MAM

India’s direct selling industry has Rs 645 billion potential by 2025: FICCI-KPMG report

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2015/12/08/ficci_logo.jpg?itok=6AHudeYb

NEW DELHI: Secretary in the Department of Industrial Policy and Promotion of the Commerce Ministry Amitabh Kant said that direct selling will have to be given a greater thrust as it empowers women, MSMEs and promotes manufacturing in India.

Speaking at FICCI DIRECT 2015, an annual flagship event for the Direct Selling (DS) industry, Kant said the industry has a potential to grow to Rs 1000 billion by 2025 much beyond the FICCI-KMPG report projection of Rs 645 billion.

Acknowledging the need for clarity in definition of direct selling and a separate regulatory framework for the industry, Kant said his department had already submitted the draft guidelines to the Ministry for Consumer Affairs for the direct selling industry and was hopeful for its implementation by various states.

He urged the industry to embrace technology as the industry can deliver better and even faster once technology becomes its strength.

The FICCI-KPMG report on ‘Direct selling- Mapping the industry across Indian states’ released by Kant showed that direct selling is today a successful industry operating in over 100 countries with a market size of $ 180 billion.

In India, the market was estimated at Rs 75 billion (2013-14), and formed around 0.4 per cent of the total retail sales in the country.  To showcase the potential and highlight the opportunities and challenges faced by the DS industry, FICCI organizes its annual event on Direct Selling ‘DIRECT’ every year.

FICCI Secretary General A Didar Singh said “Indian Direct Selling Industry” is an important component of the Indian economy and acknowledging this, we at FICCI through our focused task force on direct selling is working dedicatedly towards the growth of this industry and seeking regulatory clarity for this new industry. FICCI is working closely with the Central and State Governments on the same and today’s conference is a step in that direction. Today, we have launched the FICCI-KPMG report on the current state and contribution of Direct Selling industry in various states. This would be a reservoir of information on how this industry is contributing towards the development of various parts of India. During the event, he assured Kant that FICCI would deliver a white paper on “Technology for Direct Selling”.

The Report ‘Direct 2015 – Direct selling- Mapping the industry across Indian states’ by FICCI-KPMG in India highlights the current challenges faced by the industry and the potential that the industry holds in select Indian states.

According to the report, the industry has recorded high double digit growth of about 16 per cent over the past four to five years. The market has grown to become a key channel for distribution of goods and services in the country, especially for health and wellness products, cosmetics, consumer durables, water purifiers and vacuum cleaners.

The report attempts to analyse the region-wise direct selling market comparing and contrasting growth patterns. In the last five years, the industry has recorded strong growth rates especially in the states of Assam, Delhi, Punjab and West Bengal. North India has emerged as the largest region by market size and accounted for Rs 22 billion in 2013-14; South India which holds the second highest share of the direct selling market was pegged at Rs 19 billion in terms of revenue in 2013-14. While the north east is currently the smallest market, it has recorded the highest growth rate of 14 per cent in India with revenues of Rs 9 billion. The growth has primarily been driven by rising income levels, high rate of urbanization and growing consumerism in the states.

The report also lists the challenges faced by the direct selling industry, one of the biggest being the lack of regulatory clarity.

The direct selling industry has significantly contributed to women empowerment, skill development, technology percolation and the growth of the SMEs sector in the states, besides contributing to the state exchequer. Total indirect tax contribution by direct selling industry to the government in FY14 alone is estimated at Rs 740-790 million. In addition, the industry also provides a viable means of alternative income, which promotes self-employment. Going ahead, the industry is expected to be driven by factors such as growth in consumer markets and increase in the penetration to globally comparable levels.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/17/Vinay_Singhal-Amit_Gupta.jpg?itok=310KaVnH
WittyFeed brings Httpool on board as sales partner

MUMBAI: Httpool has appointed WittyFeed as its partner to monetise the website’s display ad inventories and be its exclusive representative for India.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/17/voda_0.jpg?itok=88Fe3vhg
Vodafone launches industry’s first end-to-end IoT solution

MUMBAI: The internet has come a long way from connecting only mobile phones and laptops to include smart homes, wearable technology, and smart cities. With the growing recognition for Internet of Things (IoT), the market for IoT in India is poised to reach $9 billion by 2020.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/17/delhi.jpg?itok=ts4wb1wL
Virat Kohli & Ola team up against Delhi air pollution

MUMBAI: With Delhi-NCR battling smog and heavy air pollution levels over the past week, Ola has kicked off the fourth leg of its year-long campaign, #FarakPadtaHai. The campaign was launched on 5 June, World Environment Day, to raise awareness about congestion and pollution issues and encourage the...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/17/airtel%20800x800.jpg?itok=BjRBdZD9
Airtel & Karbonn launch affordable smartphones for aspiring India

MUMBAI: In order to strengthen its presence in the ongoing telecom battle, Bharti Airtel will launch two new Android-powered 4G smartphones in partnership with Karbonn Mobiles.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/16/cera%20800x800_1.jpg?itok=k5GA-lHT
CERA hands over full-service charge to Publicis India

MUMBAI: Publicis India has won a multi-agency pitch to handle the full-service responsibilities of CERA, the home solutions provider based out of Ahmedabad. It will be taken care of by its Delhi office.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/16/mansoor-ali.jpg?itok=Am77kUB4
FCB Ulka to handle Hamdard creatives

MUMBAI: Hamdard Laboratories has assigned the creative mandate for its flagship brands to FCB Ulka following a multi-agency pitch.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/16/categoery%20800x800_0.jpg?itok=gvmdi6C_
Fair & Lovely assigns digital mandate to The Glitch

MUMBAI: HUL’s largest skincare brand Fair & Lovely has handed its digital mandate to The Glitch. The agency will manage its communication strategy, social media marketing and brand management across digital platforms. The account will be handled from Mumbai.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/15/BankBazaar%20800x800.jpg?itok=zotFfxm9
BankBazaar uses music to make you #GoPaperless

MUMBAI: Online financial marketplace, BankBazaar, has launched a #GoPaperless music video to encourage digital adoption for finance-related queries. Ditching the staid old set-up, the music video gives personal finance a fun twist and explains the advantages of paperless banking in an unexpected...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/15/Pantene.jpg?itok=ebEw0Ykt
Lilly Singh & Priyanka Chopra promote Pantene hair oil replacement

MUMBAI: The memory of our mothers chasing us to apply oil in our hair while we bounce around to escape it is a memory almost every Indian woman remembers. To solve this, Pantene has roped in YouTuber Lilly Singh and Priyanka Chopra.

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories