8.3.18

Direct selling industry may reach Rs 15,930 crore by 2021


The Direct Selling industry in India has almost doubled since 2011 to reach Rs 12,620 crore in 2016 and is expected to grow at a compounded annual growth rate (CAGR) of about 4.8% to reach Rs 15,930 crore in 2021, reveals the study undertaken by ASSOCHAM.

The average sales of each participant in India is about said $300 per year, that is, Rs 20,000, where the global average is about $1,700 per participant per year or about Rs 10,000 per month, reveals the ASSOCHAM paper.

The Direct Selling industry's contribution to the country can be mapped to various schemes introduced by the Government of India in the past two-three years. The industry has been playing a significant role in Skill India initiative by imparting soft skills, marketing and leadership trainings in its network. It has also contributed positively to several other flagship schemes launched by Government of India like Make in India, Digital India, Startup India and Women Empowerment, noted the study.

Though the guidelines received the overwhelmed response within the industry, there are certain other reforms which needs to be restructure to ensure a sustainable operating environment for the Direct Selling entities need for implementation of guidelines at state level, need for relaxation under the Foreign Direct Investment ('FDI') policy, enactment of Consumer Protection Bill and need for amendment under the PCMCS Act.

Direct selling has been leaving imprints of its growth and success globally over the years. It has become an extremely popular self-employment model across the world. There are several reasons for this immense success, best quality products, personal connection and bonding with consumers and promotions of entrepreneurship are some of the major factors contributing to its growth.

In India, the Direct Selling Industry has existed for several years, but the entry of numerous international companies, during the last five years has accorded greater visibility to this industry, which is still in a nascent stage. According an Annual Survey 2015-2016, it is estimated that over the past five years, about 500,000 people benefited from the opportunities offered by the industry.

SHARE THIS

0 Comment to "Direct selling industry may reach Rs 15,930 crore by 2021"

Post a Comment