Direct Selling industry grows by 12% reaching Rs. 21,000 Crore. Its majority of sales are from the wellness and neutraceutical sector, with the second most grown sector being personal care. We will share details about the Direct Selling Industry’s annual growth below. The sector is coming out as the best sector for all the direct sellers. Many new sellers come out in the industry this year. Let us look at updates from the Direct Selling Industry below.
India’s direct selling industry had a growth of 12%. It made a turnover of more than Rs. 21,000 Crore in the 2022-23 financial year. The industry made the most growth in Wellness and Nutraceutical products. Following are the details of The Direct Selling Industry Sector growth:
- Wellness And Nutraceutical: 73.5%
- Cosmetics and Personal Care: 11.3%
These two sectors are the most growing sectors in direct selling. Apart from that, there are 2 lakh new direct sellers added after 2022-23. It is now 86 Lakhs. Before that, around 84 Lakhs of direct sellers worked in different companies in the country. Sales also increased by Rs. 2,252 Crores. The north region had the majority of the turnover constituting 30%. Other regions also performed well and contributed some amount successfully to the industry’s growth.
Direct Selling refers to the selling of goods and services without the involvement of a third party. The direct seller acts as the only intermediary between the consumer and the manufacturer. Thus, the margin distributed among different retailers, wholesalers, and distributors goes to a single person, increasing his margin. The best thing is that the Direct Selling industry is going to increase further in the coming years. However, the matter of concern is that there is still no proper legal existence of the industry.
Direct Selling is still not seen as an industry with legal acceptance in India. There are some regulations. However, the matter about its legality is still going on. Many companies promote their Ponzi schemes under the name of direct selling. The true model involves a valid and useful product. However, many use it to sell a money-circulating scheme without any valid product. If the industry maintains its growth, there will be some better frameworks coming soon. Thus, all the direct sellers will get the benefit of working openly in the market. There are several big and genuine Indian and International companies in India. They are still helping to maintain the trust of people in the industry leading to its growth.