OBTAINER - QNET

The turnover of the Indian Direct Selling Industry is expected to be
INR.108,430 billion (US$.1,975,980) in 2014-15 and this growth
would be manifold once there is a regulatory framework governing
the Direct Selling industry in India as it will harness the potential
of the sector and will provide transparency in the functional and
operational aspects of the industry.
There are broadly four areas that need government intervention.
These are:
(a) the provision of a clear definition of Direct Selling;
(b) streamlining of the foreign direct investment (FDI) policy;
(c) the enactment of a governing legislation for the sector and;
(d) the establishment of a nodal ministry or single point of contact.
OBTAINER: Which products sell the best in India?
IDSA: Health, comprising of products related to nutrition, wellness
and supplements, is the leading category within the product
landscape of the organized Direct Selling industry. Personal care
& cosmetics follow the sale chart in India.
OBTAINER: The party plan is used successfully by some of the
Direct Selling companies. Which other method is popular in your
markets?
IDSA: Apart from party plan other companies follow person to
person selling and person to group selling.
OBTAINER: In many markets around the world, the Direct Selling
industry is dominated by female door-to-door sales women.
Would you say this is the case in India as well?
IDSA: Yes, India is dominated by female door-to-door sales
women; but in recent times, the number is reducing. Now the
trend is changing. Men too are getting involved in it, especially
due to the opportunity of having an additional source of income
provided by this sector. This is visible from the growing number
of women force joining the sector, as per the annual survey 64%
of the total 3.9 million workforce is women, thereby emerging as
a means for their self empowerment and social progress.
OBTAINER: If dominated by women, what cultural barriers
have existed and what changes to old traditions have taken place
to accommodate this shift?
IDSA: Cultural and family traditions barred Indian women to step
out of their homes and work. Confined to their homes and having
limited access to exposure to the outside world, they seldom had
the opportunity to work and contribute to the family income. It was
BACKGROUND
Besides raising the family income,
it has opened a whole lot of
opportunities for them to explore
and enter new avenues in their lives.
The international training they got
also encouraged them to be leaders
in their own respect.
considered a social taboo and unheard of. But with the changing
social status, women did step out of their houses but a social stigma
was always attached to this move.
With the arrival of the Direct Selling opportunities in India, a
window of opportunity emerged for these women to work from
the confines of their home and the earning generated, reluctantly
pushed them into the market of Direct Selling. Besides raising
the family income, it has opened a whole lot of opportunities
for them to explore and enter new avenues in their lives. The
international training they got also encouraged them to be leaders
in their own respect.
OBTAINER: The majority of MLM companies have a charity
project or practice social corporate responsibility to uplift the
communities where they operate. Which of these projects from
MLM companies would you say have helped the underprivileged
in India the most?
IDSA: Yes, IDSA member companies are aware and conscious
participants of the society always believe in working for the society
and giving back to them.
Corporate Social responsibility (CSR) has become a worldwide
concept. Firms operating in any sector adhere to this practice
not only for commercial interest but to pay back the society
by taking measures like environment protection, health care,
promoting girl child, sponsoring sport activities, child education,
poverty alleviation, maintenance of public places etc.
firms spent in range of 50 to 12,000 man hours/ quarter on
various CSR activities.
The company specific CSR information can be provided by the
member companies only.
South India is reported to be the most vibrant region followed
by the Western region of the sub-continent. This growth
trend is expected to continue, creating more and more business
opportunities, expanding horizons and changing many
peoples lives as this alternative distribution channel becomes
a norm in the society.
07/2012 OBTAINER WORLDWIDE 119