Drect Seling

Direct
2016
The contribution of Direct Selling
to building India
KPMG.com/in | ficci.com
Table of Contents
5
3
6
Overview of 15
Direct Selling
1 in India
Executive
summary
Skill India
Make in India
Foreword
1 2 3 4 5
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
35
29
25
31
21
Startup India Challenges
in the Direct
Selling
industry
Digital India
and the way
Guidelines of forward
Women
empowerment Direct Selling
6 7 8 9 10
Foreword
FICCI
With a developing economy, and growing consumerism, be used outside this industry. By 2030, India is expected to
various store and non-store formats have evolved to cater to the have the largest labour force in the world. With over 12 million
growing retail sector in India. The Direct Selling industry in India people joining the workforce every year, the country needs to
is estimated at INR80 billion. It has grown at a CAGR of over create job opportunities for all of them. The Skill India initiative
13 per cent between 2010 and 2015 and is one of the fastest is aimed at bridging this gap between understanding the needs
growing non-store retail format, recording a double digit growth. of the market and preparing the youth for the same. It aims at
The growing Indian market has attracted a large number of local preparing a workforce of 500 million skilled Indians by 2022.
and foreign Direct Selling companies. Currently, over 5 million people are part of the Direct Selling
salesforce, with majority being women (58 per cent). Thus,
Though Direct Selling is a relatively new industry in India,
training a large network of sellers becomes the inherent task of
in less than two decades it has provided self-employment
the business.
opportunities to more than 5 million people. Besides providing
additional income opportunities to direct sellers, the industry We at the direct selling sub-committee give professional insight
also generates direct employment. Majority of the Direct Selling into the issues pertaining to this labour intensive direct selling
companies outsource production, packaging and distribution of industry. The sub-committee within itself has an advisory board
their products, thus generating direct employment across the of neutral and experienced people.
value chain while enabling the development of the SME sector.
My colleagues, at FICCI worked as a connector between the
The industry also contributes to the exchequer and in 2012-
industry and the researchers and adhered to quality and the
13 alone the industry generated INR10 billion in taxes. Many
timeline. I would like to express my gratitude to KPMG in India
Direct Selling companies have been in the forefront by actively
for this report.
contributing towards social activities.
FICCI is hopeful that this report can provide insights and
The Hon. Prime Minister, during “Make in India” launch
actionable recommendations for putting together a conducive
mentioned “if the poor get jobs, the purchasing power of
legal environment for the industry.
families will increase”. Keeping in mind the Prime Minister’s
Initiative the Ministry of Consumer Affairs, Food and Public
Distribution have released the much awaited guidelines for
Direct Selling industry aimed to bring regularity clarity to the
industry and provide a boost to entrepreneurship and skill
development.
In addition to providing income opportunities, Direct Selling also

imparts transferable skills in sales and management which can
Dr. A. Didar Singh

Secretary General, FICCI
KPMG in India
The strong emergence of Direct Selling in the Indian consumer flagship schemes — Skill India, Make in India, Digital India,
markets over the years, is seen beyond just an alternative Startup India, etc. — provide ample opportunities to the
distribution channel. The concept of Direct Selling in India, Direct Selling industry, and directly contribute to the country’s
which was arguably started in the 1980s, has become a strong economic growth.
parallel marketplace model and is estimated to be an INR801
However, the industry has witnessed lower entry rates of
billion industry currently. Various major international brands
domestic companies into the direct selling arena owing to
entered the Indian markets and national brands altered their
the lagging regulatory landscape in this industry. The recently
strategies to capitalise on the model.
introduced Direct Selling Guidelines 2016, which are yet to be
The economic reforms in the early 1990s also started affecting ratified into statutory regulation, are expected to change the
consumer behaviour significantly, making inroads into the dynamics of the industry players — new as well as the existing
success of brands practising Direct Selling model. Currently, ones.
Direct Selling is a pronounced form of selling due to its
This report, by KPMG in India and FICCI, investigates potential
progressive approach to involve common citizens as part of
opportunities in Direct Selling offered by various flagship
the strategy to enlarge its distribution network. Direct Selling
initiatives. It provides an overview of ways which can be linked
in India is gaining momentum by expanding its distribution
to the ongoing development processes to develop capacities
channels to market various goods and services. One of the
in the industry. Direct Selling plays a significant role in creating
major advantages offered by Direct Selling is its ability to cater
employment opportunities, imparting soft skills and marketing
to both Business-to-Business (B2B) and Business-to-Consumer
and leadership training, especially through the Skill India
(B2C) channels. It has not only emerged as one of the fastest-
initiative. It certainly has much more potential than what it has
growing non-store retail formats in the country, but is also seen
realised so far.
as a proactive constituent that can boost several key social and
economic parameters of the country.
There is thus, a need to ponder on the credible ways to

capitalise India’s potential — a large consumer base, workforce
possessing great sales capability, educated non-working
class (especially housewives), tech-savvy generation and
entrepreneurship skills — to push the Direct Selling industry. In
the current economic scenario, it is pertinent to re-assess the
unrecognised scope of Direct Selling for the society as well
as for the larger benefit of the economy. The government’s
Rajat Wahi
Partner and Head,
Consumer Markets, KPMG in India
1. As per the analysis and research of KPMG in India based on KPMG - FICCI report Direct
2015; Retrieved on 13 October 2016
3
Executive summary
© 2016
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4
Direct Selling essentially refers to selling products directly to consumers away from a fixed retail outlet.
The Direct Selling industry in India is estimated at INR80 billion2. It has grown at a CAGR of over 13 per
cent between 2010 and 2015. While the Direct Selling industry entered India in the 1980s, it picked up
traction only post 1995 when global companies like Amway, Avon, Oriflame and Tupperware entered
India. Around the same time Modicare was one the first few Indian companies to adopt this channel of
distribution.
Today, the industry is one of the fastest growing non-store retail formats in the country. Along the
way, it has positively contributed to several social and economic parameters. Its contribution can be
successfully mapped to the flagship schemes launched by the Government of India in the past two
years.
and processes to enable the MSMEs measures in the digital sphere that not
Skil India: to manufacture products. Many Direct
Selling companies also invest in providing
only benefit the Direct Selling entities,
but also ensure ease of doing business
The Skill India scheme seeks to provide
the institutional capacity to train a the right equipment and machines to for its distributors and improved
minimum of 500 million people by 20223. the MSMEs for production. Driven by experiences for its end consumers.
The initiative is a multi-skill development these initiatives, several MSMEs have Mobile applications and websites
programme, working towards nationwide now developed capabilities to cater to have been launched by Direct Selling
job creation and entrepreneurship. Due the needs of other MNCs and have companies for its distributors to order
to the personalised marketing nature of commenced supplying to them, in the products, monitor payments and access
the Direct Selling industry, it is inherently process promoting the Make in India training modules. A large section of the
involved in training its retail partners. The initiative. Direct Selling salesforce that comes from
industry annually trains over five million tier II, III and rural areas of the country
is getting exposed to digitised means of
people in marketing and communication
skills, personality development and Women Empowerment: communication. Due to its large network,
the industry’s contribution to the Digital
leadership skills4. It also imparts The Government of India has initiated
manufacturing know-how, technology various schemes to improve the social India initiative is immense.
and processes to enable its associate standing of women in the country and to
MSMEs to manufacture products. empower them to become independent.
Training its business partners (individuals
and MSMEs) forms the core proposition
A total of 15 dedicated schemes have
been launched in this regard5. Due to the
Startup India:
The scheme was launched to promote
of Direct Selling. dominance of women centric products
startups in India and establish a
offered under Direct Selling, the industry
conducive environment to foster their
provides self-employment opportunities
Make in India:
The Make in India scheme aims to make
to a large number of women. In 2015
alone it has provided self-employment
growth. By imparting technology and
management knowhow and skills to its
associate MSMEs and retail partners,
the country a global manufacturing hub to over three million female distributors2.
Direct Selling has been creating
and boost industrial growth. It looks to It further gives women the flexibility
successful companies and entrepreneurs.
enhance manufacturing through various to manage their time and balance their
Several MSMEs that were once exclusive
efforts directed towards facilitating work and personal lives. By providing
manufacturers for various Direct Selling
investment, fostering innovation, income generation opportunities and
entities, are now catering to global
protecting intellectual property and training, Direct Selling promotes holistic
FMCG clients. Direct Selling has also
building best-in-class manufacturing development of women.
promoted startups in avenues such as
infrastructure. Many Direct Selling transportation and logistics, training, app
companies rely on Micro, Small and
Medium Enterprises (MSMEs) for Digital India: development, etc. Since a large portion
of the Direct Selling value chain can be
manufacturing their products. In most The scheme aims to help transform
outsourced, fresh ideas from budding
cases, Direct Selling companies impart India into a digitally empowered society
entrepreneurs across the value chain are
manufacturing know-how, technology and self-reliant knowledge economy.
always welcomed by the industry.
The Direct Selling industry is adopting
2. Discussions with industry players including Amway India http://www.dget.nic.in/upload/uploadfiles/files/ Tpqlr4H1ILsusuBRJlizHI/India-to-see-severe-shortage-of-jobs-in-

Enterprises, Avon, FDSA, Oriflame and Vestige and KPMG NationalPolicyonSkillDevelopment.pdf; Retrieved on 21st Nov the-next-35-years.html; Retrieved on 1st Nov 2016
analysis 2016 5. News article; http://wcd.nic.in/schemes-listing/2405; Retrieved
3. National Policy on Skill Development Document; 4. News article; http://www.livemint.com/Politics/ on 11th Oct 2016
5
Overview of Direct
Selling in India
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
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Partnership
Partnership
and aand
member
a member
firm of
firm
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ofKPMG
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of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
All rights
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reserved.
reserved.
6
Direct Selling is rapidly expanding the business-to-business and business-to- commercial operations in 1998. It
distribution channels for marketing consumers aspects. Direct Selling is one was followed by companies like Avon,
various goods and services. Even though of the oldest modes of sale, and bears Oriflame and Tupperware in 1996.
the definition of Direct Selling varies similarities to the traditional consumer Around the same time Modicare was
across different countries, it can be goods model. one the first few Indian companies to
understood as “selling of goods and adopt this channel of distribution. Today,
Direct Selling witnessed aggressive
services to the consumers away from the Direct Selling market in India is
growth post liberalisation when many
a fixed retail outlet, generally in their estimated to be around INR80 billion,
global companies entered India. Amway
homes, etc., through explanation and having grown at a CAGR of over 13 per
was one of the first major global Direct
demonstration of the product by the cent between 2010 and 2015.
Selling companies to enter India in
direct sellers.’’ Due to its specialised
the year 1995, though it started its
nature, Direct Selling covers both
Direct Selling market in India6
Direct Selling in India is an oligopolistic Market Share of major players in 2015

market with the top six companies
controlling over 80 per cent of the
market. While, Amway India Enterprises
maintained its leading position in Direct
Selling in 2015, with a 29 per cent value
share, Avon registered the strongest
growth of 24 per cent between 2014
and 20157. Other players in the market
like Tupperware and Oriflame also
hold significant shares of the industry.
International companies together
account for a dominant 90 per cent of
the organised market.
Source: Euromonitor Report on Direct Selling in India, January 2016; Retrieved on 12 October 2016
5. As per the analysis and research of KPMG in India based on

KPMG - FICCI report Direct 2015; Retrieved on 13th Oct, 2016
6. Direct Selling in India- Euromonitor International: January 2016;
Retrieved on 12th Oct 2016
7
Even though a host of small and per cent between 2014 and 2015. On the country, it has also created a positive
micro-sized domestic companies are other hand, consumer appliances like impact with respect to several social and
operational in India, the industry is yet vacuum cleaners emerged as the least economic parameters. The industry’s
to see aggressive participation from popular category for Direct Sellers. contribution to the country can be
within the nation largely due to the late mapped to several flagship schemes
With the right policy initiatives, the Direct
entry of regulations for this industry. by the Government of India in the past
Selling industry may touch INR645 billion
However, the Direct Selling Guidelines two years. Direct Selling has been
in 20258. This growth is expected to
2016 introduced in September 2016 playing a significant role in Skill India by
be driven by the rising share of middle
are the harbinger of recognition and providing employment opportunities and
income households, urbanisation and
protection for Direct Selling companies. imparting soft skills and marketing and
lifestyle changes and the ever-increasing
Its ratification into a statutory regulation leadership trainings to the five million
reach of the Direct Selling industry. The
is expected shortly. This will likely invite plus people in its network. It has also
advent of the Direct Selling Guidelines
larger participation from individuals and contributed immensely to the Make in
2016 and their subsequent expected
companies to the industry. India, the Digital India and the Startup
ratification are sure to drive the growth
India initiatives of the Government and in
The sales in the Direct Selling sector in of the industry and shall also motivate
empowering the women of the country.
India are dominated by the Consumer domestic and global companies to join
The industry continues to innovate and
Health segment, closely followed by the sector and opt for Direct Selling as a
invest in these initiatives.
the Beauty and Personal care segment. preferred distribution channel.
Food and Drink direct selling registered
While Direct Selling is one of the fastest
the strongest YoY value growth of 34
growing non-store retail formats of the
8. KPMG FICCI report – Direct 2015; Retrieved on 13th

Oct 2016
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
Registered
Partnership
Partnership
and aand
member
a member
firm of
firm
the
ofKPMG
the KPMG
network
network
of independent
of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
All rights
All rights
reserved.
reserved.
8
9
Skill India
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
Registered
Partnership
Partnership
and aand
member
a member
firm of
firm
the
ofKPMG
the KPMG
network
network
of independent
of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
All rights
All rights
reserved.
reserved.
10
The Direct Selling industry trains over 5 million people annually in marketing and communication skills,
personality development and leadership skills. It also imparts manufacturing know-how, technology and
processes to its associate MSMEs to enable them to produce excellent products. Training its business
partners (individuals and MSMEs) forms the core proposition of the Direct Selling industry
Skill India – an overview9

By 2030, India is expected to have Skills Day, Hon. Prime Minister Narendra • Pradhan Mantri Kaushal Vikas
the largest labour force in the world. Modi launched four initiatives under the Yojana (PMKVY) scheme - to
With over 12 million people joining the programme. They include: incentivise skill training by providing
workforce every year, the country needs financial rewards to candidates who
• National Skill Development
to create job opportunities for all of successfully complete approved skill
Mission - to provide a strong
them9. The Skill India initiative is aimed at training programmes
institutional framework at the Centre
bridging this gap between understanding
and states for implementation of • Skill Loan scheme - to provide
the needs of the market and preparing
skilling activities in the country loans to the youth of India seeking
the youth for the same. It aims at
to attend various skill development
preparing a workforce of 50010 million • National Policy for Skill
programmes.
skilled Indians by 2022. Development and Entrepreneurship
2015 - to provide an umbrella
The Ministry for Skill Development
framework to all skilling activities
and Entrepreneurship was set up in
being carried out within the country
November 2014 to add impetus to the
Skill India agenda. On 15 July 2015, on
the occasion of the first ever World Youth
Contribution of Direct Selling to the Skill India initiative

Current business practices on Skill bring their production facilities and skills Vestige trained approximately 4,000
development in Direct Selling industry to higher standards through the transfer people under its Vestige Leaders
Direct Selling is a labor intensive of processes and management know- Conference (VLC) programme. This
industry. The goods manufactured how. training is conducted for senior
by the Direct Selling companies are distributors to help them grow in the
Direct Selling companies sponsor
retailed by independent business business and learn to impart trainings
training of their retail partners – the
owners. The industry thus provides to other distributors. The company has
underserved sections of the society,
income opportunities to the unskilled also introduced a module called How to
the under-qualified and the unskilled
and under-skilled manpower in the sell like a pro, which is an amalgamation
workforce, who take up Direct Selling as
country. Currently, over five million of soft skills, marketing soft skills and
a secondary occupation to supplement
people are part of the Direct Selling marketing skills. Approximately 1,000
their incomes. The industry trains
salesforce, with majority being women people have been trained under this
them in salesmanship and soft skills. It
(58 per cent)11. Thus, training a large programme till date. Similarly, Amway
prepares the youth, from across various
network of sellers becomes the inherent India conducts 18,000-20,000 training
segments of the society, in productive
task of the business. The Direct Selling sessions for approximately 550,000
work and creates enormous opportunity
Guidelines 2016 have made it mandatory people per annum. Oriflame conducted
for them outside the industry too. Direct
for the companies to conduct orientation 3,000 training sessions over the past
Selling plays a critical role in personality
programmes for all Direct Sellers. year with each batch constituting 20-100
development of individuals by improving
Additionally, Direct Selling helps MSMEs people.
and polishing their personal skills.
9. KPMG report – India soars high, February 2016; Retrieved on http://www.dget.nic.in/upload/uploadfiles/files/ 11. News article; http://www.livemint.com/Politics/
18th Oct 2016 NationalPolicyonSkillDevelopment.pdf; Retrieved on 21st Nov Tpqlr4H1ILsusuBRJlizHI/India-to-see-severe-shortage-of-jobs-in-
10. National Policy on Skill Development Document; 2016 the-next-35-years.html; Retrieved on 1st Nov 2016
11
Gender split of Direct Selling sales force12
Source:
Largely, three kinds of training are power, public speaking, etc. These Direct Selling companies impart the
imparted by the industry: trainings instil self-confidence and manufacturing know-how, technology
marketing skills in the salesforce. and processes to enable the MSMEs
1. Product and technical training:
Skills presentation and public speaking to manufacture products. Small time
The common pool of salesforce goes
are also strengthened through manufacturers are guided with respect to
through these training sessions.
meetings with groups of consumers skill and technique, and learn to grow and
In-depth knowledge of the products
and demos of the products. manage their scale of production. Driven
is imparted for making the salesmen
by these initiatives, several MSMEs
aware of the specifications and 3. Leadership and personality
have now developed capabilities to cater
applications of the product that improvement: Special training
to the needs of other MNCs and have
subsequently results in generating sessions are imparted to senior Direct
commenced supplying to them.
sales. Since the Direct Selling Sellers who have spent sufficient
companies constantly spend on time in the industry and have gained In a nutshell, the Direct Selling Industry
research and development and launch certain level of experience to help is expected to continue its momentum of
new range of products, instilling them inculcate leadership skills. Since creating self-employment opportunities
product-related information and senior distributors have a strong and and making India’s youth skilled. Through
technical know-how amongst the wide network of their own, they are honing the skills of Indians since two
sellers is a crucial training module. imparted skills required to run their decades, the industry has contributed
Such trainings are conducted by own business. Their trainings focus on to India’s economic as well as social
professionals from related industries, entrepreneurship and management development. With the growth in the
e.g. doctors from renowned hospitals skills, communication, and accounting industry, it is projected to associate with
are invited for training of health skills. These distributors further nearly 18 million Direct Sellers, including
and skin products, while dieticians conduct training for other Direct 10 million women, by 202513, all skilled
are invited for training on nutrition Sellers. on its floors.
products.
Direct Selling also imparts management
2. Marketing and soft skills: The and technology transfer to its associate
common pool of sales force is also MSMEs. Many Direct Selling companies
imparted interpersonal skills such rely on MSMEs for manufacturing
as good communication, convincing their products. In a lot of cases, the
12. News article; http://www.livemint.com/Politics/ 13. KPMG FICCI report - Direct selling - A global industry
Tpqlr4H1ILsusuBRJlizHI/India-to-see-severe-shortage-of- empowering millions in India; Retrieved on 28th Oct 2016
jobs-in-the-next-35-years.html; Retrieved on 1st Nov 2016
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
Registered
Partnership
Partnership
and aand
member
a member
firm of
firm
the
ofKPMG
the KPMG
network
network
of independent
of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
All rights
All rights
reserved.
reserved.
12
Examples of Skill India implementation by Direct Selling entities14
Skil India at Amway Opportunity Foundation executes Amway’s vision of enabling the less privileged
children to lead a better life through projects such as the National Project for Visually
Amway India
Impaired. Under this project, Amway helped in establishing a fully functional computer
centre for the visually impaired in Madurai in 2008. Since then, it has set up 12 such
centres across the country benefitting approximately 7,500 people till date.
Enterprises
“Train a person to earn bread and butter rather than give him bread and butter”,
is the philosophy followed at International Marketing Corporation, an FDSA associated
company. All eight FDSA companies show great interest and innovation in training
its people with dedicated trainings for new joiners and the leaders. My Recharge is
Skil India at an authorised training partner of the National Skill Development Corporation. Oriens
Global Marketing organises weekly training sessions for the newcomers under OBM
FDSA (Opportunity Business Meeting) by its leaders (CEO, COO, CFO). For leaders, it conducts
monthly meetings and trainings under the Leaders Training Programme. Under the Team
Task Force programme, quarterly meetings are organised to recognise achievers, and
product and business trainings are imparted to the distributors. Mega Life Style Program
is conducted once in every six months to recognise promotions and give product training
to people by specialist product trainers.
Oriflame has conducted 3,000 trainings last year with each constituting a batch of up to
Skil India at 100 people. The trainings focus on confidence building and personality development, with
a special focus on presentation and marketing skills. Trainings are divided into two types:
Oriflame
TTT (Training the Trainer) and PPP (Power Pack Presentation). They are segregated based
on the seniority of the trainees. Senior people at the company get the opportunity to get
trained by renowned management speakers like Shiv Khera.
Vestige Heart to Heart Foundation, the CSR arm of the organisation executes Vestige’s
vision of enabling the less privileged children to lead a better life by working closely with
various organisations and working in remote places like Dindigul, Tamil Nadu.
India has about 20 million orphans and a huge opportunity slips away from a nation when
these kids are left unattended. Thereby, by providing for the education, healthcare and
nutrition of 160 children in Anbaras, a project supported by the company, Vestige has
Skil India at taken a step to empower these orphans become a significant part of the economy and
work in line with the Skill India scheme initiated by the government. Today, these children
Vestige can imagine, dream and hope of a bright future.
Apart from the CSR initiative to work for the development of the children’s skills, Vestige
is working hard to develop and enhance the skills of the independent distributors of the
company. Vestige conducts various training sessions like Vestige Leadership Conclave,
Meet the Millionaire, Personal Care and Healthcare training, etc. where the company
helps develop specialised skills in fields like sales, leadership development, healthcare
education, etc.
14. Discussions with industry players including Amway India

Enterprises, Avon, FDSA, Oriflame and Vestige and KPMG
analysis
13
Potential opportunities for Direct Selling companies from the Skill India initiative15
Access to trained workforce qualified and certified trainers/assessors Selling industry. The Government plans
The Government plans to launch the for relevant trainings for their retail to work closely with the MSME sector
Labour Market Information System partners. to establish apprenticeship opportunities
(LMIS) as part of the National Portal. in the country. Such programmes shall
The LMIS shall provide information Empowering woman entrepreneurs motivate the workforce to work in the
on the demand and supply of labour Women form the majority of the work MSME sector and help strengthen the
and market trends. By accessing the force of the Direct Selling industry. quality of its workforce.
LMIS, the Direct Selling companies can Empowerment of woman entrepreneurs
recruit trained retail partners that match through the Skill India initiative is Infrastructure
their requirements and needs, thereby expected to significantly push the growth By designing suitable incentive schemes
benefitting both parties involved. of the industry. Woman entrepreneurs by the Government under the Skill India
shall be given priority for mentorship and initiative, existing infrastructure both in
Access to trainers other support systems and incentives terms of buildings and potential teachers
The Government plans to establish a under the Skill India initiative. would be optimally leveraged for skill
trainer/assessor portal, as part of the training. Since the business of Direct
Empowering entrepreneurs (MSMEs)
National Portal, which shall act as a Selling is heavily dependent on the skills
repository and registration database Direct Selling facilitates growth of of its retail partners, routine trainings and
for all certified and interested trainers/ MSMEs as production of majority of the subsequent infrastructure requirement
assessors. This portal can be accessed products is outsourced to them. MSMEs, for the same can be resolved by offerings
by the Direct Selling companies to recruit thus, form the backbone of the Direct of the Skill India initiative.
15. Policy document - National Policy for Skill Development

and Entrepreneurship 2015; Retrieved on 21st Oct 2016
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
Registered
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Partnership
and aand
member
a member
firm of
firm
the
ofKPMG
the KPMG
network
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of independent
of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
All rights
All rights
reserved.
reserved.
14
15
Make in India
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
Registered
Partnership
Partnership
and aand
member
a member
firm of
firm
the
ofKPMG
the KPMG
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network
of independent
of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
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reserved.
16
Most Direct Selling companies rely on MSMEs for manufacturing their products. In a lot of cases, the
Direct Selling companies impart the manufacturing know-how, technology and processes to enable
the MSMEs to manufacture products. Many Direct Selling companies also invest in providing the right
equipment and machines to the MSMEs for production. Driven by these initiatives, several MSMEs
have now developed capabilities to cater to the needs of other MNCs and have commenced supplying
to them, in the process promoting the Make in India initiative.
Make in India – an overview16

The manufacturing sector in India infrastructure. The initiative is based on introduced under each. The key
registered a growth of 3.1 per cent four fundamental principles: sectors include automobile and
in 2015-16 (April-December), higher related components, aviation, biotech,
than its growth in the same period in New processes chemicals, construction, defence,
2014-15 (1.8 per cent)17. However, the By introducing new de-licensing and de- machinery, electronic systems, food
country faces challenges in the sector regulation measures, the Government is processing, IT and BPM, leather, media
such as low capacity utilisation, weak working towards reducing complexities and entertainment, mining, oil and gas,
global demand, declining exports, and increasing efficiency. Ease of doing pharmaceuticals, ports and shipping,
currency fluctuation and the impact of business has been identified as a critical railways, renewable energy, roads and
two successive below par monsoons factor to attract investments. highways, space, textiles and garments,
in 2014 and 2015. Accelerating growth New infrastructure thermal power, tourism, hospitality and
of the manufacturing sector is key to Various regions have been identified wellness.
stimulate higher economic growth of the as potential investment destinations.
nation. To this effect, the Make in India New mind-set
The manufacturing infrastructure and Make in India symbolises an attitudinal
initiative was launched in September innovation capacity are expected
2014, with the aim to increase the share shift in the country for investors, by
to witness growth owing to the limiting interventions in setting up and
of manufacturing sector in the GDP development of smart cities and
to 25 per cent by 2022. The scheme operating manufacturing units
industrial clusters across these regions
is an effort by the Government of
India to give a comprehensive push to New sectors
industrial growth by building a business Twenty five key sectors have been
friendly regulatory environment and identified and reforms such as
strengthening the manufacturing liberalisation of norms have been
Contribution of Direct Selling on the Make in India scheme

Current business practices on MSMEs. Till 2011, only 30-35 per cent of player to start manufacturing in India
manufacturing in Direct Selling their total products were manufactured in 1996. It acquired its second facility
industry in their own facilities. Nearly two-thirds in 2013. Avon and Tupperware, which
Direct Selling picked up traction in of the production was manufactured entered India in 1996, set up their first
India only post 1995 when global through the MSMEs. However, overtime plants in 2010. Amway India Enterprises,
players like Amway, Avon, Oriflame the companies started taking note of the largest Direct Selling company
and Tupperware entered India. One of the growing opportunity within the in India, inaugurated its first plant in
the entry conditions for these players country, and they started setting up own December 2015.
was the mandatory association with manufacturing facilities. Oriflame, which
entered in 1995, was the first global
16. KPMG report – India soars high, February 2016; Retrieved on pdf/2016/04/KPMG-Flash-News-India-Economic-Survey-2015-
18th Oct 2016 16%E2%80%93Key-Highlights-3.pdf; Retrieved on 4th Nov 2016
17. News article; https://home.kpmg.com/content/dam/kpmg/
17
The Direct Selling companies impart the

manufacturing know-how, technology
and processes to enable the MSMEs to
produce leading products. Many Direct
Selling companies also invest in providing
the right equipment and machines to
“This plant holds a pride-of-place in the the MSMEs for production. Driven by
these initiatives, the manufacturing
Amway family, and was inaugurated by expertise of these MSMEs is developed
Hon. CM of Tamil Nadu, Dr J Jayalalithaa. to global standards, and many of them
have started catering to larger Indian
Visitors have included the TN Minister of and international players. Policies of the
Industries, Secretary Consumer Affairs, global Direct Selling companies also
get cascaded down to these MSMEs,
consumer policy experts – all, who agree making the latter adopt certain global
that the plant is truly world-class,” says standards in their operational ecosystem.
CEO of Amway India, Anshu Budhraja Expecting the pace of growth of the
Direct Selling industry to sustain and
with dedicated guidelines for the industry
coming through, all major players are
expanding domestic production, either
through setting up their own plants or
through outsourcing to local MSMEs
Manufacturing footprint of Direct Selling companies in India

