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Harnessing the direct selling potential

Harnessing the direct selling potential

Aparna Dutt Sharma, Chief Executive Officer, IBEF

Dec 16, 2013 10:13 AM

The direct selling sector in India stood at INR 7,164 crore (US$ 1.15 billion) in gross sales revenue registering a growth of 12.2 per cent in 2012-13 as compared to the previous fiscal. The industry is expected to grow at an annual average rate of more than 20 per cent to reach INR 10,843 crore (US$ 1.74 billion) by 2014-15 and INR 34,000 crore (US$ 5.46 billion) by 2019-20. The distributor base in the domestic direct selling industry stood at INR 60 lakh (US$ 96,483) during 2012-13 growing by 18.9 per cent as compared to the previous fiscal. The wellness segment is the highest contributor to the sales revenue of the industry at 47 per cent. With a total tax payment of INR 986 crore (US$ 158.5 million) in 2012-13 as compared to INR 821 crore (US$ 132 million) paid a year ago, the direct selling industry is boosting self-employment opportunities and encouraging women empowerment.

With established names like Avon, Amway, Tupperware, Oriflame et al already operating in the Indian market, the sector has grown immensely in recent years and is expected to continue its growth run in the coming years. The striking significance about the sector are the commensurate employment opportunities it is creating, bringing into its fold new segments of the Indian population, especially women preferring to work part time with the flexibility of working from home.



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