India reported the highest compound annual growth rate at 15.7 percent over a three-year period among the top 15 direct selling countries. India also registered the highest year-on-year growth of 7.7 percent. Despite Covid-induced disruptions and challenges, India showed resilience and reported the highest annualized growth among countries with retail sales of over $3 billion.
"The Indian direct selling industry crossed $3.25 billion in retail sales in 2021 and maintained its 12th place in global rankings among direct sellers worldwide," revealed a report by the World Federation of Direct Selling Associations (WFDSA).
Further, India reported the highest compound annual growth rate at 15.7 percent over a three-year period among the top 15 direct selling countries. India also registered the highest year-on-year growth of 7.7 percent.
The report further stated that India was placed sixth in the Asia Pacific region, with the top five positions held by Korea, China, Japan, Malaysia, and Taiwan. The US continues to lead the list in the global direct selling industry with a 23 percent share, with sales of $42.67 billion.
“India's direct selling market is growing steadily and will likely be among the top five international markets in the next decade,” the Indian Direct Selling Association (IDSA) said in a statement.
“The growth reaffirms the industry's commitment while protecting consumer interests and those of the direct sellers,” said Rajat Banerji, Chairman, IDSA. Direct selling companies in India include Amway, Oriflame, Tupperware, Modicare, and Herbalife, among others.
The government released new rules for the direct selling industry under the Consumer Protection (Direct Selling) Rules 2021 in December last year, banning pyramid and money circulation schemes. The move was aimed at separating legitimate players from Ponzi scheme operators.
The domestic industry had an active distributor workforce of 7.9 million last financial year, up 6.3 percent over 2019-20, a previous report by the IDSA said. Sales stood at about Rs 18,067 crore in 2020-21, an increase of 7.7 percent over the previous year.
READ MORE: Direct Selling Industry Grows 7.7 pc to Rs 18,067 cr in FY21