Amway India Enterprises in the U.S. and China, with product • The facility in Dehradun became
• Amway India has commissioned an assembly being completed in India. operational in April 2010, and has an
INR 5.5 billion facility in Nilakottai in The company eventually plans to fulfill annual production capacity of 55.8
the Dindigul district of Tamil Nadu18. 100 per cent of its demand in India million units21. It produces 70 per cent
The plant is spread over 50 acres and from its own manufacturing facility. of the total products sold in India.
has nine production lines for nutrition, • It has undertaken a massive • Avon is associated with 4-5 third party
cosmetics and oral care products19. groundwater harvesting project manufacturers who produce aerosol
Through this facility, the U.S. player around this plant, covering 10 villages, products, soaps, costume jewellery,
plans to expand its existing product and has reported a reverse migration bags and other fashion accessories.
base and launch new products in the of some farmers from the city, as They constitute 20 per cent of Avon’s
country. the water table has already seen total goods manufactured. This share
• Currently, Amway’s own unit improvement. is expected to remain constant, as
manufactures 40 per cent of the total Avon wants to focus on production
Avon of its core product, cosmetics, while
demand in the country. It currently
has tie-ups with seven MSMEs, • Avon has been operating in India outsourcing production of non-
and the combined production units since December 1996. It operates cosmetics items.
manufacture around 60 per cent one manufacturing unit in the country
in Dehradun, Uttarakhand. Its key • Ten per cent of the total demand is
of their 140+ products in India. met through imported products.
Imports are negligible (less than 1 training centres are located in the
per cent). Imports largely consist of cities of Delhi, Mumbai, Chandigarh,
raw materials from its mother plants Guwahati, Bengaluru and Kolkata20.
18. News article; http://www.industryweek.com/expansion- industry/cons-products/fmcg/amway-sets-up-rs-550-crore- page; Retrieved on 22nd Oct 2016
management/amway-opens-first-manufacturing-plant-india; manufacturing-plant-in-tamil-nadu/articleshow/50352753. 21. News article; http://www.business-standard.com/
Retrieved 21st Oct 2016 cms; Retrieved on 21st Oct 2016 article/companies/avon-to-set-up-new-plant-down-
19. News article; http://economictimes.indiatimes.com/ 20. News article; http://www.in.avon.com/PRSuite/history. south-112062500003_1.html; Retrieved on 22nd Oct 2016
© 2016
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an Indian
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affiliated
affiliated
with with
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Cooperative
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(“KPMG
International”),
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18
Federation of Direct Sellers in Noida started operations in • Ninety per cent of the demand in
Association (FDSA) December 199623 and has a capacity India is sourced through domestically
• All eight member companies of the of producing 80 million units per year9. produced goods. Twenty per cent of
FDSA tie up with MSMEs and act as The second plant in Roorkee, spread all the goods produced in India are
their marketing arm. Most members over 1.4 acres, was acquired in 2013 used for exports.
of FDSA outsource production of in a bid to meet growing demand of
Tupperware
over 75 per cent of their products to wellness products in India and Asia.
In all, 216 Oriflame products are • Tupperware started its operations in
MSMEs, with the exception of RCM,
manufactured in its own facility, out India in December 1996. However,
International Marketing Corporation
of the total 366 products in its Indian it was only in 2010 that Tupperware
and Oriens Global Marketing that
portfolio9. The factory makes gels, started manufacturing at its Dehradun
produce a large percentage of demand
creams, shampoos and decorative facility24. It also outsources production
in India in their own factories.
cosmetics (lip glosses and mascara) to its partners in various locations
Oriflame and hot filled products. across India, including Hyderabad and
• Oriflame currently has two Bengaluru25
• Apart from these facilities, the
manufacturing units in the country,
company has tie-ups with 11 sub-
in Noida and Roorkee22. The plant
contractors/third-party manufacturers.
Potential opportunities and impact on Direct Selling companies from the Make in India
scheme
Policies within the Food Processing sponsored scheme, the National AYUSH Industries (MoFPI) for guiding foreign
and Wellness sectors Mission (NAM) has also been initiated to investors investing in the food processing
Out of the 25 key sectors identified and support cultivation of medicinal plants on sector.
targeted by the Make in India scheme, farming lands. This will ensure consistent
National Manufacturing Policy
the two sectors that directly impact raw material supply to the Direct Selling
companies. The National Manufacturing Policy under
the direct selling industry are Food
the Make in India scheme addresses
processing and Wellness. While Food Key policies in the food processing areas of regulation, infrastructure, skill
and Drink Direct Selling registered the industry include the setting up of the development, technology, availability
strongest value growth of 34 per cent in Food Processing Fund of INR20 billion of finance, exit mechanism, and
2015 over 2014, Consumer Health and in NABARD for extending affordable other crucial growth factors of the
Beauty and Personal Care continued to credit to designated food parks and manufacturing sector. The Policy
be the most popular product type sold the individual food processing units specially targets the Small and Medium
via direct selling26. in the food parks. As on 31 May 2016, Enterprises (SME) by offering special
Under the Wellness sector, various around 25 per cent of the fund has benefits such as:
steps have been taken to promote been sanctioned to 12 mega food parks
projects as term loans. Reserve Bank of • Liberalisation of norms for investment
Ayurveda drug manufacturing
India has classified loan to food and agro- by banks, venture capital funds
(nutraceuticals, food supplements,
based processing units and cold chain and insurance companies in SMEs
cosmetics and rejuvenates). Players
under agriculture activities for Priority focused towards manufacturing
like Amway, Oriflame and Avon that
offer products in the wellness space, Sector Lending (PSL). This is expected to • Inclusion of lending to SMEs in
can benefit by manufacturing and attract large investments in the sector. manufacturing under Priority Sector
catering to the surging demand of Fiscal incentives have also been instated Lending
Ayurveda, Yoga, Naturopathy, Unani, by central and state governments • Tax concessions
Siddha and Homoeopathy (AYUSH) including capital subsidies, tax rebates,
and herbal products in India. The depreciation benefits, as well as reduced SMEs, which have historically formed
Central Sector Scheme, introduced custom and excise duties for processed the backbone of manufacturing for
by the Government, provides support food and machinery. In all, 134 cold chain Direct Selling companies in India, are
for conservation, development and projects are also being set up to develop expected to witness tremendous boost
sustainable management of medicinal stable supply chain infrastructure. A in manufacturing activities as a result of
plants to leverage on India’s vast tracts single window Facilitation Cell has been various incentives under the Policy.
of natural flora and fauna. A centrally set up by Ministry of Food Processing
22. News article; http://www.cosmetics-technology.com/news/ Oct 2016 article2692098.ece; Retrieved on 23rd Oct 2016
newsoriflame-india-acquires-manufacturing-unit-in-roorkee; 24. News article; http://www.tupperwareindia.com/about-us/ 26. Direct Selling in India- Euromonitor International: January 2016;
Retrieved on 27th Oct 2016 heritage; Retrieved on 23rd Oct 2016 Retrieved on 12th Oct 2016
23. News article; https://corporate.oriflame.com/About_Oriflame/ 25. News article; http://www.thehindubusinessline.com/companies/
Global-Operations/Manufacturing-facilities/; Retrieved on 27th tupperware-plans-to-ramp-up-production-at-dehradun-plant/
19
Ease of doing business in India industrial licence, etc. has been launched IP Policy. It aims at reducing transaction
Many large direct selling companies in to boost investments into the country. costs, improving transparency in
India are renowned MNCs. However, the functioning of the IP offices and
With rising investment from India and
due to rigid and cumbersome laws augmenting human resources to enable
abroad, more and more MSMEs will
and poor infrastructure in India, many timely evaluation of applications.
be contracted. Advanced technical
global players face difficulties in setting knowhow and resources will be The largest categories of products
up operations here. To resolve these advanced to these associate MSMEs under Direct Selling are beauty and
issues, some of the steps taken by the to make improvements in the quality of personal care and healthcare products.
Government include setting up of the products. Direct sellers are guaranteed Such categories require continuous
Invest India- investor facilitation cell, a to be benefited by this measure, as investments in product innovation and
joint venture between the Federation a majority of the total products sold research. The largest player, Amway
of Indian Chambers of Commerce & by direct sellers in India currently are India is setting up of a high-end R&D
Industry (FICCI), Department of Industrial manufactured by third-party contractors/ center at Nilakottai, near Madurai, along
Policy & Promotion (DIPP) and the MSMEs. with its manufacturing facility27. Similarly,
state governments. The cell will help other direct selling companies like Avon
in guiding, assisting and handholding National Intellectual Property Rights and Oriflame, which have huge budgets
investors during the entire life cycle Policy 2016 for product innovation and plan to
of the business. Additionally, eBiz, a Cell for IPR Promotion & Management introduce new product ranges in India
single-window online portal offering 14 (CIPAM) has been set up under the DIPP regularly, can be expected to look at India
government services including employer to be the single point of reference for as a research and development hub.
registration, certificate of incorporation, promoting goals envisaged under the
27. News article; http://www.business-standard.com/article/

