Delhi's direct selling market to reach Rs 1,500-2,000 cr by 2025

The direct selling industry in New Delhi has the potential to reach a size of Rs 1,500-2,000 crore by 2025, a Federation of Indian Chambers of Commerce and Industry (FICCI)-KPMG India report said on Tuesday.

According to the report -- 'Direct Selling: Delhi - A Global Industry, Empowering Millions' -- the growth is driven by the swelling share of middle income households, growth in consumer markets and an increase in the penetration of direct selling to globally comparable levels.

"We acknowledge the contribution of this industry and we have worked hard on preparing the guidelines for the industry. It is in the final stages of approvals and will be released very soon," said Chandralekha Malviya, Principal Advisor, Ministry for Consumer Affairs, Food and Public Distribution.

The report said the direct selling industry in the country is currently reckoned at Rs 7,500 crore and New Delhi has been one of the fastest growing direct selling states between 2009-10 and 2013-14 at a compound annual growth rate of 43 per cent.

It has recorded double digit growth of more than 16 per cent over the past four years, attracting a large number of Indian and foreign direct selling companies.

The report further estimated that the state has witnessed a continuous growth in the number of direct sellers in 2013-14 and over 250,000-300,000 direct sellers were estimated to be engaged with the industry, which is projected to grow further with the growth of the industry.

The direct selling industry is known to facilitate self-employment opportunities and promote women empowerment. In 2013-14, the industry provided self-employment to nearly 145,000-175,000 female direct sellers, the report added.

The report said the industry has also contributed to greater growth and technology percolation which stems from it sourcing manufacturing capabilities of Small and Medium Enterprises (SMEs) in the state which is in line with the government's 'Make In India' campaign.

Highlighting the growth contributors, the report suggests that the industry has the potential for greater penetration.

Other growth factors include robust gross domestic product (GDP) growth driving household incomes that is likely to triple by 2025, rapid urbanisation, and overall industry growth in key categories such as health and wellness, cosmetics, household goods, many of which are expected to grow at 10-16 per cent.

The report also suggests that a series of reforms were required ranging from immediate short term to long term measures to provide a conducive and sustainable operating environment in India for the companies operating in direct selling industry.

"We are very encouraged to learn from Consumer Affairs Ministry that the guidelines will be issued very soon. Direct selling industry will strictly follow the guidelines," Anukul Agrawal, Chief Executive of Vestige Marketing said.

--IANS

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