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Advertisig Express Magazine:
Direct Selling : Gaining Big Momentum
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The Indian direct selling industry is growing very rapidly because of the changing lifestyle patterns and demand for products such as health, personal care, insurance, etc., which necessitate personal contact with the consumers. `Direct Selling' has advantages for all, be it consumers, manufacturers or sales persons, thereby eliminating other intermediaries in the distribution network and paving the way for faster delivery, low-cost, personal touch and even money-back guarantees. Several companies, including Amway India, Tupperware, Hindustan Unilever Limited (HUL), Nature Essence, Shahnaz Herbals and TV 18 Home Shopping Network, have big plans to leverage on their direct selling business. However, in the absence of any industry status to direct selling and separate regulation for it, it suffers from so-called `quick buck'/pyramid schemes resulting in lack of trust from people in direct selling. The Indian Direct Selling Association (IDSA) is in talks with the government for a separate regulation governing the direct selling industry. Meanwhile, with large chunks of population, Information and Communication Technology (ICT) revolution, satellite television and growing awareness among public, one can hope for a long innings from the direct selling industry in India.

 
 
 

Direct selling is fast catching up in India. As per IDSA estimates, the Indian direct selling industry may breach Rs. 3,150-cr mark by this year-end. "With a population of one billion, it will not be difficult to say that the direct selling industry of the country will be somewhere between Rs. 10,000 cr to Rs. 15,000 cr by 2012", says P Sanker, Chairman of IDSA. This spurt in direct selling may be attributed to various segments like health, wellness, nutrition, personal care, education as well as insurance where personal contact and convincing the customer through face-to-face interaction is instrumental for better sales and revenues.

Researches have shown that direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing of products and services directly to consumers either on a one-to-one basis or through group demonstration plans to all prospective customers. It does allure customers because of personal demonstration and explanation of products, home delivery and, in many cases, money-back guarantees. The IDSA conducted a Direct Selling Public Attitude Tracking Survey through Burke Marketing Research in 2000, which assessed public attitude towards the direct selling industry.

 
 
 

Advertising Express Magazine, Indian Direct Selling Industry, Indian Direct Selling Association, IDSA, Fast Moving Consumer Goods, FMCGs, TV18 Home Shopping Network Pvt. Ltd., Amway India, Multinational Companies, MNCs, Global economy, Hindustan Unilever Limited, HUL.