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This is an archive article published on May 2, 2012

Direct selling biz to reach Rs 10,843 cr size

Direct selling business in India is expected to reach a size of Rs 10,843 crore by 2014-15.

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Direct selling business in India is expected to reach a size of Rs 10,843 crore by 2014-15 on the back of increased consumer spending,according to a report.

According to the report by Indian Direct Selling Association (IDSA) and PHD Chamber in 2010-11,the sales of numerous direct selling companies in India like Amway,Tupperware and Oriflame was estimated at Rs 5,229 crore.

Though the growth of the industry varies across its different segments like organised and unorganised sections,overall the industry is slated to grow at an average of more than 20 per cent in the next four years.

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“Further more,if the same momentum can be maintained in the longer term,then the market size is expected to reach around Rs 21,690 crore by 2019-20,” the report said.

In 2010-11,the size of total business was estimated at Rs 4,120 crore.

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location.

The total distributor base of the direct selling business in India in 2010-11 was 39.62 lakh people.

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Despite immense potential for growth,there are a few challenges in the growth of the sector in India such as lack of regulatory framework.

In the survey,IDSA has asked for ‘industry status’ to the direct selling sector.

IDSA’s member list includes 18 global and Indian companies like Amway,Avon,HUL,Jafra Ruchi Cosmetics,Oriflame and Tupperware.

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