DIRECT SELLING INDUSTRY OVERVIEW
What is the Contribution of Direct Selling Industry in Indian Economics?
One of the most significant contributions of the direct selling sector is towards employment. The direct selling business model is a self-perpetuating employment generating sector. The model of network marketing encourages the on boarding of new entrepreneurs. There are around 5 million people directly employed by the sector, of which 4 million are only direct selling agents. The percentage of direct sellers in India to the global total is about 4.37 per cent. The potential for growth in India is immense
Direct selling can also fulfil other important purposes in India. A World Bank report highlights the serious problem of more women exiting from the workforce in India. In India, direct sellers are predominantly women, almost 60 percent. If through direct selling, the percentage of direct sellers to the total population can be increased systematically from its current 0.4 percent to even 1 per cent, it will mean the addition of another six million direct sellers, which will result in the addition of at least 3.5million prospective women workers. This sector alone can help in not only creating employment, but also in addressing the gender disparity in the Indian labour force
What is your opinion on the Consumer Protection Act,2019?
Will it benefit the Indian Direct Selling Industry?
The Consumer Protection Act, 2019, offers the opportunity for the development of a proper, comprehensive, and robust direct selling regulatory framework. The setting up of the Central Consumer Protection Authority will also help in laying down basic regulations for consumer grievance redressal. The Authority will also be able to lay down strict guidelines/regulations that prevent misleading advertisements. This way, fly by night operators that operate under the guise of direct selling companies will also be controlled
Has the Indian Direct Selling Industry changed post Consumer Affairs Guidelines?
Please share your viewpoint
While we agree with this, the onus also lies with direct selling entities who have not always been candid in their advertisements. That they are not necessarily accountable to either their association or to the policymaker, has resulted in abuse by both legitimate entities and fly by night operators. Hopefully, with the passing of the Consumer Protection Act, 2019, there will be better standards set for advertisement and greater accountability, which will bring credibility to the sector
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