Direct selling has been one of the oldest forms of selling started in the 1980s in India. Post-liberalization, the industry soared to great heights with many established global players entering the Indian market. Between 1995 to 2000, this industry observed a few MNCs entering India, who saw direct selling as a great marketing opportunity.
Over the years, the direct selling industry has proclaimed a self-employment model. Driven by the gig economy and growing aspirations of a young audience, especially millennials, it became extremely popular and owes its enormous success to the entrepreneurship model.
According to reports, almost 800 people join the industry every day. This also adds to an economic boost of a country with trade and commerce development.
With the upswing of digitalization, the direct selling industry has been established as a boon for many millennials, young and promising entrepreneurs, and graduates. The young crowd who are digitally savvy are also very responsive in their workspaces.
Over the course of the pandemic, the Indian retail landscape has changed radically. The Indian retail market is clearly witnessing a new wave of direct selling business models. The retail medium used by well-known global brands, small entrepreneurs, and companies to market their products and service to the consumer is rapidly growing to become the next retail trend in India.
People are Routing to Wellness and Beauty Through Direct Selling - As many people are always looking for opportunities to earn and build their businesses, brands from sectors like wellness, cosmetics and homecare are picking up direct selling models to reach out to the people directly. As the pandemic struck the world, many people became conscious about health, thus giving rise to wellness and health products. These industry segments are the largest direct-selling segments in India and constitute nearly 90 percent of the overall sales.
Work from Home Increased the Consumption of Home Care Products - With many people now limited within the four walls of their house has led to the consumption of homecare and household products. The direct selling industry saw a growth of 15.17 percent, in the home care products, as per the IDSA report.
Many People either Lost their Jobs, or Their Income was Affected - This scenario led to the growth of the direct selling module. The past financial year saw around 53 lakh new entrants of direct sellers and consumers within the first six months.
Direct Selling is more Reliable - Direct Selling is growing 4.7 percent year-on0-year, as consumers paced up shopping through the direct selling channel. There was a time when buyers bluff about a product in short-term selling. Here direct selling companies are a savior, as the sellers cannot bluff about the products.
Win-win Situation for Brands and Consumers - With consumers getting closer to the brand with minimum people involved and hence the price also reduces, on the other hand, the brands have better control over their sales and revenues.
Many factors like an increase in income level, entrepreneurship, extra savings, social networking have led to the popularity of the direct selling industry in India. Players like Proveda India have witnessed a surge in people joining and benefiting from the business in a span of 1 year. The direct selling industry is providing a source of revenue to millions of people dealing with the blow of the Covid-19 pandemic. Owing to this, many people are now selecting direct selling mode which comes with zero initial investment and allows them to be their own boss.
It is predicted that the direct selling industry in India will touch Rs 645 billion by 2025. Not just this, by the end of the year 2025, the disposable income of an Indian middle class is expected to grow at 2.5 times the current rate, leading to an increase in the purchase rate. The number of women entrepreneurs associated with this industry is also likely to increase to 10.6 million in the next 5 years. The direct selling segment is seeking changes in the regulatory framework that govern this industry so that it gets huge potential in a country like India.