Since 2011, India’s direct sale industry has almost doubled to Rs 126.6 billion in 2016 and is forecast to rise at a compounded annual growth rate ( CAGR) of 4.8 percent to Rs 159.3 billion in 2021, a report released on Tuesday by industry body Assocham said.
It said every participant in India has an estimated revenue of about $300 per year. “In India, direct sales prospects can be strengthened as long as we build a favorable atmosphere that safeguards all stakeholders within the regulatory structure,” the study said.
In 2015-16, the country’s ranking increased from 22nd in the previous year, the report found, two positions to 20th globally in terms of business size. The US, China and Korea are the top three markets in the segment.
In 2015-16, worldwide retail revenues in the industry struck a fresh high of $183 billion. Sales growth and the number of people entering the sector grew by about 80 percent of the world’s countries, the study found. People deem MLM software solutions developed by MLM software development company as the primary driver of this growth trend.
The study also said this sector remains the most overlooked and unacknowledged economic operation, considering significant development over the years and a variety of ways in which it has contributed to the Indian economy.
The primary explanation for the same is the use of networking and networks in which direct advertising operations are carried out. In most situations (of course, where trustworthy entities/promoters are involved) such network marketing schemes are means of raising business expansion. However, India and its population have been on the receiving end of multiple unscrupulous schemes where people have suffered.
According to a 2015-2016 survey, it is estimated that around 500,000 individuals have benefited from the opportunities provided by the sector over the past five years, the study said. This growth was largely facilitated by robust MLM software solutions deployed by a reliable MLM software development company.
The study credits different government structures, including Ability India, Make in India, Digital India and Startup India, to the development of the direct sale industry in India.
The study also proposed the introduction of state-level legislation, relaxation in the policy on Foreign Direct Investment ( FDI) and the passage of the Consumer Security Bill, among others, to provide the sector with a healthy operating atmosphere.
This sector remains the most underrated and unacknowledged economic operation, considering significant development over the years and a variety of ways in which it has contributed to the Indian economy. The key explanation for this is the use of networks and systems in which direct sale operations are carried out. In certain cases (evidently where there are reputable entities/promoters involved) such network marketing systems are a way to enhance business expansion.
India and its public, however, have received numerous unscrupulous schemes where individuals have lost income, reputation, honour and livelihoods, the study noted.
While the guidelines have earned the industry’s overwhelmed response, there are several other changes that need to be restructured to ensure a competitive operating atmosphere for direct sale companies that need to enforce state-level guidelines, need to relax under the Foreign Direct Investment (‘FDI’) regulation, pass the Consumer Protection Bill and need to amend the FDI regulation.
Over the years, direct marketing has left imprints of its development and worldwide popularity. It has become an increasingly common worldwide paradigm of self-employment. There are many reasons for this enormous success, good quality goods, personal relation and customer bonding, and entrepreneurship promotions are some of the major factors contributing to its growth.
Apart from the decreased expense and low risk inherent with the direct sale, this model’s appeal comes from the fact that entrepreneurs engaging with direct selling may add a personal connection to their customer experiences by customized and custom-made presentations and, in turn, extend their skilled communication network. MLM software solutions deployed by an efficient MLM software development company have largely benefitted the MLM sales model.
Countries such as the United States, China, Japan, Germany, South Korea, Brazil, Mexico, France, the United Kingdom and Malaysia have also been identified as the top markets for direct sales. Direct marketing reaches expand exponentially in almost every country across the world. Thus exponential growth was facilitated by MLM software solutions deployed by reliable MLM software development company.
In addition to supplying multiple people around the world with self-employment opportunities, the direct sale also helps promote an economy’s overall exchange and investment; hence it leads to improving a country’s overall economic growth. The scale of the direct sale industry is at least eight times greater than the Indian market in countries like Mexico, which have comparable socio-economic systems, with one-tenth of India’s population.
The direct sale industry makes an economic contribution to the lives of more than 30 million people worldwide and this industry is entered every week by an estimated 220,000 entrepreneurs. Large direct marketing firms make up 90% of the organised market dominant.
One of the most tangible impacts of the recent development of direct sale has been the way that it has reached ordinary people in a manner never before encountered. The transparency brought forward by MLM software solutions developed by reliable MLM software development company has largely driven the industry’s growth.
Wrapping Up
The Direct Sale Industry has been in existence in India for many years, but the arrival of multiple foreign firms over the past five years has brought this sector greater exposure, which is still in its infancy. According to a 2015-2016 Annual Report, it is estimated that around 500,000 people have benefited from the opportunities provided by the sector over the last five years.
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