Direct selling business generated $3.25 billion in sales in India in 2021

30 Jun 2022 , 09:49 AM

According to a study from the World Federation of Direct Selling Associations in Washington, the Indian direct selling sector generated retail sales of USD 3.25 billion (about Rs 27,650 crore) in 2021 and retained its 12th place in the world rankings (WFDSA).

Taking sixth place in the Asia Pacific area, the Indian direct selling market recorded growth of 7.7% in 2021 and a CAGR (Compound Annual Growth Rate) of 15.7% in the last three years from 2018 to 2021, according to the research.

Leading firms in the Indian direct selling sector include Amway, Avon, Oriflame, Modicare, Herbalife, etc. According to a WFDSA analysis, the US has emerged as the leading direct selling market, accounting for 23% of overall sales and totaling USD 42.67 billion in retail sales.

Germany and South Korea, which each contributed 10% of worldwide sales and had direct retail sales of almost USD 19 billion, came in second and third, respectively. According to the WFDSA research, the worldwide direct selling market generated revenues of USD 186.10 billion in 2021, an increase of 1.5% in constant currency terms.

The wellness category reported the largest sales over the time frame and contributed around 35% of the worldwide sales, followed by the cosmetics and personal care sector with 25%. 78% of global sales were generated by the top 10 nations, which also included the US, Germany, South Korea, China, Japan, Malaysia, Brazil, Mexico, France, and Taiwan.

With China sales excluded, the sector grew at a three-year compound annual growth rate of 3.8% for the years 2018—2021, according to the research. Rajat Banerji, chairman of the Indian Direct Selling Association (IDSA), commented on the report, saying: “Despite the extremely unfavorable business environment brought on by the COVID-19 pandemic, the Indian direct selling industry has demonstrated resilience and sustainability, with the exception of a few minor hiccups at first.

“The industry’s dedication to additional heights, while preserving the interests of consumers and those of the direct sellers who have tirelessly labored to contribute to attaining the mark, is reaffirmed by the CAGR of 15.7% and the year-over-year growth rate of 7.7%,” Banerji added.

The WFDSA is an international organization that represents the global direct selling sector and is headquartered in Washington, DC. The IDSA is one of its 60 national associations. The self-regulatory agency for the direct selling sector in India is called IDSA. It serves as a conduit between the industry and the decision-making authorities.