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Direct selling industry to grow by 25-30 per cent: IDSA

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Direct selling industry to grow by 25-30 per cent: IDSA

According to the Indian Direct Selling Association (IDSA), direct selling industry will grow by 25 to 30 per cent in the current year. The optimism for this growth expectation stems from the projected expansion in the basic product categories ranging from home and personal care, education, weight management, food supplements and kitchenware.

It is also expected that it will also include more sophisticated products like software, online and offline software education, new varieties in food supplements, banking services, beverages, daily use eatable products and other services.

The National Survey stated that in 2000-01, the industry grew by 53.5 per cent in terms of turnover to reach a total of Rs 1374 crore from Rs 895 crore last year. The number of sales people grew to touch a new high of 8.06 lakh people, which was 1.16 lakh above the total number of people involved in direct selling last year. Over 70 per cent of the sales force constituted women and over 30,000 crore customers received service at their doorstep.

In terms of technology transfer, most IDSA companies had transferred technology and invested millions of dollars (over 120 million USD) in the Indian industry including the small-scale sector and sourced 90 per cent of the finished goods within India.

The direct selling industry invested more than 8 per cent of its total turnover on training and development of its people. It was also estimated that last year about 6.9 lakh people were earning for themselves through direct selling.

IDSA has decided to admit only those companies as its members who come clean through its vetting procedures, adhere to the most stringent business practices, offer money-back warranties/business trail offer guarantees, provide quality products and require a no or low investment to start the business.


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