The year 2020 has truly been a year of uncertainties. For many, it has meant the loss of loved ones; for some others, their livelihood. However, the news of vaccines for COVID-19 coming in 2021 has certainly brought a great deal of hope. Some sectors are already witnessing the green shoots of recovery. Direct selling is one such sector that continues to promise a bright future despite the current obstacles and challenges.
As per industry estimates, the Direct Selling industry in India, which currently ranks No. 15, globally, is expected to grow at a Compounded Annual Growth Rate (CAGR) of about 4.8 percent to reach Rs 15,930 crore by 2021. This proves that the Direct Selling Industry is flourishing and illustrates its potential with the continued rate of growth – increasing at an impressive rate of 12.1 percent Y-o-Y.
Another interesting trend that is noticeable is that the sector has been instrumental in employment generation for nearly 122 million Indians who lost their jobs this due to the pandemic.
Gautam Bali, Managing Director, Vestige Marketing Pvt Ltd., said, “Direct Selling is one of the fastest-growing sectors in India today. Despite these challenging times, the sector has witnessed spectacular growth in the last three quarters. At Vestige, we have provided an alternative career opportunity to millions during the pandemic period. We are looking forward to 2021 and we hope to continue to be a key player in the Direct Selling Industry’s rapid growth by empowering people”.
Initiatives like ‘Vocal for Local’ and ‘Aatmanirbhar Bharat’ encouraged Indians to explore the option of buying and selling locally made products via the direct selling route, which entails low investments and high returns. This not only boosted local manufacturing but also established a sense of ownership as well as determination amongst budding entrepreneurs to succeed. In India, the Direct Selling industry has provided additional income opportunities to its people and has significantly promoted micro-entrepreneurship. In FY 2018-19, there were 5.7 million direct sellers. These numbers are projected to grow exponentially to 18.1 million by 2025.
The sector has also empowered women in a significant way right since its inception. There are almost 2.1 million women today who are at the heart of this industry and have gone on to become successful entrepreneurs.