DIRECT SELLING IN INDIA

ANNUAL SURVEY REPORT 2018-19

Published by Research Partner

®
Indian Direct Selling Association
Message from Hon’ble Minister for Consumer Affairs, Food & Public Distribution

Page | 1
Executive Summary
Direct Selling is selling of goods and services to consumers away from fixed retail outlet, generally at
their homes or work places, through appointments, referrals. The products are sold through individual
representatives of Direct Selling entities called Direct Sellers who carry out thorough demonstration
while making such sales.

The global Direct Selling industry stood at around USD 192.9

billion in 2018 showcasing a growth of 1.2% from the industry
value USD 190.5 billion in 2017.
China is the leading country in terms of Direct Selling sales in 2018 with a Direct Selling sale of USD
35,732 million contributing around one-fifth of the Direct Selling sales globally. It is closely followed by
the United States of America having a Direct Selling sale of USD 35,350 million in 2018. China along
with the USA contribute more than one-third of Direct Selling sales globally in 2018.

Amway continues to be the leading Direct Selling organization with a global revenue of USD 8.8 billion
in 2018. Avon Products Inc., Herbalife, Infinitus and Vorwerk along with Amway comprise of the top 5
Direct Selling organizations in 2018 based on their global revenue.

The Indian Direct Selling Industry stood at around INR 1,30,800

million in 2018-19 growing at approximately 13% from INR
1,16,700 million in 2017-18.
The industry showed a Compunded Annual Growth Rate of approximately 16% growing from INR
83,085 million in 2015-16 to INR 1,30,800 million in 2018-19. The share of IDSA members in the total
sales of the Direct Selling Industry in India stands at approximately 60% as compared to 40% share of
non-members in 2018-19. Wellness products (which include products such as weight management
supplements, meal replacement bars & drinks etc.) contribute more than half of the Indian Direct Selling
Sales by IDSA members. This is followed by cosmetics and personal care (which include products such
as cosmetics, skin care, fragrances etc.) which contributes more than one-fourth of the sales by IDSA
members during 2018-19.

The Indian Direct Selling Industry’s contribution to the exchequer

stood at around INR 2,500 crores in 2018-19.
The number of active direct sellers (i.e. those who have ordered atleast once in the last 3 months) in
the country were around 5.7 million growing at ~6% from 5.4 million in 2017-18. The industry comprised
of almost equal number of male and female direct sellers in 2018-19.

North region contributed to around 27% of the Direct Selling

sales in the country in 2018-19. This was closely followed by the
West region with approximately 25% of the Direct Selling sales.
Maharashtra has the highest share of sales across the country with 13.3%, of the gross sales in 2018-
19, followed by West Bengal contributing more than 9% of the direct selling sales in the country in 2018-
19.

Page | 2
The key drivers of the growth in Indian Direct Selling industry are:

Direct Selling
Recognition of Direct Entrepreneurship /
Guidelines
Selling as non-store employment
implemented by
retail model opportunity
different states

Additional source of Adequate training and

Focus on Women
income / financial support from direct
Empowerment
independence selling organizations

However, there are few inhibitors that are limiting the growth of direct selling, especially the
unauthorized sales of direct selling products through e-commerce platforms such as Amazon, Flipkart
etc.

Misconception about the Direct Selling market

E-commerce selling Direct Selling products

Negative impact of fraudulent organization running in the guise

of Direct Selling organization

High Attrition of Direct Sellers

Page | 3
Team IDSA

Mr. Vivek Katoch,

Chairman, IDSA

Ms. Rini Sanyal,

Vice-Chairperson, IDSA

Mr. Jitendra Jagota,

Treasurer, IDSA

Mr. Rajat Banerji,

Secretary, IDSA

Mr. Chetan Bhardwaj,

General Manager, IDSA

Mr. Abhishek Kumar,

Assistant General Manager, IDSA

Page | 4
Team Kantar

Mr. Puneet Avasthi,

Senior Executive Director,
Insights Division
Puneet.avasthi@kantar.com

Mr. Shailendra Gupta,

Executive Vice President,
Insights Division
Shailendra.gupta@kantar.com

Mr. Rahul Bharadwaj,

Account Director,
Insights Division
Rahul.bharadwaj@kantar.com

Mr. Rajat Pratap Singh,

Account Manager,
Insights Division
Rajatp.singh@kantar.com

Mr. Pankaj Tuteja,

Senior Research Manager,
Insights Division
Pankaj.tuteja@kantar.com

Page | 5
8, Balaji Estate, Guru Ravidass Marg
Kalkaji, New Delhi – 110019
Ph: +91 11 4269 7800

Page | 6