Executive Summary:

Objective and background of this survey

• In this study, Direct Selling is defined as “the personal sale of consumer goods and services in or near the home or a similar environment”. This definition is characterized by personal, unmediated contact between supplier and prospective customer, permitting a reciprocal exchange of information. Alongside classical representative selling there are other manifestations of Direct Selling: Party Selling, Home Delivery and mobile shops.
• This study was prepared for the German Direct Selling Association. Prognos AG presents up to date market analysis, especially quantitative market data for the Direct Selling industry in Germany and the results of a household survey.
• Within the framework of this study the following assignments have been performed:
  
  1. Market analysis to specify the volume of sales and growth prospects in 10 different
     Direct Selling business lines as well as in total. The foundation of the study have been company interviews, information of industry associations and statistical offices as well as forecasts and calculations of Prognos AG.
  2. Customer survey with representative client survey to evaluate buying experiences and buying motives.
• This study has been compiled between January and May 2005. For the first time since 1994 new and reliable numbers have been released to assess a comprehensive view of Direct Selling in Germany.