7/12/2020 India’s Direct Selling Industry Trains Over 5 Million People Annually and is a Core Component of the Government’s

rnment’s Flagship Campai…

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FICCI

(http://www. cci.in/)

India's Direct Selling Industry Trains

Over 5 Million People Annually and is a
Core Component of the Government's
Flagship Campaigns – Make in India,
Digital India, Skill India & Startup India
 Wednesday, November 30, 2016 6:05PM IST (12:35PM GMT)

FICCI‐KPMG Report ‐ 2016 – "The contribution of Direct Selling to Building India"

(downloadimage?recid=4738)

(L to R), Ms Leena Jaisani – Head, FICCI – Retail, FMCG and Direct Selling, Mr. Muninder Anand , Director, K
Anshu Budhraja, GM, Amway, Ms. Madhulika Sukul, Additional Secretary, Department of Consumer A airs
of Consumer A airs, Food and Public Distribution, Dr. A. Didar Singh, Secretary general, FICCI, Mr. Pra
Khandelwal, Secretary General, CAIT, Mr. L Mansingh, Former Secretary, Ministry of Consumer A airs, at t
Direct 2016

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7/12/2020 India’s Direct Selling Industry Trains Over 5 Million People Annually and is a Core Component of the Government’s Flagship Campai…

(L to R),
Ms Leena
Jaisani –

 
New Delhi, Delhi, India:  Mr. Amitabh Kant, Chief Executive O cer, NITI Aayog said that direct
selling will have to be given a great thrust as it empowers women, MSMEs and promotes manufacturing
in India, at FICCI DIRECT 2016, annual agship event for DS industry.

Mr. Kant applauded the e orts of the Ministry of Consumer A airs to come up with the guidelines to
govern the direct selling industry and is hopeful for its implementation by various states. He added that
an e ective and time bound implementation of the guidelines would act as a growth stimulator for the
budding DS industry.

He also urged the

industry to embrace
technology as the
industry can deliver
better and even faster
once technology
becomes its strength. He
congratulated the direct
selling industry for the
e orts that they are
putting in towards
building the national
economy and said that
the sector is a major contributor towards the Indian growth story and promised to support the industry
in addressing the hindrances and bottlenecks in due course of time. Also, he added that there is a huge
opportunity that the industry raises in terms of pushing India towards the digital age.

Ms. Madhulika P Sukul, Additional Secretary, MoCA released FICCI‐KPMG Report‐ 2016 – ‘’The
contribution of Direct Selling to Building India’’

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7/12/2020 India’s Direct Selling Industry Trains Over 5 Million People Annually and is a Core Component of the Government’s Flagship Campai…

During her keynote address Ms. Madhulika P Sukul, Additional Secretary, MoCA quoted that she
delighted to see the contribution of the sector towards women empowerment and the gures of more
than 60% women workforce associated with the sector has been astounding. Ms. Sukul urged the
industry to join hands with MoCA and work towards the e ective implementation of the guidelines for
the sector that the ministry has come up with. The Additional Secretary promised that MoCA would
continue to work towards the welfare of the consumers with active industry support and encouragement.

Further Mr. Anshu Budhraja, GM, Amway India Enterprises presented the industry perspective and said
the sector has immense potential in terms of the workforce that it trains and the job opportunities it
generates. Mr. Budhraja said that the industry needs to work as per the Gold Standards, of which self-
governance is a core concept. He congratulated MoCA for coming out with the much awaited guidelines
for the sector and said that the guidelines would help in adding further value to the growth path of the
industry. Mr. Anshu Budhraja quoted “by 2025 the industry is expected to grow to ₹ 72000 crore from ₹
7200 crore in 2016 providing 1.8 million self-employment opportunity.”

Mr. Praveen Khandelwal, General Secretary, CAIT, emphasised on the need of having a retail policy that
will encompass the cross sectorial approach and would help in adding avenues of growth for the sector.
He said that there is a need to convert the guidelines proposed for the DS sector into laws towards which
the Government is working relentlessly. Also, Mr. Khandelwal quoted that the passing of Consumer
Protection Bill in the parliament would add more avours to the development of the sector by reducing
the mischief and Ponzi operators. He also said that a board of internal trade that would look upon the
matters associated with the internal trade and retail sector should be formulated with adequate
representation from all the concerned stakeholders from the industry as well as the Government. Mr.
Khandelwal quoted that retail, direct selling, e-commerce and SME’s are the four core pillars for the
development of the national economy.

Further on the occasion, Dr. A Didar Singh, Secretary General, FICCI said “Indian Direct Selling Industry
is an important component of the Indian economy and acknowledging this, we at FICCI through our
focused task force on direct selling is working dedicatedly towards the growth of this industry and
seeking regulatory clarity for this new industry. FICCI is working closely with the Central and State
Governments on the same and today’s conference is a step in that direction. I would like to congratulate
MoCA for implementing the much awaited guidelines to govern the sector. I am certain that the e ective
enactment of the same would facilitate the further growth of the sector and act as a growth catalyst.

Today, we have launched the FICCI‐KPMG report on the contribution of Direct Selling industry towards

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7/12/2020 India’s Direct Selling Industry Trains Over 5 Million People Annually and is a Core Component of the Government’s Flagship Campai…

building the national economy and its contribution towards the agship programs of the Indian
Government.  This would be a reservoir of information on how this industry is contributing towards the
development of various facets of the Indian economy.’’

Dr. Singh said that Industry 4.0, or Industrie 4.0, is the current trend of automation and data exchange
in manufacturing technologies. It includes cyber-physical systems, the Internet of things and cloud
computing. Industry 4.0 creates what has been called a "smart factory" and urged the industry leaders to
adhere to same. Dr. Singh also added that the bussing direct selling industry is exceptionally gender
friendly and has been a crucial part of women empowerment.

