Benefits of Direct Selling Firms in India

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Benefits of Direct Selling Firms in India

Before we talk about the benefits, you must understand what direct selling means! In the simplest terms, direct selling is all about selling goods and services directly to customers and eliminating the needs of a ‘brick and mortar’ or physical store. According to the reports given by FICCI and KPMG, this industry stands at around Rs. 80 Billion in India and it is growing at an impressive rate of 13-15% every year. The business model followed by the direct selling firms is quite interesting as it gives individuals an edge by providing them with lucrative employment opportunities and eradicating wholesale retailers and middlemen. It is projected that this industry is currently employing over 1 lakh people in India.

History of Direct Selling Businesses in India

The idea of direct selling was introduced in the late 1990s in India when Direct Selling giants like Oriflame and Amway started their operations in the country in 1998. The exquisiteness of these direct selling firms is that they are established as per the guidelines and have followed the best practices from the day of their commencement. Hence, they are still running their business successfully and now recognized as leaders in this industry, creating millions and billions of successful direct sellers or distributors across India. Apart from these international brands, our country owns companies such as Tupperware and Vestige, which started in the 2000s. The uniqueness of these companies is that they are employing more and more women so that they can create a large pool of highly skilled and talented sales professionals.

Top Benefits of Direct Selling Businesses 

One of the main advantages of this evolving industry is that it can drive to create a huge pool of skilled and knowledgeable professionals as it trains more than 5 million people every year in the fields of marketing and sales. Besides these two major components, direct selling businesses can help you improve your communication skills and leadership capabilities. This industry is also helpful in personality development. In addition to positively impacting individuals, direct selling firms are also contributing to the Indian economy like:

Contributing to the ‘Skill India’ Initiative

The direct selling industry is considered quite labor-intensive. The products designed and manufactured by the direct selling companies are directly retailed by independent business owners. It means this industry can turn unskilled laborers into skilled professionals.

Boosting Digital India

After the massive popularity of the e-commerce industry in the country, there is a cut-throat competition in the field of direct selling. To make this competitive market an easy place to do business, several direct selling companies are now taking measures to enhance the visibility of their company. Since we are in the digital epoch, using this sphere is not that difficult. You can use social media platforms and other digital marketing tactics to let your brand and its offering go viral.

Fuel to ‘Start-Up’ India Concept

This scheme was mainly introduced to promote ‘start-up culture’ in India by imparting knowledge of management and technology to its associates and other MSMEs. It is believed that direct selling has been creating skilled and successful companies and entrepreneurs. And one more time, direct selling has a chance to help the Indian government in its ‘Atma Nirbhar Bharat’ initiative amid the Corona crisis and conflicts with China. Direct selling companies can grab this opportunity and contribute significantly to the economy of the country.

Good for Women Empowerment

According to KPMG and FICCI, a huge part of the direct selling workforce consists of women. Direct selling firms like Tupperware, Amway, and Vestige are hiring and training more and more women, giving a boost to women empowerment in terms of financial independence.

Creating Amazing Opportunities for ‘Make in India’ 

We all know that direct selling businesses count more on regional manufacturers and MSME. So, it is an outstanding option to create a pool of resources for our economy. These companies are now supplying the latest and advanced technologies in India, resulting in enhanced production of the goods.

Closing Remarks

As per the reports published in Economics Times, this industry has the potential to grow around 9 times to touch the recorded Rs. 64,500 Crore by 2025. Additionally, it is projected that almost 1.45 million jobs will be provided by this industry in India. So, if you are planning to join a direct selling company or want to start as a direct seller, it is the right time to begin your journey.
 

 

Author: 
Nitin Arora

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