Guidelines for direct selling in final stages

KOCHI: The direct selling industry in the country has the potential to reach a size of Rs 64,500 crore by 2025 from Rs 7,500 crore now, according to a FICCI-KPMG report.

The report, titled, ‘Direct Selling: – A Global Industry, Empowering Millions’, attributes the growing share of middle income households, growth in consumer markets and an increase in the penetration of direct selling to globally comparable levels as reasons for the growth of the industry.The industry in 2013-14 provided self-employment to nearly 145,000-175,000 female direct sellers. It will provide self-employment opportunities to 400,000-500,000 people in nine years.

“We acknowledge the contribution of this industry and we have worked hard on preparing the guidelines for the industry. It is in the final stages of approvals and will be released very soon,” said Chandralekha Malviya, Principal Advisor, Ministry for Consumer Affairs, Food and Public Distribution.

At a CAGR of 43 per cent, Delhi has been one of the fastest growing direct selling states in India between FY10 and FY14. While the direct selling industry has witnessed reasonable growth in the past few years, the industry faces certain regulatory challenges which impacted the industry in FY13 & FY 14, it noted.

Highlighting the growth contributors, the report suggests that the industry has the potential for greater penetration. Other growth factors include robust GDP growth driving household incomes that is likely to triple by 2025, rapid urbanisation, and overall industry growth in key categories such as health and wellness, cosmetics, household goods, many of which are expected to grow at 10-16 per cent.

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