companies/amway-to-set-up-high-end-r-d-centre-in-tamil-
nadu-115021100823_1.html; Retrieved on 21st Oct 2016
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
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Partnership
Partnership
and aand
member
a member
firm of
firm
the
ofKPMG
the KPMG
network
network
of independent
of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
All rights
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reserved.
reserved.
2020
21
Woman
Empowerment
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
Registered
Partnership
Partnership
and aand
member
a member
firm of
firm
the
ofKPMG
the KPMG
network
network
of independent
of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
International”),
a Swiss
a Swiss
entity.
entity.
All rights
All rights
reserved.
reserved.
22
Direct Selling offers self-employment opportunities to a large number of people, especially women. In
2015 alone, the industry is estimated to have provided self-employment to over three million female
distributors. It gives women the flexibility to manage their time and balance their work and personal
lives. By providing income generation opportunities and trainings, Direct Selling promotes holistic
development of women.
Woman Empowerment in India - An overview

Woman constitute approximately 50 by the Government of India in this regard Indian workforce. They grant women
per cent of the total population of India, are as follows: the freedom to make life choices, along
with only 27 per cent28 of them forming with instilling in them a sense of dignity,
• Beti Bachao, Beti Padhao
part of the Indian workforce. This respect and self-worth.
figure is lower than other developing • Support to Training and Employment
The Direct Selling industry that
nations and India’s own neighbours, Programme for Women (STEP)
constitutes of 58 per cent30 women,
including Bangladesh, China, Malaysia,
• Rajiv Gandhi National Crèche Scheme presents itself as an industry in which
Myanmar and Sri Lanka29. India needs
For the Children of Working Mothers women from any part of the country can
to transform its unemployed women
contribute immensely and with relative
force into an effective human resource Such schemes grant the desired
ease.
by empowering them to participate fully support and encouragement to women
in economic life. Some of the schemes to step out and become part of the
“If the capacity of women is

built, and they are linked with
the development process, then
the development of any country
is speeded exponentially” are
words of Prime Minister of India,
Shri Narendra Modi.
28. News article; http://www.hindustantimes.com/static/indian- 3rd Nov 2016

women-leaving-workforce/index.html; Retrieved on 3rd Nov 2016 30. News article; http://www.livemint.com/Politics/
29. News article; http://www.hindustantimes.com/business/ Tpqlr4H1ILsusuBRJlizHI/India-to-see-severe-shortage-of-jobs-in-
as-india-economy-grows-female-participation-in-work-force- the-next-35-years.html; Retrieved on 1st Nov 2016
declines-ilo/story-pGjf3zWf0VpnWfevajMUsM.html: Retrieved on
23
Contribution of Direct Selling on empowering women

Providing income opportunities to constitute more than 90 per cent of the book is meant to act as motivation for
women Direct Selling network at Avon. Further, other sellers and potential members of
Direct Selling is dominated by women the Direct Selling Guidelines 2016 have the network. Companies like Oriflame
globally as well as in India. Globally, given credibility to the Direct Selling believe that by virtue of the trainings
women form approximately 75 per cent31 model in India, and more women can and the experiences that women sellers
of the Direct Selling salesforce, while be expected to join the industry due to get, they inculcate an entrepreneurial
in India this number is lower at 58 per reduced risk of harassment. The industry spirit. By managing their Direct Selling
cent30. Due to the dominant product believes that as the Direct Selling market networks, and providing trainings at their
categories marketed under Direct Selling, grows, and companies venture into own level, they imbibe confidence and
such as kitchen ware and cosmetics, and new product lines, the employment management skills to handle any type of
the flexibility of work hours the industry opportunities will increase and woman situation on their own.
offers, there is higher participation from are poised to contribute to the industry in
greater capacities. Safety
women. Direct Selling, thus plays an
essential role in empowering women. Direct Selling involves certain amount of
Training and entrepreneurship travel when it comes to communicating
The prime factor that attracts woman Direct Selling industry requires with one’s network. Safety thus plays
to this sector is the convenience no prerequisites with respect to an important role. To ensure safety of
attached to Direct Selling. The industry educational qualification or experience its Direct Sellers, companies issue
provides extreme flexibility in terms of of its retail partners. Companies are guidelines that cover list of places to live,
work burden and working hours. This themselves inherently involved in ways to travel and other such aspects
allows women from all walks of life imparting appropriate skills to their that help the company monitor and
to be actively involved in the industry, sellers. While most of these trainings ensure the security of its Direct Sellers.
without having to sacrifice on their family focus on marketing and soft skills,
responsibilities. They can work at hours Further, the Direct Selling Guidelines
various additional steps are taken by
based on their convenience. Due to 2016 have made it compulsory for Direct
these companies to provide recognition
the absence of work targets, the work Sellers to carry identification cards
and encouragement to their women
pressure experienced by Direct Sellers is and file their KYC documents with the
salesforce. Vestige recently published
also low. company they are associated with. This
a book containing testimonials of top
allows companies to keep a track of its
Companies like Avon (largely cosmetics) woman direct sellers within its ranks.
employees and provides authorisation to
and Tupperware (largely kitchen ware) The book describes the journey of
the activities, which the Direct Sellers
offer the largest self-employment women Direct Sellers and records their
undertake.
opportunities to women in India. Women experiences with the company. The
30. http://www.livemint.com/Politics/Tpqlr4H1ILsusuBRJlizHI/ 31. KPMG FICCI report – Direct Selling, a global industry
India-to-see-severe-shortage-of-jobs-inthe-next-35-years. empowering millions in India; Retrieved on 28th Oct 2016
html; Retrieved on 1st Nov 2016
31. next-35-years.html; Retrieved on 1st Nov 2016
© 2016
© 2016
KPMG,
KPMG,
an Indian
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Registered
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Partnership
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member
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ofKPMG
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of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
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Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
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24
Woman
Woman empowerment at Woman Woman
empowerment Amway India empowerment empowerment
at Vestige Enterprises at Avon at Oriflame
Vestige hosts various training Amway India joined hands Avon supports important issues Oriflame India has contributed
programmes especially for with the UP Police in the 1,090 like breast cancer and domestic towards women empowerment
women wherein it helps Woman Powerline Project, violence, and organises events through its CSR activities by
direct sellers develop their which creates awareness such as Avon Walk and Avon leading girls towards the path
distinctive skills and become on women safety across UP. Sale to provide financial support of education and helping them
better entrepreneurs. In India, Roughly 1,000 trained women and increase awareness about in bringing out their latent
where the rural areas are volunteers visit schools and these issues. In 2008, Avon talents as well as by generating
still lagging behind, Vestige colleges in the state and India launched the Avon Breast self-employment opportunities.
is helping the women in educate the girl child on the Cancer Crusade in association
Powerline Project. This project with Avon Foundation, followed Oriflame Girl Child
those parts of the nation to
had been designed by the by the “don’t turn a blind eye ‘Oriflame Girl Child’ project is
become self-independent
UP Police to provide safety to breast cancer” campaign an endeavour to spread the
and break the bonds that
to women and the girl child in 2009. Through various message that a community’s
stagnates their growth.
in face of various forms of mediums, breast cancer development is incomplete
Leading ladies from Vestige
atrocities they may face from awareness was disseminated without the education of girls.
have set milestones and have
time to time. This initiative was to reach over one million Under this project, Oriflame has
become the role models for
recognised by the UP Chief women. To strengthen its sponsored education of 1,000
thousands of other women
Minister Mr. Akhilesh Yadav, at campaign against domestic girls from a Delhi-based
who feel inspired to become
independent themselves. an affiliated project – the Power- violence, Avon launched an NGO. A grant of approximately
Angel Project, recently. initiative called “The Justice INR40 million was given to this
Another project with Palli Institutes” in March 2014 NGP for the ‘Oriflame Girl Child’
Unnayan, an NGO in Odisha, by the Global Partnership, a project. The contribution has
has been providing coaching in collaboration between Vital facilitated education of selected
self-defence and yoga to over Voices, the Avon Foundation girls in the age bracket of 4 to
250 children a year, for the past for Women, and the U.S. 17 years.
six or seven years. Department of State. The
Power of Kiss
Justice Institutes improve
This campaign is an endeavour
victim protection efforts and
to contribute to the overall
the criminal justice system’s
development and welfare of
response to domestic abuse
the girl child in India. In alliance
by facilitating a holistic
with
approach to addressing
violence against women. In Deepalaya, Oriflame has
India, local partners include promised to contribute
renowned and respected contributed INR2 from the
NGOs. Each Institute trains 50 sale of each lipstick, which will
participants, which includes 10 doubled by a charity concern
local NGO representatives, 10 formed by Oriflame founder.
law enforcement officers, 10 Hand in Hand
prosecutors, 10 judges, 10 Oriflame has invested INR300
government based service million in a Tamil Nadu based
providers. In India, two NGO, Hand in Hand. The NGO
chapters of “The Justice uses this grant to support Self
Institute” have been conducted, Help Groups and microfinance
one in Delhi (2015) and the projects for training of SHG
other in Mumbai (2016). members and women’s literacy
programmes. This project
focuses on alleviating rural
poverty by empowering women
to become entrepreneurs and
set up enterprises in order to
bring in more income to the
families.
25
Digital India
© 2016
© 2016
KPMG,
KPMG,
an Indian
an Indian
Registered
Registered
Partnership
Partnership
and aand
member
a member
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firm
the
ofKPMG
the KPMG
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of independent
member
member
firmsfirms
affiliated
affiliated
with with
KPMG KPMG
International
International
Cooperative
Cooperative
(“KPMG
(“KPMG
International”),
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All rights
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reserved.
26
The Direct Selling industry is adopting measures in the digital sphere that not only benefit the Direct
Selling entities, but also ensure ease of doing business for its distributors and improved experiences for
its end consumers. Mobile applications and websites have been developed by Direct Selling companies
for its distributors to order products, monitor payments and access training modules. A large section of
the Direct Selling salesforce that comes from Tier II, III and rural areas of the country is getting exposed
to digitised means of communication. Due to its large network, the industry’s contribution to the Digital
India initiative is immense.
Digital India- An overview

