Welcome Guest

Businessex.Com
Home News India's direct selling industry has potential to engage over 10 million women by 2025

India's direct selling industry has potential to engage over 10 million women by 2025

Tags: FICCI, KPMG, Public Distribution and Consumer Affairs, ITC

December 03, 2014 | COMMENTS ( 0 )

India's direct selling industry has potential to engage over 10 million women by 2025

The FICCI-KPMG report on the direct selling industry in India, released by Ram Vilas Paswan, Union Minister of Food, Public Distribution and Consumer Affairs, in Delhi today at a FICCI conference - "DIRECT 2014", indicates that the direct selling industry has the potential to provide self-employment to 18 million.

The report indicated that with the right policy stimulus, this industry might well reach its potential of INR 64,500 crores, an eight-fold increase in twelve years. Minister Paswan released this report along with Keshav Desiraju, Secretary Consumer Affairs, Sidharth Birla - President of FICCI, Kurush Grant ED of ITC, as well as other industry representatives.

The FICCI conference was attended by a number of India and global industry dignitaries and other stakeholders. Direct selling is a global industry, operating in over 100 countries with a market size of $167 billion. It refers to the selling of goods and services to the consumers away from a fixed retail outlet, generally in their homes, workplace etc., through explanation and demonstration of the product by direct sellers.

The industry also has a significant impact on socio-economic parameters because of its nature. In less than two decades, since it took-off in India, it has provided self-employment opportunities to more than 50 lac people in India as direct sellers.

Nearly 60 per cent of these direct sellers are women, thus empowering them with additional income and transferable skills. The industry also generates direct employment through manufacturers and other service providers involved throughout the value chain of the industry. The industry has led to technology percolation and enhancement of many SMEs by association with international companies. Also, many direct selling companies have been in the forefront by actively contributing towards social activities.

Going forward, the industry has the potential to reach a size of Rs 64,500 crores by 2025 driven by growth in the consumer markets and increase in the penetration of direct selling to globally comparable levels. This will have a cascading effect on the socio-economic parameters associated with the industry. There will be commensurate capital investments in manufacturing and in technology acquisition.

USA, Japan and China are key markets for the industry. Back home in India the market is estimated to be around Rs 7,200 crores, which is a far smaller percentage of the size of the economy, when compared to other countries. The FICCI-KPMG white paper launchedtoday highlights the challenges faced by the industry in India, and suggests a roadmap for enabling the industry going forward.

At the release, Union Minister said, "My ministry is working towards creating a regulatory framework for the emerging industries like e-commerce and direct selling- under our internal trade reforms agenda, through which we can help in distinguishing between the genuine and fraudulent players, and our key concern is to safe guard the interest of consumers."

According to the report, direct selling is one of the fastest growing non-store retail formats in India, recording double digit growth of more than 20 per cent over the past five years. In the year 2012-13 it has been estimated to contribute taxes of Rs 1,000 crore to the exchequer.

The report also highlights the need to bring regulatory certainty for the industry, which is mistakenly coupled with fraudulent money circulation schemes because of a lack of clarity in existing legislations. The report also lays out a roadmap for mitigating the regulatory challenge for the industry by recommending an immediate amendment in the governing legislation, followed by a clear definition and categorization as "wholesale cash and carry trade" to smoothen FDI inflow, and an independent legislation and nodal ministry for the industry thereafter.

Sidharth Birla, President, FICCI commented on the occasion saying, "The industry holds large potential not only for the economic, but also social development of India. With growth in the industry, it is projected to employ nearly 1.8 crore direct sellers, with almost 1.1 crore of them as women. The industry is also expected to contribute a tax of Rs 9,000 crore to the exchequer. Hence, it is important that the growing economy like India should encouragerightful emerging businesses by creating a favorable policy environment."

Rajat Wahi, Partner, KPMG, mentioned in his address at the conference "The direct selling industry is unique in the number of people it engages with directly. No other industry is able to touch so many lives, or is as close to its customers as direct selling. The benefits of the industry have been recognized globally, and it holds large potential in India as well. There is a need to create an enabling environment for the industry to thrive."

Please add your comment

Rating
Not readable? Change text.
Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Other NEWS

Delhi based startup i2e1 raises $5,00,000

Delhi based startup i2e1 raises $5,...

December 10, 2015

Delhi-based i2e1, a smart network player platform which aims to provide low-cost and free internet to consumers and actionable ana....

Cab aggregators collaborate with state governments to boost entrepreneurship

Cab aggregators collaborate with st...

November 06, 2015

Ola and Uber, cab aggregators have signed agreements with Rajasthan government for skill development and creation of entrepreneuri....

Phase II of startup incubator T-Hub to be operational soon

Phase II of startup incubator T-Hub...

November 04, 2015

Telangana government is planning to expand T-Hub, its ambitious incubator programme, in its second phase with about Rs 150 crore i....

Sabse Technologies receives investment from Ratan Tata

Sabse Technologies receives investm...

November 04, 2015

Global telecom carrier, Sabse Technologies Inc, started by Hotmail Founder Sabeer Bhatia today announced that Tata Sons' Chairman ....

Mobile startup BlackNGreen seeks international expansion

Mobile startup BlackNGreen seeks in...

November 02, 2015

Buoyed by a strong demand for value added services, mobile startup BlackNGreen is eyeing revenue of Rs 350 crore in the next one y....

Startups seek better future under Hay Group's programme

Startups seek better future under H...

October 30, 2015

Global management consultancy, Hay Group will help 100 selected entrepreneurs transform their startups into successful companies o....

Quintype raises USD 3.25 million for product enhancement

Quintype raises USD 3.25 million fo...

October 27, 2015

Quintype, a data-driven publishing company raised USD 3.25 million to enhance product and business development. ....

Hospitality aggregator startup Qik Stay raises $250K

Hospitality aggregator startup Qik ...

October 27, 2015

Delhi-based Qik Stay, a hotel branding and aggregator startup, has raised $250K in seed round of funding from venture capital firm....

Milk Mantra targets a turnover of Rs 150 crore this fiscal

Milk Mantra targets a turnover of R...

October 26, 2015

Odisha-based startup dairy firm, Milk Mantra is targeting a turnover of Rs 150 crore this fiscal.....

Vista Rooms creates app on Instagram, targets tier II & III cities

Vista Rooms creates app on Instagra...

October 23, 2015

Mumbai-based online budget accommodation aggregator, Vista Rooms has created an app-like experience on Instagram where travellers ....

Jiyo Natural receives funding from Indian Angel Network

Jiyo Natural receives funding from ...

October 23, 2015

Indian Angel Network (IAN) has invested an undisclosed amount in Bengaluru-based consumer health food startup, Jiyo Natural.....

​​Vodoo raises USD 1 million from SAIF Partners

​​Vodoo raises USD 1 mi...

October 15, 2015

Deals and price comparison application, Vodoo has raised USD 1 million (around Rs 65 lakh) from SAIF Partners in a seed funding ro....

IBM launches public data centre in Chennai, partners with Nasscom to boost start ups

IBM launches public data centre in ...

October 15, 2015

Technology giant, IBM today launched public data centre in Chennai to tap into growing demand from financial services and governme....

For Nasscom, PPP will boost startups in India

For Nasscom, PPP will boost startup...

October 14, 2015

In the wake of some reservations over the central government creating startup funds, Nasscom's "10,000 startups" Vice President, R....

WalmartLabs to seek partnership with Indian startups

WalmartLabs to seek partnership wit...

October 14, 2015

WalmartLabs, the digital arm of US-based retailing major Walmart Stores, is scouting for startups in India for partnership and wor....