The Hindu Business Line : Direct selling sector set for big growth

“Despite the economic boom, the concept of direct selling is yet to grow in its size in India. We expect the industry to touch the Rs 10,000-crore by 2012,” Mr P. Sanker, Chairman, Indian Direct Selling Association (IDSA), told Business Line.

He said proactive regulations from the Government would help the industry get more organised, attract legitimate players and protect consumer interests.

“IDSA has been petitioning the Government to regulate the industry. A set guideline would help to protect the interest of the consumers as well as the industry players, besides keeping a check on fly-by-night operators. Unscrupulous operators are a bane to the industry,” he said.

Employment generation

Direct selling is an evolved concept in the West, he said, adding, “the model if replicated in India could cut down on distribution and warehousing costs significantly”.

Pointing out that the total number of sales people have risen substantially, Mr Sanker said an estimated 13 lakh people work in the industry. “Out of these, eight lakh people are in active business, people who buy or sell products through direct selling.”

New entrants

The direct selling companies too, are seeing new entrants into its fold.

Some of the fastest growing sectors are in nutrition, kitchen and insurance, he said, adding that direct selling now reaches 2,600 towns and covers 50 major cities, including metros.

‘Lack of awareness’

The total number of product lines will be increased to 237 with as many as 2,100 variants.

On the challenges faced by the industry, Mr Sanker said that lack of awareness about the industry is a major impediment.

The sector, if channelised properly, has immense potential to generate employment for women.

“The boom will be a result of good fundamentals, including large population and high purchasing power. Women, incidentally account for as much as 65 per cent of sales persons,” he said.

The global direct selling industry is estimated at $105 billion and around 4,000 companies across the world are members of the World Federation of Direct Selling Association through its 53 affiliates like the IDSA in India.