Direct selling companies like Qnet have always been a major contributor to the economy and have helped millions of people find employment and make their living around the world. In the past year, this trend has only been made faster by the onset of the Coronavirus pandemic and the economic problems that ensued, as more and more people have turned to entrepreneurship and businesses. But what is the future of direct selling in India? Is it as bright as the world makes it seem, or has the facts and figures been exaggerated?
The facts and figures
As per a report by the KPMG and FICCI, the direct selling industry in India has seen a drastic growth of more than 16% in the past five years, and this trend is only expected to continue. The report also predicted that the industry is expected to reach over Rs. 645 billion by 2025. This figure comes from the fact that the industry has grown from Rs 80 billion to over Rs 236 billion in the five year period from 2015–2016 to 2019–2020. It is also estimated that more than 18 million Indians will find employment in the industry by 2025. These figures show that the future of direct selling in India is a very bright and promising one indeed.
Schemes that helped the industry
The rapid growth in the direct selling industry in India is being helped in no small part by the many schemes and programs that the Indian government to help and motivated new businesses and entrepreneurs. This includes policies like
- Skills India
- Make in India
- Women empowerment
- Startup India
- Digital India
All of these schemes and policies have helped the future of direct selling in India to be a bright and promising one indeed.
How direct selling contributes to India’s economy?
In developed countries around the world like the US, UK, China, and Japan, directs selling companies have become a major contributor to the economy as people have turned away from traditional markets and businesses to a network marketing environment. In the past year alone, top direct selling companies like Qnet, Amway, Tupperware etc., has contributed more than $50 billion to the world economy. India is a major part of this contribution, and it is only expected to grow as time passes. The country generates a workforce of over 12 million every year and, with the current economic conditions, finding employment opportunities for such a massive force can be a concern. This is why people have begun looking for alternative opportunities, and the direct selling network marketing business in India is a great option for this. The government of India has also helped in the growth of the direct selling network marketing industry as it provides valuable employment opportunities and helps budding entrepreneurs.
Direct selling network marketing business is also an industry that helps women to find employment and empowerment. Nearly 60% of direct selling entrepreneurs are women. This is only helped by the Women Empowerment Initiatives, only adding to the future of direct selling in India.
Why it is the best time to join the industry?
According to the Corporate Finance Institute, all industries have a life cycle that consists of 5 distinct stages- start-up, growth, shakeout, maturity, and decline. According to popular consensus, the best place for someone to enter an industry is at the growth stage if they missed out on the start-up stage. Popular industries like Social media and online shopping have passed the growth phase of their lifecycle and has reached a maturity stage. However, the direct selling network marketing business in India is currently going through its growth phase, making it an ideal time to enter the industry.
These are just some of the factors that I believe make the future of direct selling in India a bright and promising one. If you have any more reasons to add to the conversation, you can do so through the comments below. Also, follow my page for more content related to the direct selling business and the network marketing industry.