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Direct Selling Companies in India - Selling directly and profitably

Direct Selling Companies in India - Selling directly and profitably

Aparna Dutt Sharma, Chief Executive Officer, IBEF

Apr 01, 2013 5:24 PM

The direct selling industry is one of the fastest growing non-store retail formats in the Indian market today. Providing self-employment opportunities to over 50 lac distributors, the industry has grown by 22 per cent last fiscal top to touch INR 6,385 crore (US$ 1.17 billion) in 2011-12 as against INR 5,229.4 crore (US$ 963 million) during 2010-11. Interestingly, tax collections from direct selling companies have registered an increase of 26.9 per cent in 2011-12 to touch INR 821.2 crore (US$ 151 million) as against INR 647 crore (US$ 119 million) in 2010-11.

Companies like Amway, Tupperware and Oriflame have been operating in India for over a decade now and the sector continues to attract both domestic and international direct selling companies to the Indian market. Currently, direct selling account for 35.8 per cent of non-store retail sales, 4.41 per cent of organised retail sales and 0.07 per cent of GDP. Going by the estimates, it can be expected to touch INR 21,690 crore (US$ 4 billion) by 2019-20.

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