Direct selling sector witnesses 12% increase in FY23 to Rs 21,282 cr

By Sneha Sengupta On Mar 20, 2024

According to a research, the Indian direct selling sector saw a 12% gain in FY23, with sales of Rs 21,282 crore (about USD 2.5 billion), driven by the wellness and cosmetics & personal care categories. In addition, the Indian Direct Selling Association (IDSA) released its annual survey report on Wednesday. It shows that there were 8.6 million active sellers in FY23, with 63% of them being male and the remaining sellers being female partners.

Prior to the epidemic, the direct selling profession was primarily dominated by women. However, this has changed, and a growing number of young people between the ages of 25 and 44 are entering the field, according to IDSA Chairman Vivek Katoch, as quoted by PTI.

The total sales turnover of Indian direct selling was approximately 70%, with the top 10 states contributing to this percentage.

“In the financial year 2023 direct selling industries witnessed robust double-digit growth, marking a significant improvement. This upward trajectory reflects a promising outlook for the industry, underpinned by consistent growth over the years,” stated Katoch.

“Over the past four years, there has been a consistent upward trend in the number of Active Direct Sellers across the country,” he added.

The global direct-selling industry saw a slight decline of 1.5% in the same period, coming in at roughly USD 172.9 billion from the industry value of USD 175.6 billion in 2021–2022, but the Indian direct-selling sector reported double-digit growth in FY23 as it “demonstrated resilience and growth despite challenges.”

In order to establish comparable monitoring panels, IDSA is currently in advanced talks with state governments and their Consumer Affairs Secretaries.

Maharashtra, West Bengal, Uttar Pradesh, Bihar, Karnataka, Odisha, Haryana, Gujarat, Assam, and Delhi are the states in question. Major states that have not yet notified include Delhi, Uttar Pradesh, Bihar, Punjab, Haryana, Assam, and Karnataka.

But Katoch also mentioned that certain states’ policy levels present difficulties for the business. “Only 10 states have constituted committees so far to monitor the direct selling industry,” he added.

“We are hopeful that this year, most of the state governments will notify the monitoring committee,” Katoch wrapped up.