Despite a global decline in retail sales, India’s direct selling industry has bucked the trend, moving up to 11th position in the World Federation of Direct Selling Association (WFDSA) ranking for 2022.

With retail sales of $3.23 billion (around ₹26,852 crore), India registered a growth of 5.4% over the previous year. On a constant dollar basis, India achieved the highest Compounded Annual Growth Rate (CAGR) of over 13.3% during the last three years.

The WFDSA report attributed India’s strong performance to a number of factors, including a growing middle class, rising disposable incomes, and increasing awareness of direct selling products and services. The report also noted that the introduction of the Consumer Protection (Direct Selling) Rules 2021 has created a more favorable environment for the industry in India.

Top 5 Global Markets in Sight

The chairman of the Indian Direct Selling Association (IDSA), Rajat Banerji, expressed optimism about the industry’s future prospects, stating that India has the potential to become one of the top five global markets for direct selling in the next decade.

Banerji cited a number of factors in support of his claim, including India’s large and growing population, its young and aspirational workforce, and its rapidly increasing internet penetration. He also emphasized the government’s supportive stance towards the direct selling industry, which is evident in the introduction of the Consumer Protection (Direct Selling) Rules 2021.

Attracting Global Direct Sellers

Banerji urged global direct sellers to set up operations in India, calling it a “land of opportunity.” He pointed out that only three of the top ten direct sellers in the world are currently operating in India, and that there is immense scope for growth and expansion.

The IDSA chairman also assured global direct sellers that the Indian government is committed to creating a conducive environment for their businesses to thrive. He cited the recent decision to allow foreign direct investment (FDI) in the direct selling sector as an example of the government’s commitment.

Conclusion

India’s direct selling industry is poised for sustained growth in the coming years. With a favorable regulatory environment, a growing middle class, and rising disposable incomes, India is an attractive destination for global direct sellers.sharemore_vert