates
in August 2017 by a 2/3 majority vote.
All member DSAs and all their members
are required to comply with the revised
World Code. The full compliance should
be achieved by December 31, 2018.
The Committee promoted the use of
the WFDSA Model Code of Ethics
Toolkit, DSAs and their members to
communicate and promote the Code
to the widest audience possible. The
toolkit is located on the WFDSA
website at: https://bit.ly/2ORqd5m
The WFDSA Ethics
Committee administers,
promotes and enforces the
Global Code of Ethics and
implements programs to
improve and strengthen the
self-regulatory activities of
WFDSA, local and regional
associations and their
member companies.
The committee facilitates interaction
between association Code administrators
and sharing of best practices across
nations. They also promote awareness of
the Code among member companies,
media, regulators and consumer groups.

12 13
Advocacy

Committee
Advocacy
Committee
2017/2018 Initiatives

INDIVIDUAL
ENTREPRENEURSHIP:
NEW DRIVERS
OF GROWTH
On December 4, 2017, the Ukrainian
DSA in cooperation with the WFDSA
held a conference titled “Individual
Entrepreneurship: New Drivers of
Growth” in Kiev, Ukraine. Over 250
people attended the event, including
member company executives,
government officials, consumer
protection organizations, academics and
DSAs from the European region. Keynote
speaker was WFDSA Chairman Magnus
Brannstrom, whose presentation titled
“Direct Selling – The Future is Now,”
focused on challenges and opportunities
of the industry in today’s fast changing
era of digitalization.

The Advocacy Committee developed and rolled ENTREPRENEURSHIP

out the Global Messaging Guidebook to DSAs and
their member companies. The WFDSA Messaging
Guidebook is a collection of practical language and
AND DIRECT SELLING
In December 2017, the Croatian and
Slovenian DSA in cooperation with
“ENTREPRENEUR Entrepreneurs, government officials,
various consumer organizations and
AND CONSUMER – academia as well as representatives
of 31 regional offices of the Federal
STEPS TOWARDS Service for Supervision of Consumer
Nu Skin Enterprises hosted conference
participants at their headquarters.
Participants had the opportunity to
test the products and answered various
questions regarding distributor training,

messages that have been proven through research to

be universally effective for those interested in direct
selling, to help increase public understanding of direct
selling, and foster greater communication among
member companies.
the WFDSA held a conference titled
“Entrepreneurship and Direct Selling” in
Zagreb, Croatia. Participants included
member companies, government officials,
entrepreneurs, women entrepreneurship
associations and media.
Speakers discussed consumer protection
and self-regulation of direct selling
companies, and code enforcement, which
will improve compliance with consumer
protection laws and the education of
consumers about the difference between
legitimate and illegal businesses.
EACH OTHER”
In December 2017, the International
Conference “Entrepreneur and Consumer
– Steps Towards Each Other,” was held
in Moscow, Russia. The Conference
organizers were the Russian Direct Selling
Association (RDSA) and the International
Confederation of Consumer Societies
(CONFOP) with the support of WFDSA.
Rights Protection and Human Welfare quality control, cooling off period, etc.
(Rospotrebnadzor) attended the event.
The Eurasian Economic Union (EAEU)
member countries (Armenia, Belarus,
Kazakhstan and Kyrgyzstan) participated
in the event as well as DSAs from
Kazakhstan and Ukraine.
The conference focused on discussions
on legislative initiatives around SME
taxation and consumer rights protection,
and pros and cons of the proposed
obligatory system of products labeling
with control (identification).

