The Consumer Protection (Direct Selling) Rules, 2021, have come into force, with players asked to comply with them within 90 days. These rules brought about various changes for companies and consumers by bringing in registration processes, GST filings, restrictions on charging commission fees and other regulations.
With travel being restricted due to prolonged lockdowns during the pandemic, people in Tier 2 and Tier 3 cities started looking for trustworthy brands in their own vicinity, particularly given the increasing brand consciousness and awareness among people living in smaller towns and cities. Going forward, demand from Tier 2 and Tier 3 cities is expected to continue to shape the future of the direct selling industry.
The industry offers self-employment opportunities to a large number of people, especially women. Direct selling gives women the flexibility to manage their time and balance their work and personal lives.
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Direct selling is the marketing of consumer goods directly to consumers, generally in their homes or the homes of others, at their workplace, and other places away from permanent retail locations. Direct selling occurs in two primary ways: On a one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or on a party-plan basis (selling through explanation and demonstration of products to a group of prospective customers by a direct seller usually in the home of a host(ess) who invites other persons for this purpose). Avon stands as a prime example of a direct seller using one-to-one selling, whereas Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, and financial services - are excluded.See All of Our Definitions
This report originates from Passport, our Direct Selling research and analysis database.
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