3 ways of looking at our potential market
There are 3 ways of looking at our potential market:
A. Digital gift card market
There is great potential in the digital gift card market. Reliable numbers are scarce but in the United States, we see: “The total gift card market is an estimated $307 billion. The potential for the entire gift card market by 2024 is $698.2 billion USD. In North America, about 23% of all mobile commerce is gift card sales, and if we assume that percentage holds true for United States, almost $46 billion is the market for electronic Gift Cards. According to First Data, the global leader in payment technology and services solutions which acquired Gyft, estimated in 2014, that virtual and mobile cards are near $100 billion in U.S. gift card market. In Latin America, only 3% of its online commerce is paid by gift cards, showing potential for growth.”
B. The Network Marketing market
The Network Marketing and Direct Sales profession hit a new record in 2013 with $178 BILLION in global sales. That’s up from $167 Billion in 2012. Network Marketing is a BIG business! Roughly $71 Billion (40% of the $178 Billion), was paid directly to distributors via commissions. That’s $6 billion a month, or $200 million a day!
Total Global Sales for 2013
The NFL: $9.5 billion
Music Industry: $15 billion
Video Gaming: $76 billion
Movie Industry: $88 billion
Natural Foods Industry: $9.5 billion
Network Marketing: $9.5 billion
WFDSA (World Federation of Direct Selling Associations) reports the sales volume generated in 2015 by its member countries as $184 billion and the number of individual direct sellers as 103 million. The number of direct sellers does not include those in China as this country’s figures were not reported. The sales volume in 2015 represents a 7.7% growth from the previous year in constant Dollars. Amway kept its leadership position among direct selling companies in 2015. Amway’s 2015 global sales was $9.5 billion, representing a 12% decline as compared to the previous year. As of end-2015, Amway was followed by Avon ($6.2 billion), Herbalife ($4.5 billion), Vorwerk ($4 billion), Infinitus ($3.9 billion), Mary Kay ($3.7 billion), Perfect ($3.6 billion), Natura ($2.4 billion), Tupperware ($2.3 billion), and Nu Skin ($2.3 billion). Avon’s figure here does not include Avon North America’s (a.k.a. “New Avon”) figure as this unit was sold to form an entity outside Avon. New Avon’s 2015 revenue was $1 billion.
C. Household Consumption
Global household consumption exceeds USD 45 trillion. Step by step and country by country Fluz Fluz is aiming at a piece of this amount. The United States, our next target consumer market currently averages >13 trillion in yearly household consumption currently. Household Consumption reached USD 177bn in 2016 in Colombia. We have chosen to test Fluz Fluz in Colombia first, because of the country’s stable economy and large development opportunities. Culturally, it has a history of companies engaging in multi-level and direct selling growth strategies, which are both similar and different to the Fluz Fluz model. The appeal of Fluz Fluz lies in its fast processing, which will appeal to the money-conscious mobile users in Latin America. Fluz Fluz is an ideal fit because it resembles loyalty programs and retail shopping models that Colombians are already comfortable with. In 2017 Fluz Fluz has seen great consumer traction in Colombia and is now ready to enter the US consumer market. Although competitive in terms of existing retail loyalty programs and gift card exchanges, the US consumer has yet to enjoy the unique benefits offered from the Fluz Fluz model. The US consumer moreover has the purchasing power and the technological readiness needed to fully grasp the benefits of Fluz Fluz. It is only logical to conclude that if an emerging market like Colombia embraced the model in a landslight, so will a mature Ecommerce economy like the US.