14 15

TURKISH DSA
EDUCATIONAL
CONFERENCE
March 2018, the Turkish DSA held
an educational conference at the
Bosphorus University in Istanbul, Turkey.
Participants included member companies,
entrepreneurs and academia. Speakers
discussed doing business in Turkey, the
gig economy, best practices in direct
selling in the European Union, and women
entrepreneurship in Turkey.
16
“MILLENNIALS AND
THE COMPANY OF
THE FUTURE”
In April 2018, WFDSA supported the sixth
French DSA (FVD) Academic Seminar
on “Millennials and the Company of
the Future,” which took place at the
Conservatoire National des Arts et
Métiers (CNAM). Participants from
academia, business, government, and
direct selling executives attended the
event. The discussions and informative
presentations focused on the millennials,
expectations, challenges, and what
businesses need to know to tap into this
complex generation.
ECUADOR DSA (AEVD)
15TH ANNIVERSARY
In October 2017, the Ecuadorian DSA
(AEVD) celebrated its 15th Anniversary.
Some keynote speakers included the
First Lady of Ecuador Rocio Gonzalez
de Moreno, the First Lady of Quito
Maria Fernanda Pacheco, and WFDSA
Executive Director Tamuna Gabilaia.
During her presentation, the First lady
of Ecuador Rocio Gonzalez de Moreno
recognized direct sellers, especially
women who are engaged in direct selling.
The First Lady also stated that
the national government supports
start-ups in the interest of the country’s
economic development.
WFDSA presented AEVD with a plaque
of appreciation for years of outstanding
service to the direct selling industry.
World Congress XV “Own the Future”
WFDSA’s World Congress XV “Own the Future” was held In his address as new Chairman of
WFDSA, Magnus Brannstrom, CEO
October 2-3, 2017 in Paris, France. The event was a great and President of Oriflame, stated “I am
success with an attendance of 500 delegates from more very honored and privileged to serve
the direct selling industry as Chairman
than 50 countries around the world and more than 50 of the WFDSA during these exciting
Direct Selling company CEOs and government officials times. The world is going through
digital transformation. I believe that
from a number of countries. direct selling, with its communities of
people united by a joint purpose, is
The Congress was opened by Founder The World Congress also featured more relevant than ever for empowering
& Chairman of Captain Tortue and interactive workshops including relevant entrepreneurship through offering
Chairman of the World Congress Steering topics for the future of the industry quality products and services. I look
Committee Philippe Jacquelinet, who such as Generation Y, the evolution of forward to continue to build and develop
welcomed all delegates to the event. consumption and distribution, successful on my predecessor’s long legacy of
BBC Journalist Emma Crosby moderated digital transformation, the collaborative improving the standards of the global
the plenary sessions. WFDSA Chairman economy, success in Europe, the company direct selling industry.”
Doug DeVos officially opened the 15th of the future, the future of connected
World Congress. The event brought tools in direct selling, and social media WFDSA Executive Director Tamuna
together DSAs, member company and direct selling. Gabilaia announced that the next
executives, government officials, World Congress will take place in
academia and media from all over the Thailand in 2020.
world. WFDSA Executive Director
Tamuna Gabilaia presented on the global
state of the direct selling industry.
Bertrand Piccard, the Swiss aeronaut
who flew around the world with the first
solar powered plane, “Solar Impulse,”
shared his vision of a fast-moving world
in his keynote speech, which focused
on innovation and entrepreneurship.
Pascal Lamy, former Director of the World
Trade Organization (WTO) and former
European Commissioner for Trade, gave
insights about the current and future
global challenges the world will face.
Chairman Doug DeVos moderated a
discussion on owning the future with
top industry leaders.
CHARITY
WFDSA raised 42,000 Euros for
SIPAR during the World Congress
XV Gala Dinner in Paris, France.
SIPAR is a French NGO that works
toward the reconstruction of
Cambodia through education of the
youth. SIPAR builds school libraries
and mobile libraries in Cambodia.
17
World Congress Awards
WFDSA announced the WFDSA Announced
direct selling industry’s Winners of the DSA
most prestigious awards Innovation Program Awards
during the World during the World Congress
Congress XV Gala Dinner XV Gala Dinner in Paris,
in Paris, France. France.
The second-place award went to the
The WFDSA Lifetime Achievement DSA of Malaysia for the “Ethics Council
Award was given to Truman Hunt, Former of Malaysia” and the DSA of Poland
CEO of Nu Skin, Past WFDSA Chairman for “Polish Direct Selling Day.” (Poland
and Secretary. Rich Hartvigsen, Nu Skin, unphotographed).
accepted on behalf of Mr. Hunt, who was
unable to attend.

