During the pandemic, when people were spending more time at home, direct selling emerged as a flexible source of income for sellers, which empowered individuals with the capability to sell products within their communities from the comfort of their home. The tendency of customers to avoid visiting physical retail stores also contributed to the growing demand for products via direct selling in 2021.
As direct sellers grew in India, so did demand for goods such as wellness products and nutraceuticals, personal care items and home care products. With the shift of consumers’ focus to health and wellbeing, they became increasingly mindful of what they were consuming.
In order to maintain the quality of their products, direct selling companies work closely with micro, small and medium enterprises (MSMEs) in India. In turn, more MSMEs have also developed the capability to cater to the demand for quality and quantity required by these direct selling companies.
In December 2021, the Indian government banned direct selling companies from promoting their pyramid and money circulation schemes under the Consumer Protection (Direct Selling) Rules, 2021. Under this rule, the state government is required to form a framework of regulations to monitor direct selling activities.
Now that direct selling companies have onboarded technology to promote sales and help with the training of individuals in their selling model, they have the capability to improve their reach and awareness even in the more remote regions of India. The growth of direct selling companies only depends on how many people the sellers can reach.
The manufacturing capabilities of Indian direct selling companies are benefiting in terms of financial aid and manpower under the ‘Make in India’ initiative from the government of India. With the government’s growing interest in promoting the export capabilities of Indian manufacturing companies, direct sellers are also expected to grow across the width and depth of their product portfolios.
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Direct Selling
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: -one-to-one basis (usually by prior arrangement a demonstration is given by a direct seller to a customer) or -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). The prime example of a one-to-one method is Avon. Tupperware is famous for its party-plan method. Direct selling of services - such as insurance, telecoms, other utilities, financial services - are excluded.
See All of Our DefinitionsThis report originates from Passport, our Direct Selling research and analysis database.
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