India’s direct selling industry experienced a remarkable growth of over 12% year-on-year in 2022-23, as revealed by a report released on Wednesday by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar. The industry achieved an overall turnover of INR 21,282 crore during this period.
The report highlighted that the sector experienced a Compound Annual Growth Rate (CAGR) of 8.3% over the four-year span from 2019-20 to 2022-23.
According to the report, wellness and nutraceutical products contributed to 73.5% of the industry’s overall turnover, while cosmetics and personal care accounted for 11.3%. The survey noted an increase in the number of active direct sellers, reaching around 86 lakh from 84 lakh in 2021–22.
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Vivek Katoch, chairperson of IDSA, said in a statement, “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”
In 2022, India climbed to the 11th position in the global direct selling ranking, a notable improvement from its 15th position in 2019.
Direct selling companies distribute their products directly to consumers through their member-sellers rather than using retailers. Companies like Amway, Oriflame, and Herbalife advocate for stricter regulations and clearer distinctions from multi-level marketing schemes, aiming to set themselves apart from fraudulent schemes.
In the middle of last year, the Ministry of Consumer Affairs made amendments to the Consumer Protection (Direct Selling) Rules, 2021, via a notification. These modifications aimed to differentiate between fraudulent pyramid and money-circulation schemes and genuine direct-selling enterprises. However, executives from IDSA have emphasized the necessity for additional clarity in defining the term ‘network of sellers’.
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