Direct Sellers Stand To Gain In a Recession

According to this post by Denis on the 13th of February 2009, "Direct Sellers stand to benefit during a recession as recruiting sales representatives gets easier and consumers turn to low price products", according to the US Direct Selling Association. In recession, recruitment for sales representatives can become easier as many individuals are keen to supplement the family income. In this respect Avon as a direct seller of beauty and health care products definitely stand to gain although it has slashed it's forecast in recent months. Being a direct seller Avon is able to reduce cost through the elimination of many intermediaries down the supply-chain and is able to translate the lower cost into lower prices for it's customers. During a downturn consumers would naturally put the brakes on high spending and opt for reasonable priced products and in light of all this Avon as a direct seller may be able to put out a strong show even during this economic crisis.