Digital India is a flagship programme and Rural Development. availability of services on mobile
launched by the Government on 1 July phones and online platforms, enabling
The vision of the Digital India initiative
2015. The programme is designed to electronic and cashless financial
focuses on three key areas:
build capabilities across infrastructure, transactions possible, etc.
manufacturing, processes, skill sets • Digital infrastructure for every
• Digital empowerment of citizens: It
and delivery platforms, which in citizen: This includes Internet
encompasses universal digital literacy,
turn would lead to the creation of a availability, digital identity, mobile
availability of digital resources in
self-reliant knowledge economy. It phones, bank accounts, safe and
Indian languages, etc.
builds on existing initiatives, and is secure cyber space, etc.
expected to impact ministries such
• Governance and services on
as Communications and Information
demand: It includes real-time
Technology, Health and Family Welfare,
Contribution of Direct Selling towards Digital India

Direct Selling companies are rapidly website for its distributors to order Direct Selling entities have also made
adopting technology and digitising their products and monitor their performance. efforts to improve the end consumers’
operations, the penetration of which Savon, another mobile application for experience through digitisation. Oriflame
can also be witnessed at the ground distributors allows them to keep track plans to launch a mobile application
level. A large section of the Direct of their savings with the company. that will allow consumers to pick the
Selling salesforce comes from the Tier Other companies have made efforts products best suited for them based on
II, III and rural areas of the country. of similar nature. Amway India has parameters like skin type. The company
They are being encouraged to use distributed 2,300 tablets amongst its also plans to shift to a cashless system
digital means to communicate within senior distributors to help them make and promote online payment33.
the network. Mobile applications and presentations and place orders. These
By digitising parts of their operations,
websites are being developed by Direct tabs are enabled to download Amway’s
Direct Selling companies have eased
Selling companies to provide avenues free product training modules, and
interaction of distributors amongst
to the sellers to learn the application of its website offers opportunity for
their network, with the company as
computers, smartphones and tablets, consumers to explore the world of
well as with the end consumers. Such
and to make communication real-time Amway India as well as enables its
measures help improve the consumers’
and more effective. 500,000+ distributors to place orders.
experience with the company, thereby
Vestige has launched a website and
Avon has collaborated with digital increasing customer loyalty.
mobile application for distributors that
platforms to facilitate payment from
allows them to order company products
distributors through SMS and to maintain
online. Over 230,000 distributors use
digital payment accounts for them. It
this application currently.32
also operates a mobile application and
32. Discussions with industry players including Amway India 33. Discussions with industry players including Amway India
Enterprises, Avon, FDSA, Oriflame and Vestige and KPMG Enterprises, Avon, FDSA, Oriflame and Vestige
analysis
27
Threat of e-commerce
Digital India has also contributed to companies cannot be sold online without It is important for the Direct Selling
the growth of e-commerce in India. prior approval from the respective industry to tackle this threat of
The growth has been witnessed from companies. Since, most e-commerce e-commerce. Greater compliance to
consumers’ side, as well as the supply websites follow a marketplace model, Direct Selling Guidelines is required on
side, as more and more sellers from they do not hold inventory of Direct the part of Direct Selling entities and
the remotest parts of the country Selling products. Records of the sellers e-commerce companies. It is essential
are joining hands with e-commerce registered with the e-commerce players for them to work collectively to ensure
companies to expand reach of their is not always accurate, and this acts that products of Direct Selling companies
products. E-commerce presents itself as as a deterrent for the Direct Selling are not sold without prior approval. It is
an alternate platform for Direct Sellers companies in identifying the culprits in also important that companies establish
to offload their inventory. Direct Sellers their network. Amway India Enterprises adequate policies to stop such acts and
offer their products online at lower has made 1,500 enquiries in the past take strict action against sellers who
prices, by cutting down their margins and year against Direct Sellers who violate violate these policies. For example,
pushing for greater sale volumes. This company policy. Over 800 suspensions Amway India uses bar codes to track the
not only impacts the overall pricing of the and more than 300 terminations have point of sale of their products and takes
company products in the market, but also been executed by the company1. actions against violators
affects the livelihoods of other Direct Similarly, owing to brand or logo
Sellers. infringement, Tupperware has forced
retailers to withdraw from the online
The Direct Selling Guidelines 2016 make
platform34.
it clear that products of Direct Selling
34. News article; http://economictimes.indiatimes.com/

industry/services/retail/direct-selling-companies-hit-
by-ecommerce-hul-eureka-forbes-embrace change/
articleshow/49531489.cms; Retrieved on 18th Oct 2016
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29
Startup India
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By imparting technology and management knowhow and skills to its associate MSMEs and retail
partners, Direct Selling has been creating successful companies and entrepreneurs. Several MSMEs
that were once exclusive manufacturers for various Direct Selling entities, are now catering to global
FMCG clients. Direct Selling has also promoted startups in avenues such as transportation and
logistics, trainings, app development, etc. Since a large portion of the Direct Selling value chain can be
outsourced, fresh ideas from budding entrepreneurs across the value chain are always welcomed by
the industry.
Startup India - An overview

The Startup India initiative was Modi unveiled the Action Plan includes initiatives on helping startups
launched on 16 January 2016 by the highlighting initiatives and schemes gain financing, simplifying the ease
Government of India. It aims to foster being undertaken by the Government of starting, operating and existing
entrepreneurship and innovation to address various aspects relating businesses, and offering incubation
by creating an ecosystem that is to developing a conducive startup partnership opportunities with the
conducive for the growth of startups. ecosystem in the country. The Action Government and industry participants.
Prime Minister of India, Shri Narendra Plan started by the Government
Contribution of Direct Selling to Startup India initiative

The typical value chain of a Direct backbone of Direct Selling operations, at global levels. They have helped
Selling entity flows from product and hence are managed internally by develop vendors by providing them with
development, to manufacturing of that most companies, all other aspects like technology knowhow and instilling in
product, to recruitment and training of manufacturing of products, packaging them effective management policies.
sellers, and subsequently packaging and transportation, and support functions By conducting various trainings for their
and transportation of products to like app development and maintenance, sellers, and imparting responsibilities to
their final destination. The extent of payment management, etc. can be leaders to conduct more trainings and
backward integration that a Direct outsourced to third parties. In the area of manage their network, the Direct Selling
Selling company follows depends on manufacturing, especially, Direct Selling companies also build entrepreneurs.
the size and core competencies of has been empowering and supporting Direct Selling thus plays an important
the entity. While R&D of products various MSMEs through technology and role in the incubation of business.
and trainings of sellers form the R&D transfer, enabling them to compete
Startup India at FDSA

Sarso Biznet International, an FDSA associated company, played a strong role in promoting indigenous
manufacturing of goods and encouragement to startups. It assisted a Punjab-based tailor in
acquiring the necessary technical knowhow and equipment to grow his tailoring setup to a garment
manufacturing factory. Another small-time shoe making enterprise was assisted by Sarso in getting
acquainted with the latest fashion and technology used in shoe making and in eventually catering to
bulk orders for contemporary fashion shoes. Apart from fulfilling orders for Sarso, the company today is
associated with international companies for shoe manufacturing.
Impact and opportunities from Startup India to Direct Selling35

Through the Startup India initiative of by MSME and boost the sector. By such schemes within Startup India could
the Government, production through providing startups access to high quality lead to high traction of entrepreneurs in
MSMEs will get tremendous boost. Intellectual Property services and manufacturing and product development
Central Government, state governments resources, startups shall be facilitated operations and will complement the
and PSUs have to mandatorily procure in protecting and commercialising growth of the Direct Selling industry.
at least 20 per cent from MSME. Such IPRs. Since manufacturing is largely
a stipulation shall encourage production outsourced by Direct Selling companies,
33. Department of Industrial Policy and Promotion: Action Plan,

January 16 2016; Retrieved on 29th October 2016
31
Guidelines on
Direct Selling
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The Direct Selling Guidelines 2016 have been the harbinger of recognition and protection for the
Direct Selling industry. A clear definition of Direct Selling by the Government will help Government
bodies, investigating agencies and the consumers differentiate between legitimate businesses and
ponzi schemes. Unauthorised sale of products on e-commerce platforms will be prevented. This will
further boost investor confidence and attract investors and foreign players into the Indian Direct Selling
market. It shall also attract more distributors to become a part of the industry. The risk of harassment of
distributors will subside, thus inviting more women to be a part of the salesforce. However, ratification
of these guidelines still remains.
The advent of the Direct Selling was established in November 2014 Meanwhile, the Indian Institute of
Guidelines 2016, is a result of countless under the Chairmanship of Secretary Corporate Affairs (IICA), the think-tank
deliberations between various Consumer Affairs. Members of the of the Ministry of Corporate Affairs,
Government ministries and the Direct IMC included representatives from was conducting its own independent
Selling industry: Department of Industrial Policy & research to understand the challenges
Promotion, Ministry of Consumer faced by the industry. Like the Secretary
• On 7 October 2014, the Department
Affairs, Ministry of Corporate Affairs, Consumer’s proposal in a meeting on 7
of Financial Services (DFS), Ministry
DFS, Department of Revenue, October 2014, IICA felt that a separate
of Finance that was then looking into
Department of Legal Affairs, law was the need of the hour and
the amendment to the Prize Chits
Department of Electronics and IT, as published a draft legislation for Direct
and Money Circulation Schemes
well as Chief Secretaries of Delhi, Selling in August 2015. One of the
(Banning) Act, 1978 held a meeting
Andhra Pradesh and Kerala. key solutions from the report was the
with representatives from IDSA,
mandatory registration of any Direct
PHD Chamber of Commerce, The Terms of Reference of the IMC were
Selling company with a centralised
FICCI, CII and ASSOCHAM to as follows:
regulator to ensure distinction between
explore the possibility of resolving
1. To examine the nature and growth of legitimate and illegitimate businesses.
the misapplication of the Act to
Direct selling/MLM companies in the This further gave rise to the need for a
the industry and exemption of the
country over the last five years clear definition of the business as well
activities of the industry from the Act.
as a nodal regulatory body to look into
However, after several deliberations 2. To examine the factors/features
the legitimacy of the business. The
of DFS with other stakeholders in that distinguish the above models
report contains parts on how legal and
the Government, DFS established of business strategy from Pyramid,
judicial approaches can be used to
that the problems of Direct Selling Money Circulation Schemes
distinguish between Pyramid schemes
industry might not be resolved
3. To examine whether or not standalone and legit Direct Selling businesses, how
by amending the Act and that the
legislation is now required to regulate a definition can be laid upon the Direct
activities of Direct Selling will be
the above business models Selling business, comparative analysis
excluded from the Act if and only a
of Indian legislation in this sector with
separate legislation with a framework 4. If so, the possible framework for such
best practices from across the globe and
of registration was created. legislation based on the existing laws
various regulatory solutions appropriate
and regulations including that in other
• It was then that the Secretary of for India’s Direct Selling industry.
countries
Consumer Affairs proposed the Through this draft, the IICA presented its
Government legislate a new law for 5. Identification of goods, services and recommendations to the Parliamentary
Direct Selling36 operational issues to be covered Standing Committee of Finance37.
under the new legislation
• Following the recommendations of
the meeting and proposal from the 6. The committee will be free to record
Secretary of Consumer Affairs, an evidence of other stakeholders such
Inter-Ministerial Committee (IMC) as IDSA, Consumer Groups etc.
36. Minutes of the Meeting - Meeting held under the Chairmanship 37. Indian Institute of Corporate Affairs report – Whitepaper on
of Secretary (FS), Department of Financial Service, 7 October regulation of Direct Selling in India, 2015; Retrieved on 21st Oct
2014; Retrieved on 21st Oct 2016 2016
33
• According to the report by the the exposure draft and establish a Direct Selling Guidelines 2016 on 9
Parliamentary Standing Committee regulatory framework and compulsory September 2016 as an advisory to the
on Finance titled the “Efficacy of registration process for all Direct state governments to be considered in
Regulation of Collective Investment Selling businesses in order to provide strengthening the existing regulatory
Schemes (CIS), Chit Funds, etc.”, a an oversight mechanism as to mechanism for Direct Selling and
similar research was undertaken whether they are legitimate direct to protect the legitimate rights and
to understand policy issues and selling businesses or Ponzi/pyramid interests of consumers.
challenges faced by the Direct schemes38
• As next step, the Department of
Selling industry and issues faced by
• The Department of Consumer Affairs, Consumer Affairs, as recommended
the public from fraudulent pyramid
Ministry of Food, Consumer Affairs by Parliamentary Standing Committee
schemes that operate under the
and Public Distribution that chaired on Food, Consumer Affairs and Public
garb of direct selling. After several
the IMC took note of all these Distribution, is also considering the
depositions from regulators and
developments. It also held several possibility of making these guidelines
stakeholders in the Government, the
consultations with stakeholders a statutory regulation once the
Standing Committee recommended
from the Direct Selling industry and Consumer Protection Bill 2015 is
that the Ministry of Finance, Ministry
members of the IMC. After several enacted in the Parliament.
of Corporate Affairs and Ministry of
deliberations, the Department of
Consumer Affairs consider the IICA
Consumer Affairs issued the Model
whitepaper and more specifically,
Overview of the Direct Selling Guidelines 2016

The Direct Selling Guidelines 2016 all prospective direct sellers information about goods, services,
have defined important aspects of the terms of contract, price, income plan,
• By means of these orientation
Direct Selling industry. By giving formal details of direct sellers, etc.
programmes and other such
definitions to Direct Selling, Direct
programmes, it is essential to provide • These entities are required to
Seller, Network of Direct Selling and
information to direct sellers on issue adequate and proper identity
Direct Selling entity, the guidelines
matters like: documents to its Direct Sellers
have countered a major challenge
being faced by this industry since years. –– Reasonable remuneration • The entity must also provide to all
These definitions reduce the ambiguity opportunities Direct Sellers their periodic account /
surrounding the industry. The guidelines information concerning, as applicable,
–– All aspects of the direct selling
also clearly define the Pyramid Scheme, sales, purchases, details of earnings,
operation
and thus establish a clear distinction commissions, bonus and other
between the Direct Selling Industry and –– Other related rights and relevant data, in accordance with
fraudulent Pyramid Schemes. opportunities agreement with the direct sellers. All
financial dues shall be paid and any
State Governments/UTs have been • The Direct Selling Entities are required
withholding made in a commercially
asked to set up a mechanism to monitor to notify and provide a full refund or
reasonable manner.
activities of Direct Sellers in line with the buy-back guarantee to every direct
guidelines. Every Direct Selling entity seller on reasonable commercial • The entity is also required to monitor
intending to carry out Direct Selling terms, which can be exercised within the value of purchases done by its
business subsequent to the publication a period of 30 days, from the date Direct Sellers/distributors and intimate
of the notification in the Gazette, shall of the distribution of the goods or them to pay VAT, in case the purchase
within 90 days comply with the following services to the direct seller. value crosses VAT threshold. This
set of conditions for the conduct of the monitoring should be done on a
• The Direct Selling Entities are also
Direct Selling business. monthly basis.
required to notify and provide to
Key highlights of Direct Selling every direct seller a cooling-off period, • The guidelines also prohibit the
Guidelines 2016 have been discussed which entitles such direct seller to Direct Selling entity from using
below: return any goods/services purchased any misleading, deceptive or
by the direct seller during the cooling- unfair practice, making factual
1. Setting up a business:
off period. representations which cannot be
• Any Direct Selling entity has to be verified, present any advantages of
registered as a legal entity under the 2. Conduct a Direct Selling Business: direct selling to any prospective direct
laws of India • The Direct Selling entities are required seller in a false or deceptive manner
• It is mandatory for the companies to to maintain proper records of their or engage in any activity of a similar
conduct orientation programmes for business dealings with complete manner.
38. Standing Committee on Finance (2015-16) report - Efficacy funds, etc.; Retrieved on 21st Oct 2016
of regulation of Collective Investment Schemes (CIS), Chit
© 2016
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• These entities cannot force the direct products, price, tax and quantity and the Consumer Protection Act
sellers to pay any money by way of other details regarding good sold by
• The entities should ensure that all
minimum monthly subscription or him/her.
complaints received over phone,
renewal charges.
4. Relationship between Direct email, website, post and walk-in
3. Obligation of Direct Sellers: Selling entity and Direct Seller: should have a complaint number for
• The direct sellers are required to carry • The relationship between a Direct tracing and tracking the complaint and
suitable identity cards and should not Selling entity and a Direct Seller shall record time taken for redressal
visit the customer’s premises without be governed by a written agreement • The Direct Selling entity shall provide
prior appointment or approval consisting of all the rights and information to the consumer upon
• At the initiation of a sales obligations. All rights and obligations purchase which shall contain:
representation, without request, shall be determined as per the
express terms of written agreement –– The name of the purchaser and
the Direct Seller should truthfully seller;
and clearly identify themselves, between a Direct Selling entity and
the identity of the Direct Selling Direct Seller. –– The delivery date of goods or
entity, the nature of the goods or • The guidelines hold the Direct Selling services;
services sold and the purpose of entity responsible for monitoring and –– Procedures for returning the
the solicitation to the prospective controlling the practices and methods goods; and
consumer adopted by the Direct Sellers. The
Direct Selling entity shall be held –– Warranty of the goods and
• The direct seller should offer a exchange/replacement of goods
prospective consumer accurate liable for any grievances arising out of
sale of any product or service. in case of defect, provided that no
and complete explanations and Direct Seller shall, in pursuance of
demonstrations of goods and 5. Conduct for Protection of a sale, make any claim that is not
services, prices, credit terms, terms Consumer: consistent with claims authorised
of payment, return policies, terms of by the Direct Selling entity.
• The Direct Selling entity and the
guarantee, after-sales service
Direct Seller are required to take
• A direct seller should also keep books appropriate steps to ensure security
of accounts stating the details of the of client data and shall by guided by
Impact on Direct Selling companies