The WFDSA Code Administrators

Award was given to Paul Dobson,
The WFDSA Distinguished Award was The First-place award went to the DSA
former United Kingdom DSA Code
given to Dora Hoan, WFDSA Secretary of Russia for its multi-year public-private
Administrator. The Code Administrator is
and CEO and Co-Founder of Best World partnership initiative “Entrepreneurs and
an independent third party, administers
Lifestyle and Marie Lacroix, Internal Consumers – Steps towards each Other.”
Code complaints and ensures that all
Director of SELDIA. This event has made an outstanding
companies which belong to DSA comply The third-place award went to the
contribution in raising awareness of direct
with provisions of the Code. DSA of Ecuador for the “Direct Selling
selling in Russia. The event is so impactful,
that it helped to make a change at the Promotional Campaign.”
public policy level.

The WFDSA Global Award for Industry

Research was given to Judy Jones, a
veteran of the direct selling industry and
Amway. She is immediate past Chair of the
USDSA Industry Research Committee,
as well as Chair of the WFDSA Global
Research team since 2009. The DSA of Peru and the DSA of Ukraine
received the WFDSA Global Code of
Ethics Multi-Year Platinum Participant
Award. The objective of this initiative is to
even further promote and communicate
the Code of Ethics and the protections
it offers to the widest audience possible
beyond the requirements of the Code.

18 19
 The Global Regulatory
Affairs Committee
protects the direct selling
opportunity by providing
proactive, strategic, and
tactical Government/
Regulatory Affairs support
to national DSAs to address
and promote consumer
protection.
Committee encourages member 2017/2018 Activities
companies to visibly promote good
causes, conducts fundamental regulatory Training on effective legislation
training for member companies, and and good public policy was held
creates position papers on behalf of the in conjunction with the various
direct selling industry. events. The Global Regulatory
Toolkit is being further enhanced
with position papers. The Legal

Affairs Committee
Compendium is a summary of

Global Regulatory
various direct selling laws and

Global Regulatory regulations used to model and

adopt best practices globally.

Affairs Committee
The Committee continues work
with the Association Services
Committee and the USDSA
International Council on the
Association Services

potential formation of a DSA in

China and the revision of the
regulations in China.

Association workshops are

done to continue to build
upon DSA’s strength in the
marketplace
Association Services
Initiatives

• The Asia/Pacific Association

Initiatives
Performance Program was held in
Seoul, Korea in conjunction with
the Korean DSA 30th Anniversary
conference.
• The Latin American Association
Performance Program was held in
Buenos Aires, Argentina.

Huge thanks to the DSA of Argentina and

Korea for their hospitality and for hosting
another productive event for the DSAs in
their respective region.

WFDSA would like to congratulate the

DSA of Australia, Colombia, France,
Malaysia, Mexico, New Zealand, Peru
and the United States for requalifying/
reaching the Platinum DSA performance
criteria in 2017.

20 21
STATISTICS STATISTICS
STATISTICS STATISTICS
STATISTICS STATISTICS
STATISTICS STATISTICS
STATISTICS STATISTICS
STATISTICS STATISTICS
STATISTICS STATISTICS
STATISTICS STATISTICS
Global Sales Summary

Germany

France

United States China Korea Japan

Top 10 Markets Mexico

Taiwan, China
USD

United States $34.9 Billion

China $34.3 Billion

Malaysia
South Korea $17.2 Billion

Germany $16.7 Billion

Brazil
Japan $15.3 Billion

Brazil $11.9 Billion

Mexico $5.9 Billion

France $5.0 Billion

Malaysia $4.7 Billion

Taiwan, China $3.9 Billion

Sales figures are expressed in Estimated Retail Dollars.

189.6

2017
USD
186.7

2016
USD
THE TOP 10 MARKETS 182.9

2015
USD
Global growth was GENERATE 79% OF Global retail sales have
170.1
2014
driven by sales growth increased year-over-year

USD
in 3 out of 4 regions GLOBAL SALES. from 2014 - 2017
2/3 (65%) of countries showed growth. Sales figures are expressed in Estimated Retail Dollars. The direct selling industry has shown
The top 5 direct selling markets account sustained growth over time, with a
for 62% of the world’s direct sales, and the compound annual growth rate of 3.7%
top 10 account for 79%. for the period from 2014-2017.

