An unclear or non-existent definitions of Network of Sellers implies that the direct selling industry will continue to face hurdles and will not be able to realise its true potential
Representational image. Image courtesy Lars Frantzen/Wikimedia Commons
Globally, producers reach out to their consumers through multiple formats, and direct selling is one of them. India, with a large consumer base, offers tremendous potential for direct selling companies to invest in manufacturing and for direct sellers to take up self-employment opportunity. The Indian direct selling industry has grown at a compound annual growth rate of 12 per cent from around Rs 10,000 crore in 2015-16 to Rs 18,000 crore in 2020-21.
According to a survey by the Indian Direct Selling Association (IDSA), this industry provides livelihoods to around 8 million Indians. Many direct selling companies have set up manufacturing in India and some have even begun exports. Yet, the sector is unable to reach its potential. Globally, direct selling is a $190 billion industry, while in India it is merely $3 billion. This is because of regulatory uncertainty resulting from lack of definitional clarity, much of which is linked to the lack of understanding…
