Rural people have no access to big malls and market complexes and the direct selling industry has been making available all reputed international brands to them through their district level channels, SP Sharma, chief economist, PHD Chambers said while releasing IDSA-PHD Annual Survey Report.
Indian Direct Selling Association (IDSA) in association with PHD Chamber of Commerce and Industry released Annual Survey Report 2014-15 on the Indian Direct Selling Industry today in New Delhi. The gross sales by the Direct Selling Industry stands at Rs 79,583 million in 2014-15 as against Rs 74,722 million in 2013-14. The Direct Selling Industry has registered a growth rate of about 6.5 percent in 2014-15 as compared to 4.3 percent in 2013-14, informed Rajat Banerji, Chairman, IDSA.
Sharma said that during the Survey, 2500 sample consumers were selected to know the trend and many of them were rural consumers. “On the basis of the findings, it can said that there exists huge potential in rural areas for direct selling, not only terms of product selling but also for self- employment opportunities and women empowerment.”
The survey report was unveiled by Rajat Banerji, Chairman and Vivek Katoch, Treasurer of IDSA along with S P Sharma, Chief Economist, PHD Chamber, Zakir Hussain, Director, Internal Trade, Ministry of Consumer Affairs, Bejon Misra, International Consumer Policy Expert, Praveen Khandelwal, National Secretary General of the Confederation of All India Traders (CAIT) and Swati Maliwal, Chairperson, Delhi Commission for Women.
Responding to long pending demand of the IDSA to have a proper regulatory framework for the industry, senior government official Zakir Hussain said that the Department of Consumer Affairs is working hard to come out with a stop-gap guidelines for the industry by May, 2016.
An Inter-Ministerial Committee has been preparing draft laws for direct selling and the term of the Committee has been extended till May 2016. Hussain said, “ We are not sure how long it will take come up with proper regulatory framework for the industry, however we are working hard for stop-gap guidelines incorporating views of the industry, States and global laws & practices.”
“Conduct of the companies, conduct of sellers and consumer protect will be main features of the guidelines,” the official emphasised.
Emphasizing the contribution of Direct Selling Industry in empowering the lives of millions of people Rajat Banerji said that the growth of Direct Selling industry has been steady over the years and its contribution to exchequer has been significant. The growth of industry proves that the distribution model is gaining popularity among the consumers.
Katoch, said, due to absence of regulatory framework, the unfortunate incidents happened in the country, has somewhere affected the approach of Direct Sellers. Therefore the number of Direct has come down from 43,83,287 in 2013-14 to 39,29,105 in 2014-15.
Bejon Misra “Consumer is the king and Direct Selling is a great option for them. Direct Selling is a viable sales distribution channel. However, in the wake of some unfortunate events, where consumers have been duped of their hard earned, it is pertinent to protect the interest of the consumers. This can happen by giving appropriate recognition to the Industry and bringing regulatory clarity.
Sharma said that on the basis of growth perceptions of the Direct Selling Entities, the industry has the potential to enter double digit growth, going ahead, on account of strong legislation, reviving investments in economy and expanding consumer base across all segments of the economy. According to the survey, the industry is estimated to reach up to Rs 2,36,543 million by 2019-20 on account of conducive policy framework in our country.