Direct selling is anticipated to maintain solid but slowing current value growth in India throughout the forecast period, with growth across most categories. A modification was made to the consumer protection (direct selling) rules of 2021 by the Ministry of Consumer Affairs in June 2023.
Although direct selling is projected to maintain its growth trend in the forecast period, modern retail channels such as hypermarkets, supermarkets, and e-commerce are expected to pose a challenge to growth due to their scale, visibility, reach, and discount offers. Particularly strong competition is likely for beauty and personal care direct selling, due to the increasing number of beauty products sold via e-commerce.
With direct selling companies having onboarded technology to promote sales and help with the training and development of individuals in their selling models during the pandemic, they have the capability to improve their reach and awareness even in the more remote regions of India. The growth of direct selling companies depends only on how many people the sellers can reach.
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Direct Selling
Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace, and other places away from permanent retail locations. Direct selling occurs in two primary ways: On a one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or on a party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose). Avon stands as a prime example of a direct seller using one-to-one selling, whereas Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, and financial services - are excluded.
See All of Our DefinitionsThis report originates from Passport, our Direct Selling research and analysis database.
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