Mumbai (Maharashtra) [India], March 20 : The direct selling industry in India has registered growth of more than 12 per cent, on a yearly basis, with the gross industry turnover at Rs 21,282 crore in 2022-23, according to an annual survey report released by the Indian Direct Selling Association (IDSA) on Wednesday.
By definition, direct sales are sales that occur between a brand and the end-user without a middleman or distributor.
The survey, compiled by market research company KANTAR, reflected the overall improved performance of the industry in all the segments it deals with vis-a-vis the year 2021-22 which was partially marred by the pandemic.
The Northern region continued to take the lead with 30 per cent of turnover, followed by the East with 25 per cent, West 22 per cent, South 15 per cent, and North East 9 per cent.
Among states, Maharashtra led with 12 per cent turnover, followed by West Bengal and Uttar Pradesh with 10 per cent each, the survey highlighted.
Wellness and nutraceutical products remained the preferred segment, accounting for 73.5 per cent and cosmetics and personal care 11.3 per cent of the gross turnover. The industry has recorded an 8.3 per cent CAGR over four years, with the number of active direct sellers reaching around 86 lakhs, from 84 lakh in 2021-22, the survey revealed.
Vivek Katoch, Chairperson, IDSA, while speaking tosaid, "The report showcases an encouraging trend for the direct selling industry in the country. The growth trajectory of the industry has been on a surge over the years. A CAGR of 8.3 per cent is a testament to the fact that direct selling business in the country has made steady growth and is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government for the industry."
"We are confident that with the growth exhibited by the latest survey, India will break into the top-5 direct selling markets in the globe much sooner than the earlier estimates," said Katoch.
"Around 86 lakh direct sellers are actively self-employed in the direct selling industry in India. There has been a staggering growth in this area and the business as well that shows the growing trust and confidence in the direct selling business," said Harish Pant, Vice Chairman, IDSA.
The Indian Direct Selling Association IDSA is an autonomous, self-regulatory body for the direct selling industry in India. The association acts as an interface between the industry and policy-making bodies of the government, facilitating the cause of the direct selling industry in India.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor