Direct selling is a lesser-known profession in India. People often misconstrue it with some form of “door-to-door” selling or an investment scheme. They tend to have preconceived notions about direct selling and equate it to a frivolous endeavour. Let us take a look at the brief history of direct selling in India.
Direct selling is not a door-to-door selling convention or an investment scheme or a gimmick. It is a profession which involves selling products and services directly to customers without the presence of a middleman or a retailer. Individuals who sell these products and services are called direct sellers. These products are not sold in shops and malls. Sure, this is one of the aspects that distinguishes direct selling from most conventional businesses, but it doesn’t make it any less legit than other regular professions.
For instance, an individual does not need a degree or a certification to become a direct seller. It doesn’t involve committing a fixed number of hours every day. Individuals have absolute freedom on how many hours and days they would like to invest in their direct selling business.
These aspects often draw scepticism as they seem different from conventional businesses. But one of the most important things that are perhaps at the root of people’s scepticism is the fact that direct selling is relatively new. Hence, there is more scope for people to understand and gain perspective from this unique opportunity.
For all the individuals who are new to direct selling, here is a brief history of direct selling in India. We will also look at one of the best direct selling companies to help us kick-start our career in direct selling.
History of direct selling
Direct selling was first introduced in India in the 1980s. The initial days of direct selling were challenging as most of the Indian population still believed in a conventional path. However, there was a rise in direct sellers in the subsequent decade with more awareness.
Indian Direct Selling Association (IDSA) was introduced during this time. IDSA is an autonomous body that acts as an interface between companies and the government’s policy making bodies. It is important to note that IDSA is not the governing body. However, there have been constant efforts to establish a governing body in the industry.
Unfortunately, there is still a need for a governing body for direct selling.
The direct selling industry has experienced huge growth during this time. QNET was introduced in 1998 around the world, as it marked its arrival as a major player amongst other direct selling companies. The company and the industry grew. The industry was growing at a rate of 16% CAGR with millions of people signing up for opportunities.
In 2016, the government established the Direct Selling Guidelines to protect the interests of direct selling customers. In addition, it established mandates for the companies to follow. The guidelines were monumental in preventing fraudulent business practices while making an attempt to strengthen the regulatory mechanism of the industry.
Furthermore, the government passed the Direct Selling Rules of 2021 which went in hand with the Consumer Protection Act. The idea was to ensure that legitimate direct selling companies can continue functioning without the hindrance of sceptics and illegitimate entities.
The direct selling industry has grown by leaps and bounds. Here is how the Indian direct selling market fares in recent times!
Current position of Direct Selling
Since then, the industry has witnessed exponential growth. It recorded 3.19 Billion Dollars worth of sales in 2020 with a Year-on-Year (YoY) growth of 28.3%. It also recorded the highest Compound Annual Growth Rate (CAGR) of 17.6% over the last three years. Over 7.4 Million direct sellers were recorded in the previous year.
Indian direct selling also entered the top 20 global markets in the direct selling industry. The leading segment for direct selling sales is Wellness with over 57% product share. Personal care and beauty come in second with 22%.
Current trends and the future of direct selling in India
The pandemic caused companies to incur major losses. In some cases, they even had to shut shop. However, direct selling is bucking the trend as it continues to grow. More and more people are understanding the value of unconventional opportunities like direct selling that allows individuals to set their own working hours.
Moreover, consumer behaviour has seen a major shift with the rising affluence of buyers using online portals for their convenience. The Indian buyer makes shopping decisions based on an aspirational lifestyle. The buyers are looking for luxury brands and high-quality products.
The projections are also positive in the industry. The prediction is that the industry would reach a value of ₹15,930 Crore by the end of 2021, up from ₹12,620 Crore in 2016. In addition, it is expected to become ₹ 64,500 Crore by 2025. What’s more, the industry is predicted to employ 18 million people by 2025 with a CAGR of 4.8%. (Source: Economic Times Report)
Speaking of opportunities, direct selling has been creating employment for various domains. India is a country with great potential and talent. However, the key area where we lack is providing facilities and professional training. However, India is one of the biggest countries in terms of online presence and growth. And, direct selling has been playing an important role in creating avenues for millennial and middle-class sectors.
QNET direct selling opportunity
QNET is one of Asia’s leading direct selling companies established in 1998. It provides millions of people the opportunity to become direct sellers and empowers them to take charge of their lives. QNET has a world-class product portfolio with the finest products in various categories. It caters to the Indian audience with products from health and wellness, home and living, watches and jewellery and personal care and beauty.
QNET has a sophisticated e-commerce platform that is well complemented by a vast resource of knowledge and marketing materials. It also provides mentorship opportunities with a vast community of direct sellers who have walked the same path and become successful!
If you’d learn to gain more perspective on the direct selling industry and QNET’s entrepreneurial opportunity, visit QBuzz India!
