THE INDIAN DIRECT SELLING INDUSTRY IS REGISTERING A HEALTHY GROWTH RATE IN EXCESS OF 24 PER CENT.

IN ANOTHER YEAR, THE MARKET SIZE OF THIS INDUSTRY IS EXPECTED TO TOUCH CLOSE TO $1.5 BILLION, WITH CONTRIBUTIONS FROM COMPANIES LIKE AMWAY AND TUPPERWARE.

INDIAN DIRECT SELLING INDUSTRY POISED FOR HANDSOME GROWTH

wages and salaries to the employees of the direct selling companies and commissions/bonuses to the direct sellers.It also contributes to the tax revenue of the country.The survey found that in 2008-09 the direct selling sector contributed Rs.3000 million through direct indirect taxes. Indirectly, it leads to the growth of ancillary industries, investment in the supply chain, development of sourcing network, growth of the packaging industry etc. The ICRIER report projects that the Indian direct selling industry would to touch Rs 7120 crore by 2012-13.By the end of 200910, the size of the industry was Rs 4120 crore, growing at a rate of 24 per cent over the previous fiscal.The industry is poised to grow at the rate of 20 per cent per annum till 2012-13, according to a study by Ernst & Young. Direct Selling contributes significantly to employment self employment.According to the ICRIER report, the number of direct sellers in India in 2009-10 stood at 2.01 million.Industry leaders are of the opinion that by 2020, 15 million people will be involved in direct selling.Indias direct selling sector, just 15 years old is already the 11th largest in the world in

ndia is one of the fastest growing economies in the world and is expected to be the 11th largest economy and the 4th largest in terms of purchasing power parity by 2015 with a projected GDP of $ 2.18 trillion. With the changes in the economy, India is witnessing a rise in per capita income; increase in urbanization and more importantly change in purchasing power of the Indian consumer the rise of the Indian middle class with greater earning power and higher disposable incomes; shift in consumption pattern from necessities to discretionary consumption, just to name a few. With the change in consumer dynamics, marketers also need to devise innovative marketing & distribution strategies to reach out to the consumers.Direct selling is one of the fastest growing channels of distribution that is surely gaining popularity with a capacity togive millions with limited means, a legitimate tool to earn a decent living and develop marketing and management skills. This Rs 5,000 crore industry in India in 201011, with many traditional retail format players eyeing to enter this segment, surely has something in it which is fuelling the growth. As per a recent ICRIER Report, the direct selling industry has a positive socioeconomic impact both direct and indirect. Directly, the direct selling industry provides

terms of the number of direct sellers.It is significant for a country like India where, women make up almost 70% of the total direct selling work force.The number of people availing this opportunity has increased by over 50% in the last two years and the countrys rising population will further fuel the growth of this labour intensive industry while also fulfilling the governments promise of employment generation and women empowerment.The industry, being a large employer of women it leads to women empowerment, providing equal opportunity to all and leads to an increase in family income. An important development for the Direct Selling industry in 2011 had been the Kerala government coming out with a set of guidelines for the Direct Selling industry for the first time in the country.Earlier, there was no regulatory framework that defined the direct selling industry in the country.The guidelines laid down by the Kerala government have come as a benchmark for the country and may prove as a stimulus for

the Central Government to outline guidelines for the direct selling industry in the country.The guidelines have also come as a relief to the genuine operators like Amway, Avon, Tupperware, Oriflame & many others in the industry as the norms are meant to protect the consumers from fake schemes and at the same time, protect interests of genuine companies who are often confused as fraud operators. According to the guidelines, the State Government mandated all legally authorized direct companies to conduct business under certain conditions which will end the biggest threat of 'fly by night' operators who make a fast buck by impersonating the business model of leading brands. Looking at the growth of the Indian direct selling market, India is fast emerging as a key destination for international direct selling companies.While new firms are mulling their India entry, the companies already operating in the country are expanding their operations by ramping up manufacturing, introducing new products or increasing their advertising and marketing spends. For instance, Amway, the largest direct selling company in the country, has been able to deliver exceptional quality products to urban and semi urban homes in the areas of nutrition and wellness, cosmetics, personal care, home care and home tech.As of now, almost 97% of the products sold by Amway India are manufactured within the country through 7 third-party contract manufacturers.Amway India is committed to

Mr. William S. Pinckney,

MD & CEO of Amway India Enterprises Pvt. Ltd
the Indian market and is also planning to setup its own manufacturing facility with an investment of Rs 300 cr by 2014.Amway ranks amongst top 10 FMCG companies in India.The company has invested more than Rs 200 cr in India, and has 135 offices and 55 city warehouses across the country, covering over 4000 cities and towns through its home delivery network.In 2011, Amway India clocked a turnover of Rs.2130 cr with a growth of 19% over Rs.1790 cr in 2010. Amway India currently offers 131 products in five categories of Personal Care, Home Care, Nutrition & Wellness, Cosmetics and great value products.Its Health & Wellness category contributes 55% to the firms turnover with Nutrilite being the best-selling product in category.Amway Indias Health & Nutrition category grew by 22% from Rs 903 cr in 2010 to Rs 1106 cr in 2011.This year, Amway India has introduced Healthy Ageing products Nutrilite MilkThistle with dandelion root and Nutrilite Glucose Health. The healthy ageing category will empower adults including baby boomers to proactively take control of their health as they age. At present, India is the seventh largest market for Amway Corporation, USA. Amway India is targeting a turnover of Rs 2500 cr in 2012 which will promote India to become the sixth largest market for $9.3 billion Amway Corporation.