Counterfeit products hit direct selling industry in India: KPMG-Ficci study

Report calls for discontining practice of showcasing direct selling products in retail stores

Counterfeit products are posing a serious challenge to the Rs 75-billion direct-selling industry in the country, according to a study conducted by KPMG-FICCI, released on Friday.

“Direct-selling products should not be sold through retail stores. …Many retailers have become direct sellers. …This leakage …through traditional retail channels is contradictory to the very nature of direct selling and needs to be adequately addressed. This channel also encourages the sale of counterfeit products which affects the brand,” the study said.

Even though most direct-selling companies initially started in the south, many now have pan-Indian operations. Maharashtra, Tamil Nadu, Kerala and Andhra Pradesh