Direct selling is a unique distribution method where products and services are sold directly to consumers outside of traditional retail environments. Direct selling companies can provide several benefits to both the distributor and the consumer, including lower overhead costs, personalized customer service, and the opportunity for individuals to start their businesses with low start-up costs. Direct-selling companies may offer a wide range of products, including cosmetics, personal care items, home goods, nutritional supplements, and many more. This method of selling often involves building personal relationships with customers and providing personalized customer service.
Bright future of direct selling companies
The future of direct selling is a cash cow that has yet to be acknowledged. Despite the pandemic, the direct selling industry has shown resilience and adapted to new ways of doing business, such as virtual selling and remote work, which have helped boost growth. Despite the challenges faced by every industry, direct-selling companies in India have continued to grow rapidly. According to the Indian Direct Selling Association (IDSA), the industry has shown consistent growth over the past few years, with a compound annual growth rate (CAGR) of approximately 13% between 2015 and 2019. Let us discuss some of the potential factors that would brace direct selling in the future.
More than 50% of India’s population constitutes of youth
India has a huge and growing population. More than 50% of the total population is below the age of 25. As India continues to develop and urbanize, the demand for consumer goods and services is likely to increase, which could create more opportunities for direct-selling companies. Additionally, the government's initiatives to promote entrepreneurship and self-employment could also benefit the direct selling industry, as they offer individuals the chance to start their businesses with low entry barriers.
The rising inflation rate would lead people to direct selling
The rising inflation rate in India could potentially drive more people towards direct selling as a way to earn additional income. With conventional earning avenues becoming less reliable, direct selling offers individuals an opportunity to start their businesses with low entry barriers and flexible schedules.
Recent establishment of government bodies will support direct selling in future
The Indian government's efforts to regulate and promote the direct selling industry could have a positive impact on its future. The new laws and regulations aim to protect consumers from fraudulent pyramid schemes and other unethical practices, while also providing a framework for legitimate direct-selling companies to operate within. The establishment of bodies like the IDSA, FIDSI, FICCI, and ASSOCHAM, which regulate the industry, can also help to improve the industry's reputation and build trust with consumers.
Digitization would fuel the growth of direct selling in the coming future.
The increasing digitization and use of social media in India could have a significant impact on the direct selling industry. As the industry adapts to these changes and continues to build trust with consumers, it has the potential to grow and thrive in the coming years. Overall, the growing use of digital technology and social media in India could create opportunities for the direct selling industry.
