India’s Rise in Direct Selling Markets
In a noteworthy achievement, India’s direct selling sector surged to the 11th position among the leading markets for direct sellers worldwide, registering retail sales amounting to $3.23 billion (around ₹26,852 crore) in 2022. This upward trajectory was detailed in the World Federation of Direct Selling Association (WFDSA) report, sourced from the news agency PTI. The report underscored India’s remarkable 5.4% rise in retail sales compared to the preceding year.
A Remarkable Growth Trajectory
India’s direct selling industry has maintained an impressive growth trajectory over the last three years, boasting the highest Compounded Annual Growth Rate (CAGR) of over 13.3% on a constant dollar basis. In contrast, the global direct sales market faced a slight setback, experiencing a 1.5% decline in retail sales to $172.89 billion during 2022.
Global Direct Selling Landscape
The United States retained its supremacy as a top retail seller with direct sales amounting to $40.52 billion, even though this represented a 5% decline from 2021. Other prominent markets in the top echelons included Korea, Germany, China, Japan, and Malaysia.
India’s Aspirations for the Top 5
This surge in India’s retail sales has invigorated the industry, prompting optimism and enthusiasm. Rajat Banerji, the chairman of the Indian Direct Selling Association (IDSA), expressed confidence that India is on track to position itself among the top 5 global markets for direct selling within the coming decade. Banerji highlighted the crucial role played by the Consumer Protection (Direct Selling) Rules 2021 in enhancing stability and investor confidence within India’s direct selling sector.
IDSA’s Role in Facilitating Growth
IDSA, functioning as an autonomous and self-regulatory entity for India’s direct selling industry, acts as an intermediary between the industry and government policy-making bodies. The association is committed to fostering the growth of the sector in India and attracting global direct sellers to invest in the country. Banerji noted that among the current top ten direct sellers, only three are based in India. The aim is to encourage all top players to establish and expand their businesses within the Indian market, further solidifying India’s ascent in the global direct selling arena.