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/2017/08/18/mccafe.jpg?itok=N2RvyH_X
'McCafé for everything' digital campaign launched

McDonald’s India has rolled out a thematic, digital-led campaign ‘There’s A McCafé For That’. Whatever the feeling might be, or whatever may the reason to go out and have a beverage, there’s always McCafé for it.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/18/vi.jpg?itok=x_hqfALu
Vizeum wins media mandate for Bauli India

Vizeum, the full-service media agency from Dentsu Aegis Network, has bagged the media mandate for Bauli India Bakes & Sweets, 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/2017/08/17/digital-display.jpg?itok=_FAr0SjC
36% more active digital display ads this month

The whole world is going digital and so is digital advertising with advertisers vying hard to capture quality publishers. In turn, there are a lot more publishers competing for marketers too. And both sides are constantly looking at new tech and services to grab a larger piece of pie from the...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/17/Anshuman_Chakravarty-Mayur_Hola.jpg?itok=jyOnCxRL
Dhoni narrates old bat & new Orient LED story

MUMBAI: Orient Electric, a part of the USD 1.6-billion CK Birla group, has launched an integrated advertising campaign with its long-standing brand ambassador MS Dhoni for its range of LED Battens.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/17/HeroSalutes.jpg?itok=inQX9suG
I-Day: Hero salutes true heroes behind heroes

MUMBAI: Hero MotoCorp has rolled out its Independence Day campaign with its third edition of #HeroSalutes. The campaign has been conceptualised by Law & Kenneth Saatchi & Saatchi and has been on-air from 11 August.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/mullen.jpg?itok=lgYKe55j
GolinOpinion appoints Asheesh Malhotra as ED

Asheesh Malhotra has parted ways with advertising to pursue a career shift. He leaves his role as president at Bates CHI & Partners to join GolinOpinion, the PR division of PointNine Lintas, as the executive director. This marks a significant shift for Malhotra, who’s spent his entire career in...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/complan.jpg?itok=i-mjTQ4S
Complan goes for brand makeover, focuses on WB & TN

Complan, a health drink brand, is going through a complete brand makeover and has adopted a new brand philosophy – Don’t Just Be Tall, Stand Tall. Complan has lined up a series of media innovations to reintroduce the brand in the market.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/asianpaints.jpg?itok=X1z0gHeL
Asian Paints adhesives TVC - a humourous take on 'joints'

Have you met Vicky Contractor? It's time to tune in to the engaging digital film that presents Asian Paints' range of adhesives catering to carpenters and contractors.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/himlayan_0.jpg?itok=VMea8ZCP
Tata's 'Himalayan' mineral water enters U.S.

Tata Global Beverages’ natural mineral water brand Himalayan has entered the U.S market.

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories