As the direct selling segment continues to penetrate further into villages and small towns, the growth figures are bound to swell and drive adoption of new and innovative products. Along with increased consumer awareness and proximity to buyers providing a unique dynamic shopping experience, the direct selling segment is poised to take a massive leap. Various industry reports suggest there has been a consistent rise in the number of active direct sellers in the country. The number of active direct sellers in India increased from 8.4 million in 2021-22 to approximately 8.6 million in 2022-23, marking a 2.3% year-on-year growth. The industry's overall sales turnover also reached around ₹21,200 crore in 2022-23, driven largely by wellness and personal care products. Factors such as growing awareness around health and unique product formulations have played a catalytic role in the growth of the segment.

The heart of India comprises the hinterland and small towns and cities. Direct selling has over the years managed to create millions of livelihood opportunities to build a sustainable ecosystem. Direct selling has also emerged a major source of income for job seekers and students pursuing higher education. It also offers a low-barrier entry point for individuals looking to become entrepreneurs, particularly in rural and semi-urban areas. In a country like India where there are limited jobs, direct selling has turned out to be an effective solution for alleviating unemployment woes. Prime Minister Narendra Modi has outlined India’s economic ambitions and steps needed to achieve the dream of Viksit Bharat by 2047, which envisions economic growth, sustainable development goals, improvements in the ease of living and doing business, enhanced infrastructure, and strengthened social welfare initiatives.

Direct selling will be playing a crucial role in helping India achieve this goal. It helps nurtures essential business skills such as salesmanship, networking, and leadership, enabling the generation of self-reliant professionals. Besides these features, low capital requirements and high personal engagement make it resilient during economic uncertainties. Thus, direct selling is the most seamless path of becoming an entrepreneur and fosters an ecosystem which further paves the way for a thriving entrepreneurial ecosystem. Even though online shopping has been lapped up by citizens, the lack of trust factor and an unpleasant experience with a product can force them to shun that route and opt for other modes of shopping. In contrast, direct selling offers customers more affordable options and the best sources for customers to find the right kind of products, more so during festive seasons. Other than a seamless buying experience, direct selling has been able to generate livelihood opportunities for housewives and retirees.

India is going through a crucial transformative phase. It is imperative to embrace the shifts taking place to navigate future uncertainties and enable the country to take its rightful place in the global high table. For that to happen, the direct selling segment must fulfil its untapped potential and provide the necessary force to power the country’s growth engine.

This article is authored by Sanjeev Kumar, president, Association of Direct Selling Entities of India (ADSEI), New Delhi.