The Direct Selling Opportunity Today
Research findings predict that the Global Direct Selling market will reach an excess of USD 479 billion by 2032 from its 2022 market size of USD 238.56 billion. The direct selling market in India accounted for over Rs. 19,000 crores in 2021-22 as per an ISDA survey, and the number of active direct sellers continues to grow in a healthy fashion.
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These positive developments in the industry indicate how far the industry has evolved in making an impact on global and local economies. To understand these changes, in this article, let’s explore the direct selling model, its economic impact globally, and the future outlook for the industry in India.
As the term suggests, the direct selling model (also known as network marketing or multi-level marketing (MLM)) does not have any intermediaries between buyers and sellers of goods. Instead, this model thrives on person-to-person interactions for selling and buying that are enabled by companies like QNET. Here, vendors sell their goods directly to consumers using a traditional physical store or online. Success of the model is driven mainly by the strength of interpersonal relationships and word of mouth.
The big attraction of direct selling for those who want to set up their e-commerce presence quickly and easily is they can do so comfortably with platforms like QNET. The barriers they might have encountered in the typical physical store model, such as costs or time requirements come down dramatically in these direct selling online platforms. It becomes super easy to set up shop and get business going almost immediately.
Direct selling is growing in appeal for various reasons and has proven to be successful at positively contributing to national and local economies such as India as well as the economy of the world at large.
The Global Appeal Of Direct Selling
The direct selling industry is gaining momentum as a significant contributor to the global economy with its proven capacity for job creation and GDP growth in at least 80 countries worldwide.
Why is the global direct selling market growing the way it is? Research points to factors like an increase in disposable income, Rapid urbanisation, and faster product developments. These are expected to drive further growth in the cosmetics and personal care segment, which holds a dominant share of the market.
Check out this report which gives an overview of the global direct selling industry. The report mentions the Asia-Pacific market as holding a whopping 44% market share, making it the largest market in the industry.
Of all the geographies, the Asia Pacific region has become the biggest market for direct selling owing to lifestyle shifts and preferences of consumers that have caused them to expand their budget for health and wellness and cosmetics products.
Also, consumers are more selective and careful about the product they are consuming and want to be sure of its authenticity before buying. Direct selling offers a highly adaptive and rapidly growing distribution channel for goods and services making it easier for consumers to reach the vendors of their chosen products and vice-versa for the sellers.
Plus, the appeal of a direct selling company like QNET is universal – its sheer potential to generate direct sales and incomes for those joining this revenue stream, create jobs, improve GDP, and result in social contributions has a direct, positive impact on the country’s economic development. The wider its geographic reach, the greater its impact on world economy. In line with these trends, QNET has on-board a wide variety of commercial ventures across a wealth of categories including wellness and nutrition, personal care, home and living, watches and jewellery, and education.
There are not too many industries that can match up to the level of support provided by direct selling to individuals and women, in particular, towards gaining financial autonomy and business acumen.
Read More: The direct selling industry empowers women to write their own success stories
Direct Selling In The Indian Context
The consumer’s increasing interest in fitness regimes, nutritional supplements, skincare and beauty products has meant bigger opportunities for direct sellers to find their business groove in emerging economies like India.
For a country like India which is hard-pressed for job opportunities, becoming a direct seller is a boon. It is opening up options for income generation because it unlocks potential business for associated industries like manufacturing, packaging, and logistics as well. And this can have a massive impact by inviting revenue contributions from not just the big Indian metros but also its smaller towns and villages.
There is plenty of reasons to explain the expanding scope for network marketing in India. The country enjoys a high-ranking position in the start-up world with millions of entrepreneurial ventures getting launched in recent times and has a booming consumer market. In this scenario, the direct selling model is perfect as it allows individuals to become sustainably self-employed as independent distributors, for instance, while being connected to a network of micro-entrepreneurs who promote and sell products within their communities. This kind of localisation allows the proximity of the consumer to innovative products while fostering the local economy.
The Future Of Direct Selling In India
India’s market for direct selling is vast with tremendous growth potential thanks to the lower costs of starting up, a diversified product portfolio, and the flexibility it offers individuals to do e-commerce at their own pace and tap into this revenue source without disrupting their personal commitments.
There is no denying that direct sellers have plenty of opportunities, especially in the Indian landscape. But they must look at how to capitalise and expand their market share to solidify future growth. This requires being proactive and innovative in their approach.
For example, finding a strategic partner would unlock doors to a wider network and consumer base. They could also leverage technology for innovation, build customer engagement and loyalty to build a much stronger network and continue to grow.
At the same time, direct selling companies/individuals need to ensure they have the trust and loyalty of their customers which relies heavily on personal connections and interactions. To do so, they need to stick to an ethical code of conduct which will take the distributors a long way forward in terms of transparency, product authenticity, and brand credibility. Companies like QNET have well-defined direct selling guidelines to safeguard the interests of customers and retain distributor loyalty.
Read More: QNET in Compliance with Direct Selling Guidelines
The need for transparency around company policies such as sharing knowledge with distributors, visiting customers, and legalising company identification, is not just a customer expectation but also a regulatory requirement determined by the Department of Consumer Affairs. That’s why direct selling companies like QNET are amplifying the appeal of the industry by offering the right training, mentorship, guidelines, and support to ensure it’s a profitable option for Indians seeking financial sustenance and independence.
Conclusion
The impact of direct selling can extend far beyond local and national markets in India. Consumer needs will continue to change that will impact how distributor networks respond and operate. This, in turn, will demand a great amount of adaptability, flexibility, deep knowledge of end-user preference, e-commerce trends, and technological advances for individual entrepreneurs using the direct selling platform to achieve maximum returns and competitive advantage.
As a global leader, QNET helps entrepreneurs onboard its direct selling platform in offering product quality and customer service of the highest standards while guaranteeing sustainable growth for their business in the future.
FAQs
- What are the advantages of Direct Selling compared to the conventional business model for an Indian seller?
Direct selling involves selling products and services directly to customers without the presence of a middleman or a retailer. Unlike conventional selling, these products are not sold in shops and malls. It can be done from the comfort of the seller’s home.
In the direct selling model, it’s easier for an individual to set up an online store using a platform such as the QNET model. At the same time, the start-up cost is lower than the traditional model and relatively less risky financially.
Another advantage is that you don’t need to be a degree holder and get some specific certification to become a direct seller. You don’t need to commit to a fixed number of hours every day for selling but actually can choose how many hours/days you want to spend on direct selling activities. Whether you do it part-time or full-time or flexi-hours is completely your decision.
- Is direct selling a relatively new area in India?
Direct selling has actually been around in India since the 1980s. However, it is still not adequately explored as an income source because of the traditional resistance to an unconventional business model and the scepticism that comes with it. In recent years, growing awareness of the industry driven by changes in consumer behaviour, expectations etc. has turned the tide in favour of direct selling as a profitable profession.
- What are some recommended ways to become successful at direct selling in India?
Direct selling companies and their direct sellers need to develop the right mindset, training, and support to build a successful direct selling strategy.
While profitability is important, you should ensure high quality, transparency of company policies, and a strict code of ethics to enjoy the trust of your hard-won customers and the loyalty of distributor networks.