24 25
Sales By Product
$63.5
$59.8
34%
32%

g
c l i psin
e
l o s er to h.
sc t
i n che s t reng esti
mat
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s , k e .S. d 14,
e mar
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eme
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6 . —a r p erio D o llar
ion
of D
U. c o r d 2 0 1 - y e a l l i o n a t d .
e3 i r l
g re er B ede or
the dire
ct s
ellin
t inc
reas
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rate
ove
r th
n an
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ose
the
Wor
ld F
rou
nd t
he w
al en th llio h by ies a
$13.1 11% 2 0 17,
glob
a 1.6
perc
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row
ales
o v er $
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r e s earc c o m pan
In les— nd a g to lling
il sa pou ed s rdin t se
reta com r e ach , a cco d d irec
% t s s
e s an
7% $5.6 $7.5 in a
3.7
untr
ym
arke
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tner
DSA
$5.6 $3.7 $3.7 $3.7 four
c o
ent
t o t al g
), its
p a r
$3.7 nty- perc DSA
USD

Twe s e d 94 n s (WF
pr i io
ciat
3% 2% 2% 2% 3% 4% 2% com
S e l l ing
Asso
New
s.
e l l ing
Sales figures are expressed in Estimated Retail Dollars, USD billions. tS
irec
of D
i s s ion
erm
th p
n te d wi
Pr i

Clothing &
Accessories
Cosmetics &
Personal Care
Home Care Household
Goods &
Wellness Books, Toys,
Stationery, Etc.
Foodstuff &
Beverages
Home
Improvement
Utilities Financial
Services
Other
BILLION
DOLLAR
Durables

MARKETS
1. United States 13. Russia
2. China 14. Thailand
3. Korea 15. Colombia
WELLNESS AND 4. Germany
5. Japan
16. Argentina
17. Canada
COSMETICS & 6. Brazil 18. Peru
7. Mexico 19. India
PERSONAL CARE 8. France 20. Indonesia
ARE THE LARGEST 9. Malaysia
10. Taiwan, China
21. Philippines
22. Ecuador
CATEGORIES 11. United Kingdom 23. Poland
12. Italy 24. Australia
26 27
Emerging Markets 66.2%

56.7%

43.3%

Direct Sales
People in emerging markets 33.4%
increasingly turn to direct selling for
66.2%
opportunity, up 10 percentage points
from 2010 through 2017 (43%). 2010 2017
Emerging Advanced
56.7%

The People of
Direct Selling
43.3%

33.4%

2010 2017
Emerging Advanced

14%

40%

60%
86%

GDP Population
The people in emerging More than 8 in 10 people live
markets live on just 4 in 10 in emerging markets (86%).
global GDP dollars (40%).

28 29
Global Growth and Outlook

World Sales World Sales Force

USD $189.6 billion 116.7 million
+1.6% +3.7% +1.9%
2016-2017 2014-2017 2016-2017

+1.8% -0.1% -5.8%

2016-2017 2016-2017 2016-2017
+6.8%
2016-2017

Americas Americas
USD $64.0 billion 33.1 million
+1.5%
2014-2017
Asia
Asia
USD $85.4 billion
+4.8% 65.2 million
2014-2017

+2.5% +9.9% +0.3%

2016-2017 +4.4%
2016-2017 2016-2017 2016-2017
Middle East Europe Middle East
Europe & Africa
& Africa
USD $33.7 billion 15.1 million
+4.6%
USD $1.8 billion 3.4 million
2014-2017 +12.5%
2014-2017

Sales and sales force

achieved new records
World Sales World Sales Force
USD $189.6 billion 116.7 million
in 2017
The global Direct Selling industry attained Asia $85.4 billion Asia 65.2 million
record sales and sales force numbers again
in 2017, showing the sustained growth the Americas $64.0 billion Americas 33.1 million
sector has become known for.
Europe $33.7 billion Europe 15.1 million
The stats by region
2017 sales were generated by a global force Growth was driven by increases in 3
Middle East & $1.8 billion Middle East & 3.4 million
of nearly 117 million independent direct of the 4 regions and 65% of countries
Africa Africa around the world.
selling representatives.

30 31
2017 / 2018