Direct selling to reach Rs53,200 mn by 2012-13: survey

Direct selling to reach Rs53,200 mn by 2012-13: survey

Bangalore: The total size of the direct selling market in India which stood at Rs33,300 million in 2008-09, excluding insurance, was set to reach Rs53,200 million by 2012-13, according to a survey.

The total size of the direct selling industry grew by 17% from Rs28,510 million in 2007-08 to touch Rs33,300 million in 2008-09, according to survey by Indian Direct Selling Association (IDSA) and Ernst and Young.

This growth was mainly attributed to increase in distribution reach and penetration and growing coverage of products being sold under direct selling activity, it said.

Health, comprising products related to nutrition, wellness and supplements has emerged as a leading category within the product landscape of the organized direct selling industry. The traditional product categories of personal care and cosmetics occupy a combined share of 18% of market.

In terms of regions, South India remains a key hub of activity for direct selling followed by north India. The presence of a strong base of sales consultants, combined with high awareness levels of direct selling concept have contributed to growth in south India. Delhi and Maharashtra have now started showing a high affinity to direct selling.

Some 1.82 million individauls have been involved in organized direct selling activity as sales consultants in 2008-09, with women comprising 68% of the network.

Though India recorded a 17% growth, when compared to top 25 countries, it ranked 23rd in terms of revenue generated and 11th in terms of sales consultants involved.