Direct selling, one of the oldest and traditional forms of selling, is today a successful industry operating in
over 100 countries, with a market size of USD180 billion. In India, the market was estimated at INR75
billion (2013‐14), and forms around 0.4 percent of the total retail sales in the country. To showcase the
potential and highlight the opportunities and challenges faced by the DS industry, FICCI organizes its
annual event on Direct Selling ‘DIRECT’ every year. Inter‐Ministerial committee (IMC) on Direct Selling
IMC formed under the aegis of MoCA has been working relentlessly towards enabling the growth
of the sector through several policy reforms and advocacies. FICCI is fortunate to be the
knowledge partner for the IMC for developing regulatory structure for this industry.

The event witnessed intense panel discussions on the topics “Way Forward Post Direct Selling
Guidelines’’ and “Direct Selling Contribution in Skilling, Women Entrepreneurship & As Food
Distributors’’ which comprised of representation from wide array of concerned stakeholders
including the Government and the industry. 

The panels suggested an e ective implementation of the guidelines by the states in a time bound
manner would yield wonders for the sector and would be an asset to it’s growth trajectory. Also, the
sessions highlighted how the direct selling has evolved as a core pillar of the Skill India campaign and
trains signi cant amount of workforce and makes them job ready. Also, the contribution of the DS sector
towards the empowerment of women has been signi cant and the phenomenal number of 62% women
workforce involved in the sector is remarkable.   

In continuation with Direct 2015, this year’s summit has scaled up to new heights. It is unprecedented
to have such a cohesive voice of all regional, sectoral and National associations working for this

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7/12/2020 India’s Direct Selling Industry Trains Over 5 Million People Annually and is a Core Component of the Government’s Flagship Campai…

sector to gather at one platform. The con dence is displayed in the sheer footfall of more than
500 delegates at this year’s conference.

This year’s KPMG report to be released at Direct 2016 on Nov 30th, takes a look at how the Direct Selling
industry has positively contributed to several agship schemes launched by the Government of India in
the past 2 years, namely:

Skill India: The Skill India scheme seeks to provide the institutional capacity to train a
minimum of 400 million people by 2022. The Direct Selling industry annually trains over 5
million people in marketing and communication skills, personality development and leadership
skills.

Make in India: Many Direct Selling companies now make in India. Some rely on MSMEs for
manufacturing their products, investing in & providing the right equipment and machines to
the MSMEs for production. Driven by these initiatives, several MSMEs have now developed
capabilities to cater to the needs of other MNCs and have commenced supplying to them, in
the process promoting the Make in India initiative

Women Empowerment: Due to the dominance of women centric products o ered under
Direct Selling, the industry provides self-employment opportunities to a large number of
women. In 2015 alone it has provided self-employment to over 3 million female distributors. By
providing income generation opportunities and trainings, Direct Selling promotes holistic
development of women.

Digital India: The Direct Selling industry is adopting measures in the digital sphere that not
only bene t the Direct Selling entities, but also ensure ease of doing business for its
distributors and improved experiences for its end consumers.  Mobile applications and
websites have been launched by Direct Selling companies for its distributors to order products,
monitor payments and access training modules.

Startup India: Direct Selling entities, are now catering to global FMCG clients. Direct Selling has
also promoted startups in avenues such as transportation and logistics, trainings, app
development, etc. 

According to the report, the industry has recorded high double digit growth of about 16 per cent over the

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7/12/2020 India’s Direct Selling Industry Trains Over 5 Million People Annually and is a Core Component of the Government’s Flagship Campai…

past four to ve years. The market has grown to become a key channel for distribution of goods and
services in the country, especially for health and wellness products, cosmetics, consumer durables, water
puri ers and vacuum cleaners.

About FICCI

Established in 1927, FICCI is the largest and oldest apex business organisation in India. Its history is
closely interwoven with India’s struggle for independence, its industrialization, and its emergence as one
of the most rapidly growing global economies. FICCI has contributed to this historical process by
encouraging debate, articulating the private sector’s views and in uencing policy.

A non-government, not-for-pro t organisation, FICCI is the voice of India’s business and industry. FICCI
draws its membership from the corporate sector, both private and public, including SMEs and MNCs;
FICCI enjoys an indirect membership of over 2,50,000 companies from various regional chambers of
commerce.

FICCI provides a platform for sector speci c consensus building and networking and as the rst port of
call for Indian industry and the international business community.

Our Vision: To be the thought leader for industry, its voice for policy change and its guardian for e ective
implementation.

Our Mission: To carry forward our initiatives in support of rapid, inclusive and sustainable growth that
encompass health, education, livelihood, governance and skill development.

To enhance e ciency and global competitiveness of Indian industry and to expand business
opportunities both in domestic and foreign markets through a range of specialised services and global
linkages.

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Photo Caption: (L to R), Ms Leena Jaisani – Head, FICCI – Retail, FMCG and Direct Selling, Mr. Muninder
Anand , Director, KPMG, Mr. Anshu Budhraja, GM, Amway, Ms. Madhulika Sukul, Additional Secretary,
Department of Consumer A airs, Ministry of Consumer A airs, Food and Public Distribution, Dr. A. Didar
Singh, Secretary general, FICCI, Mr. Praveen Khandelwal, Secretary General, CAIT, Mr. L Mansingh, Former
Secretary, Ministry of Consumer A airs, at the FICCI Direct 2016
(http://cms.businesswireindia.com/uploads/news-multimedia/images/FIcciImage_51196.jpg)

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