Direct selling biz in India to touch Rs 64,500 crore by 2025 Financial Chronicle, Dec 04, 2014 The direct selling market in India has the potential to reach Rs 645 billion by 2025, driven by increasing share of middle income households and potential of increasing penetration. The direct selling market in India has grown at a CAGR of 21 per cent over the last 5 years from Rs 33 billion in 2008-09 to Rs 72 billion in 2012-13. That’s not all, in 2012-13, the sector contributed nearly Rs 1,000 crore to the exchequer by way of taxes, said a FICCI-KPMG report on the direct selling industry in India, released on Thursday. Compared to this, the global direct selling at present is estimated to be a $ 167 billion market and employs around 90 million people worldwide. “The direct selling industry is unique in the number of people it engages directly. No other industry is able to touch so many lives, or is as close to its customers. The benefits of the industry have been recognised globally, and it holds large potential in India as well. There is a need to create an enabling environment for the industry to thrive,” said Rajat Wahi, partner and head (consumer markets), KPMG in India. The FICCI-KPMG study said that the direct selling market in India took off in 1990s with the influx of the large global direct selling companies looking to tap the India opportunity. South India is the largest market for direct selling followed by the northern region which has witnessed a high y-o-y growth rate of 33 per cent. “While in India, health and wellness is the biggest category capturing 47 per cent share in the direct selling market followed by wellness products and household goods, globally, cosmetics and personal care is the biggest category capturing 35 per cent share globally in the direct selling market, followed by wellness products and household goods,” the study said. Significantly, the report also touched upon the vexed issue and said that direct selling is different from chit fund and ponzi schemes. It has also outlined the primary definitions of various forms of prevalent unfair trade practices and laid down certain parameters to differentiate ‘fly by night operators” from “legitimate businesses”. Wahi said that the direct selling industry has the potential to create a significant social and economic impact in India especially in the area of women’s empowerment, skill development, technology percolation and growth of the SME sector, besides promoting self-employment and providing a viable means of alternative income
Posted on: Sun, 07 Dec 2014 10:20:49 +0000
Trending Topics
Recently Viewed Topics
© 2015