Italy ranks third among the leading direct sales markets in Europe. In 2023, total MLM business sales in the country have already exceeded $3 billion and continue to grow actively. In this article, we have explored the economic dynamics and key trends in the direct sales market in Italy, highlighting successful MLM companies founded in the country.
Economic dynamics of Italy
Italy is one of the most culturally and economically developed countries globally, located in Southern Europe. The country operates a continuously growing socio-market economic model, ranking 3rd in Europe and 8th worldwide in terms of GDP.
In September 2023, Italy's GDP reached $2.186 trillion, with a GDP per capita of $36,812. According to the Central Bank's research, Italy's GDP is expected to grow by 0.9% by the end of this year and by 1.2% in 2024.
In Italy, the service sector is well-developed, contributing to 65% of the country's GDP. The cornerstone of this sector is tourism, with Italy ranking 5th in the world for tourist arrivals. The industrial and trade sectors also make a significant contribution to the country's economy, accounting for approximately 23% of the GDP.
At the beginning of 2023, Italy's population numbered 58.9 million people, with an overall unemployment rate in the country at 7.8%.
According to Statista, around 15% of Italians are exploring opportunities for additional income online, and more than 60% of the population prefers online shopping. These trends create favorable conditions for the development of MLM businesses in Italy.
In 2023, the revenues of small and medium-sized businesses in Italy increased on average by 6.3%, while the incomes of large corporations grew by 4.1%.
Small and medium enterprises make up 90% of Italy's entire business landscape. The government of the country encourages the development of new companies by creating a favorable business climate, offering grant programs, and implementing a simplified tax system.
Features of the network marketing industry in Italy
The direct sales industry in Italy is a large and rapidly growing sector, enriched with a variety of products and services. It currently ranks among the largest in Europe in terms of growth rate and openness to new projects.
According to the World Federation of Direct Selling Associations (WFDSA), in 2022, the MLM industry's sales volume in Italy amounted to $2,891 million, marking a 1.2% increase from the previous year. This figure represents 8.3% of European sales.
Today, there are approximately 1,000 MLM companies operating in the country, distributing their products through over 650,000 distributors. Analyzing the local demand, we can identify the most common product categories in Italy's network marketing market:
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food products - the leading category in the sector, with revenues exceeding $484.29 million;
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cosmetics - revenue from the sale of natural cosmetic products has grown to $364.8 million;
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clothing and accessories - this category represents 7% of Italy's MLM business, amounting to $202.37 million;
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energy - a category with profits of $177.64 million, showing a 195.8% increase compared to the previous year.
Network marketing in Italy is subject to clear legislative norms and regulations. The country has the Direct Selling Association (AVEDISCO), whose primary objective is to protect the rights of consumers and distributors. To support the industry's development, AVEDISCO also represents the interests of both Italian and foreign MLM companies in the country.
On August 17, 2005, the Italian government introduced the "Law on the Regulation of the Direct Sales Market and the Protection of Consumers from Pyramid Schemes."
According to the law, specific rules were established for conducting MLM businesses in Italy. It describes the taxation features of network marketing projects, conditions for profit distribution to distributors, and the mandatory requirement for partners to have identification cards.
Italian legislation also states that distributors in the country are not considered "direct sellers." They are a type of intermediary referred to as "demonstrators". The Italian law on direct sales stipulates that demonstrators do not purchase products for subsequent resale. Instead, they seek potential consumers and establish a connection between them and the manufacturing company, earning profits from customer acquisition.
Leading MLM companies in Italy
In the direct sales market of Italy, hundreds of globally renowned MLM industry leaders are operating, including Tupperware, Avon, Vorwerk, Herbalife, and others. However, there is also active growth of Italian network marketing companies today:
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Chogan
Website - chogangroupspa.com
Specialization: health, decorative and skincare cosmetics, perfumery
Chogan Group is the largest Italian MLM company, founded in 2013. According to Chogan, their goal is to create high-quality products at an affordable price for everyone. The company offers products based on natural ingredients under the brand names Brilhome, SuppleFit, Aurodhea, Peptilux, and Olfazeta. Chogan is gaining popularity in Europe and South America, and in 2022, their sales volumes grew by 28%, reaching $101 million.
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Snep International
Website - mysnep.com
Specialization: food, cosmetics, bioactive supplements
Snep SpA was founded in 2014 by Italian entrepreneur Giorgio Burgalassi and is now well-known in all European countries. The company develops innovative products for beauty and health. According to Snep, new products are introduced to the market only after rigorous laboratory testing to confirm their effectiveness and quality. Distributors are the most valuable asset for Snep, having the greatest impact on their growth. In 2022, Snep revenue increased by 35%, reaching $54 million.
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Evergreen Life
Website - evergreenlife.it
Specialization: skincare, body care, dietary supplements, health
Evergreen Life Products is an Italian MLM company founded by Livio Pezle in 2010. The company's development began with the creation of an olive leaf extract OLIVUM and a dietary supplement OLIFE based on it. Later, the product range expanded to include body care products and health products based on OLIVUM. Evergreen Life claims that their primary goal is to support people's health and financial well-being. By uniting more than 40,000 distributors, the company achieved revenues of $26 million in 2022.
Direct sales in Italy is one of the promising markets that offer significant opportunities for both scaling existing MLM businesses and launching new projects. However, the relatively high competition demands a careful approach when choosing a product and creating an attractive compensation plan.
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