The Direct Selling Guidelines 2016 have confidence and attract investors and is required to clearly define the scope
been welcomed by the Direct Selling foreign players to the Indian market. of the industry. One of the challenges
industry with open arms. According to On the demand side, it shall attract with respect to these guidelines has
industry experts, a clear definition of more distributors to be a part of the been the condition of maintaining
Direct Selling by the Government will Direct Selling industry, leading to wider complete details of the sellers. Since
help Government bodies, investigating reach and growth of the industry. It will the network is large, and spread across
agencies and consumers differentiate safeguard the interests of the distributors the country, documenting all records
between legitimate businesses and ponzi and reduce any hesitation among people is a cumbersome and time-consuming
schemes. Investigating agencies and when they join the industry. By giving process. However, since a time lag
regulatory bodies will be able to identify credibility to the business practice, the is expected by the industry for the
and weed out fraudulent players from risk of harassment of distributors will regulation to be ratified, the Direct
the market. These guidelines will ensure subside, thus inviting more women to be Selling companies get sufficient time
consumer protection and will help major part of the workforce. to be in 100 per cent compliance of the
players prevent the unauthorised sale of conditions set in the guidelines. The
However, ratification of these guidelines
their products on e-commerce platforms. guidelines set a clear indicator of what
into a statutory regulation is the
can be expected from the proposed
The guidelines are essentially an necessary next step. Since the sector
regulation.
accumulation of existing company hasn’t been given due recognition up
policies in the sector since they are until now, awareness of the Direct While the guidelines have been
already being practised by largely Selling business model needs to be harbingers of hope for the Direct Selling
all Direct Selling companies in India, created amongst consumers, media industry in terms of recognition and
thereby granting their existing operations and Government bodies. Subsequently, protection, there are certain challenges
credibility. This will further boost investor greater refinement of these guidelines that the industry continues to face.
35
Challenges in
the Direct Selling
industry and the
way forward
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Similar to the traditional consumer industries, the Direct Selling industry faces challenges in terms of
setting of manufacturing facilities, dealing with import duties, etc. However, one of the most daunting
concerns for the industry had been the lack of regulatory clarity. The Direct Selling Guidelines 2016 have
brought about a clear definition of Direct Selling and have helped in differentiating between legitimate
practices and illegal Ponzi schemes. To provide a conducive and sustainable operating environment for
the Direct Selling companies, further reforms are required including ratification of the Direct Selling
Guidelines 2016 and the setup of a specific nodal ministry / regulatory body for the sector.
states have to put in place a regulatory Even though regulations in Direct

Need to streamline FDI mechanism for the same. Ratification Selling in India can be further
policy of these guidelines into statutory

regulation is a necessary next step,
streamlined, the introduction of the
Direct Selling Guidelines 2016 is an
The operating structure of many Direct without which, enforceability of these unprecedented and huge contribution
Selling companies is similar to a guidelines will be difficult to maintain. towards strengthening the sector. The
wholesale cash and carry trade, where expected ratification of the guidelines,
the growth of consumerism in the
products are sold by manufacturers
(usually Direct Selling companies) Need for a nodal ministry country and the launch of various
schemes by the Government of India,
to distributors entailing sale to end The Ministry of Consumer Affairs has
customers. Indian regulators should issued the Direct Selling guidelines that are in sync with the operations and
classify Direct Selling as a ‘whole sale 2016 and will monitor the industry at objectives of Direct Selling companies,
cash and carry trade’ with 100 per cent the Central level, while various state together provide abundant opportunity
foreign investment under the automatic governments will be involved at the to the Direct Selling companies to
or government approval route. state level. A single nodal regulatory prosper.
body on the lines of TRAI and IRDA
Need for a governing could be formed for monitoring

the activities of the Direct Selling
legislation companies and paying close attention

to the grievances of this sector. This
At the Central level, Ministry of will ensure smooth performance of this
Consumer Affairs will monitor the sector in the long term.
Direct Selling industry, while the
37
Acknowledgements
This report could not have been written and Mr. Ankit Misra, Research Associate, Mr. Sushil Patra, Ms. Pratima Sinha and
without valuable contributions from the FICCI Direct Selling Taskforce, who have Mr. Kanwar Singh Alagh.
following people. Dr. A. Didar Singh, guided and facilitated the making of this
A special note of thanks to
Secretary General, FICCI, Mr. Rajat report.
Ms. Yogita Negi for her notable
Banerji, Chairman FICCI- Direct Selling
The KPMG in India team, who has contribution in designing this report and
Taskforce, Ms Leena Jaisani, Head-
contributed towards the content bringing it to its present form. Also
Retail, FMCG and Direct Selling, FICCI,
presented in this document, comprises Mr. Sameer Hattangadi from the
Mr. John Khiangte, core committee
Mr. Rajat Wahi, Mr. Suvasis Ghosh, compliance team.
member, FICCI Direct Selling Taskforce
38
Glossary
ASSOCHAM Associated Chambers of Commerce of India
AYUSH Ayurveda, Yoga, Naturopathy, Unani, Siddha and Homoeopathy
BPM Business Process Management

CAGR Compounded Annual Growth Rate
CII Confederation of Indian Industry
CIPAM Cell for IPR Promotion & Management
CPA Consumer Protection Act
CSR Corporate Social Responsibility

DFS Department of Financial Services
FDSA Federation of Direct Selling Association
FICCI Federation of Indian Chambers of Commerce and Industry
FMCG Fast Moving Consumer Goods

GDP Gross Domestic Product
IDSA Indian Direct Selling Association
IICA Indian Institute of Corporate Affairs
IMC Inter-Ministerial Committee
INR Indian National Rupee

IP Intellectual Property
IPR Intellectual Property Rights
IRDA Insurance Regulatory and Development Authority
IT Information Technology
KYC Know Your Customer

LMIS Labour Market Information System
MNC Multi National Corporation
MoFPI Ministry of Food Processing Industries
MSME Micro Small and Medium Enterprise

NABARD National Bank for Agriculture and Rural Development
NAM National AYUSH Mission
OBM Opportunity Business Meeting
PHDCC PHD Chamber of Commerce
PSL Primary Sector Lending

R&D Research and Development
SHG Self Help Group
SME Small and Medium Enterprise
TRAI Telecom Regulatory Authority of India

USA United States of America
UT Union Territory
VAT Value Added Tax
YoY Year on year
39
40
KPMG in India contacts: FICCI contact:
Nitin Atroley Leena Jaisani
Partner and Head Head
Sales and Markets Retail, FMCG and Direct Selling
T: +91 124 307 4887 T: +91 112 348 7505
E: nitinatroley@kpmg.com E: leena.jaisani@ficci.com
Rajat Wahi
Partner and Head
Consumer Markets
T: +91 124 307 5052
E: rajatwahi@kpmg.com
KPMG.com/in ficci.com
Follow us on:
kpmg.com/in/socialmedia
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provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in
the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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Direct

In addition to providing income opportunities, Direct Selling also

Dr. A. Didar Singh

There is thus, a need to ponder on the credible ways to

2. Discussions with industry players including Amway India http://www.dget.nic.in/upload/uploadfiles/files/ Tpqlr4H1ILsusuBRJlizHI/India-to-see-severe-shortage-of-jobs-in-

Direct Selling market in India6

Direct Selling in India is an oligopolistic Market Share of major players in 2015

5. As per the analysis and research of KPMG in India based on

8. KPMG FICCI report – Direct 2015; Retrieved on 13th

Skill India – an overview9

Contribution of Direct Selling to the Skill India initiative

Gender split of Direct Selling sales force12

Examples of Skill India implementation by Direct Selling entities14

Vestige can imagine, dream and hope of a bright future.

14. Discussions with industry players including Amway India

15. Policy document - National Policy for Skill Development

Make in India – an overview16

Contribution of Direct Selling on the Make in India scheme

The Direct Selling companies impart the

Manufacturing footprint of Direct Selling companies in India

27. News article; http://www.business-standard.com/article/

Woman Empowerment in India - An overview

“If the capacity of women is

28. News article; http://www.hindustantimes.com/static/indian- 3rd Nov 2016

Contribution of Direct Selling on empowering women

Digital India- An overview

Contribution of Direct Selling towards Digital India

34. News article; http://economictimes.indiatimes.com/

Startup India - An overview

Contribution of Direct Selling to Startup India initiative

Startup India at FDSA

Impact and opportunities from Startup India to Direct Selling35

33. Department of Industrial Policy and Promotion: Action Plan,

Overview of the Direct Selling Guidelines 2016

Impact on Direct Selling companies

states have to put in place a regulatory Even though regulations in Direct

policy of these guidelines into statutory

Need for a governing could be formed for monitoring

legislation companies and paying close attention

BPM Business Process Management

CSR Corporate Social Responsibility

FMCG Fast Moving Consumer Goods

INR Indian National Rupee

KYC Know Your Customer

MSME Micro Small and Medium Enterprise

PSL Primary Sector Lending

TRAI Telecom Regulatory Authority of India

This document is meant for e-circulation only. (039_THL1116 )

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