What is a direct selling company and its future in India?
18 May, 2021
What is a direct selling company?
A direct selling company sells products and services directly to consumers. It helps in removing distribution intermediaries such as the area distribution center and wholesaler. A direct selling company builds a network of independent sales representatives to sell the products that are commonly not available at traditional stores. In the era of social marketing, direct selling is a go-to-market strategy. Take a gander at the future of direct selling company in India.
Direct selling has many advantages like low startup cost, consumer benefit, flexible opportunity for people looking to earn household income and women empowerment. Here are a few reasons why the future of direct selling company is bright in India.
Self-ownership and no time-bound
Direct selling enables you to operate according to your own rules and time. This is the main reason why more and more people are becoming a part of direct selling company especially women.
Low risk as the investment is low
This is also one of the key reasons for the rise of the direct selling network in India. Direct sales can be done with a very small investment. You just have to buy a one-time sales package, spend your time reviewing the products, take part in training etc.
Initiatives by the government
Initiatives by the government such as “Vocal for Local” and “Aatmanirbhar Bharat” are also responsible for making the future of direct selling bright. It has led the Indian people to consider the idea of locally produced goods being bought and marketed through direct sales routes, involving low investments and high returns.
Facts and statistics represented by experts
India has a direct selling market GDP ratio of 0.2 to 1.2 which has a huge potential to grow in the coming future
Currently, around 5.8 million people are involved in the direct selling industry
The industry is growing at a rate of 13-15% every year
The socio-economic studies show that a direct selling company is a plus point for the economy and it could be a significant factor in improving economic activity and creating jobs.
According to the experts of KPMG, the direct selling industry in Indiais expected to reach a turnover of Rs 64,500 crore by the end of 2025
The direct selling market has expanded drastically over the years. It has proved to be beneficial for people who want an opportunity to earn income and build a business of their own. Direct selling allows you to avoid expensive overheads and reduce advertising costs. Thus, it is a perfect way to build long-lasting customer relationships and grow a flexible low-cost business.
