Bullish direct selling industry
The direct selling industry in India is currently reckoned at INR 75 billion, one of the fastest growing non-store retail formats, recording double digit growth of more than 16 per cent over the past four years.
It has attracted a large number of Indian and foreign direct selling companies, according to a market report released in New Delhi June 28, 2016.
The FICCI-KPMG India report, titled, ‘Direct Selling: Delhi – A Global Industry, Empowering Millions’, estimates that this industry in has the potential to reach a size of INR 15-20 billion by 2025, driven by the swelling share of middle income households, growth in consumer markets and an increase in the penetration of direct selling to globally comparable levels.
The report also suggests that realising this potential is contingent on creating an enabling environment for the industry and mitigating some of the challenges it faces today.
At a CAGR of 43 per cent, has been one of the fastest growing direct selling states in India between FY10 and FY14.
While the direct selling industry in has witnessed reasonable growth in the past few years, the industry faces certain regulatory challenges which impacted the industry in FY13 & FY 14.
However, being one of the fastest growing states in India, it also boasts of reasonable per capita incomes in India.
This has in turn led to higher expenditure on consumer goods.
The increasing working population in state like also make a good direct selling market.
The industry picked up in FY14 2014, the direct selling market in Delhi was estimated in the range of INR4.0-4.5 billion, said the report. fii-news.com.
