Direct Selling Industry in India Registers Over 12% Growth in 2022-23

Direct Selling Industry in India Registers Over 12% Growth in 2022-23

VoM News Desk | March 20, 2024 | 03:22 PM IST | Breaking News | Follow on Google News

Direct Selling Industry in India Registers Over 12% Growth in 2022-23

Direct Selling Industry in India Registers Over 12% Growth in 2022-23

According to the annual survey report released by the Indian Direct Selling Association (IDSA) on Wednesday, the direct selling industry in India has witnessed significant growth, recording a yearly increase of more than 12%. The gross industry turnover stood at Rs 21,282 crore during the fiscal year 2022-23.

Overview of Direct Sales

Direct sales refer to transactions conducted directly between a brand and the end-user, eliminating the need for intermediaries or distributors. This model has gained traction in India, contributing to the industry’s growth and success.

Performance Highlights

The survey, conducted by market research firm KANTAR, highlighted the industry’s improved performance across all segments compared to the previous year, which was affected by the pandemic. The Northern region led the turnover with 30%, followed by the East (25%), West (22%), South (15%), and North East (9%).

Segment-wise Breakdown

Wellness and nutraceutical products emerged as the preferred segment, constituting 73.5% of the gross turnover, followed by cosmetics and personal care products at 11.3%. Maharashtra led among states with a turnover of 12%, followed by West Bengal and Uttar Pradesh at 10% each.

Growth Trajectory

The direct selling industry has maintained a steady growth trajectory, recording an 8.3% compound annual growth rate (CAGR) over the past four years. The number of active direct sellers has increased to around 86 lakhs in 2022-23, showcasing the growing popularity and trust in the direct selling business model.

Industry Outlook

Vivek Katoch, Chairperson of IDSA, expressed optimism about the industry’s future growth prospects, attributing it to a favorable regulatory framework by the government. He projected India’s ascent to the top five direct selling markets globally in the near future.

IDSA’s Role

The Indian Direct Selling Association (IDSA) serves as an autonomous, self-regulatory body for the direct selling industry in India. It acts as a liaison between the industry and government policymaking bodies, advocating for the industry’s interests and development.

VoM News Desk

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