When businesses all around the globe were struggling to stay afloat during the pandemic, direct selling became one of the fastest-growing sectors and enabled thousands of people to earn a stable income. This alternative career opportunity became the lifeline of many families and helped them during challenging times. Now that the pandemic has slowed down and businesses are working at full capacity once again, we must ask ourselves, “What Is The Future Of Direct Selling In India?”
According to various reports, the direct selling industry is showing no signs of slowing down. In fact, Vestige, a leading direct selling company, is still experiencing rapid growth both in terms of revenue generation and workforce.
Charting Industry Growth
Direct selling companies are known for their inherent ability to be adaptable and flexible. According to a report published by FICCI and KPMG, the direct selling sector is expected to grow at a compound annual growth (CAGR) of 6.1% from 2022 to 2028. The industry’s total market cap will be a staggering Rs 64,500 crore by 2025. According to Amitabh Kant, secretary, DIPP, ministry of commerce and industry, the direct selling sector is showing the potential to even grow beyond the projected level.
Wellness, nutrition and other FMCG products are the major driving forces behind the growth of the direct selling sector. Indian consumers are now more aware of the benefits of nutritional supplements, immunity boosters and hygiene products. Therefore, these categories are seeing sales that have never been seen before in India.
The unique business model of direct selling companies enables them to sell their products directly to the consumer, which results in lower costs for both the company and the end consumer. Today, the direct selling industry has become a preferred channel for distributing various goods and services as it is highly economical and efficient.
India is known as a young nation, and by the year 2030, India will have the largest working-age population. However, the rate of job creation and current employment opportunities are still not ready to provide a source of income for this growing young population.
According to the Centre for Monitoring Indian Economy ( CMIE), approximately 37 per cent of people in the 20-24 age group are having a hard time finding a full-time job opportunity. It’s a matter of grave concern, as the unavailability of jobs can create economic instability and social unrest throughout the country.
The direct selling sector is leveraging the young workforce and creating sustainable income opportunities, building the nation’s self-reliance. The growing workforce of direct selling companies will further boost revenue generation and expansion into new territories.
Why Is Direct Selling Gaining Popularity In India?
More and more young people are now moving towards working for a direct selling company over traditional jobs. This trend can be seen across the country. Let us try to understand what’s driving this change.
A direct selling company allows both employed and unemployed people to join as sales representatives or distributors. One can also decide their working hours, monthly targets, long-term goals and marketing strategy to generate sales. This flexibility enables people from all walks of life to start their entrepreneurial journey with a direct selling company and earn a good income.
Direct selling companies such as Vestige offer two types of income. A direct commission on the sales that a distributor makes and a commission on the sales of their downlines. The opportunity to earn double commissions encourages people to make extra efforts and earn a comfortable living.
The unique business model of direct selling companies is highly effective in reducing distribution costs, which allows them to reduce product prices. And as we all know, the Indian audience focuses a lot on pricing before making any purchase. Hence, it is comparatively easier for sales representatives to make sales. In recent years, the general public has become more aware of direct selling companies and their products and is more willing to make a purchase.
Indian Direct Selling Association (IDSA) reported that approximately 47 per cent of sales representatives in direct selling companies are women. The direct selling sector has enabled a weaker section of our society to become financially independent and earn a living.
The flexibility in working hours has enabled women who are living in rural areas and juggling multiple responsibilities to earn an income while managing their day-to-day activities.
Direct selling industry will keep on growing at a rapid pace in the coming years providing alternative sources of income to thousands of people. It is the perfect time to start your entrepreneurial journey with a direct selling company like Vestige.