The direct-selling business – which began as a small movement in India when Eureka Forbes initiated direct sellers (white-collared doorknockers) to push the sales of its vacuum cleaners in the early 1980s – has become an entrepreneurial revolution poised to cross the `10,000-crore-mark (over $2 billion) by 2014-15. The growth prospects of this globally acknowledged multi-billion-dollar business that has paved the way for hundreds of thousands of Indians to create self-employment opportunities.
While the history of direct selling in India dates back to
the 1980s, the industry officially came into being in 1995 following the
opening of the economic windows. The concept evolved along with economic
development and growing consumerism. “Most of what had happened in direct
selling has been happening in the nature of diversion from the existing sales
channels. Economic liberalisation opened the doors for direct selling to
flourish in India,” according to Debroy.
At present, direct selling is one of the fastest growing
channels of distribution, which ‘give millions with limited means a legitimate
tool to earn a decent living and develop marketing and management skills.’ The
industry has also made significant contribution towards the country’s
socio-economic development, including economic growth, education, health, women
empowerment, etc.
Future
According to estimates, some 91.5 million
entrepreneurial-minded direct sellers managed to achieve $153.7 billion in
sales in 2011. While the US-led global retail direct sales stood at $29.8
billion, Japan ranked the second at $23.8 billion. The Indian direct-selling
business was estimated at Rs 6,300 crore ($1,149 million), and accounted for 35.8%
of non-store retail sales, 4.41% of organised retail sales, and 0.07% of GDP in
2010-11. The number of direct sellers is estimated to have crossed 4 million
during the period.
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