Chandigarh/New Delhi, Dec 21 (UNI) Amid the ongoing Covid-19 crisis and thwarting adverse impact of the economic lockdown, the Indian Direct Selling Industry registered a year-over-year growth of 4.70 per cent in the first half of FY 2020-21 i.e from 01 April 2020 to September 30, 2020, revealed an industry survey conducted by Indian Direct selling Association (IDSA).
“At a time, when most of the business sectors have faced a downturn, Direct Selling has registered a healthy growth rate by recording significant increase in gross sales in back-to-back quarters of the current fiscal. What is even more heartening is the fact that the industry has witnessed a significantly higher number of new entrants, many of whom are going to pursue Direct Selling as a ‘Full Time’ or ‘Part Time’ opportunity”, said Rini Sanyal, IDSA Chairperson.
The gross Direct Selling sales for the H1 of 2020-21 is estimated to have crossed the mark of Rs 7,500 Crores compared to Rs 7,200 crores in the same period a year before. While the ‘Lockdown Phase’, which was largely in enforcement during the months of Q1, slowed down the growth of the industry however, the high growth rate registered during the ‘Unlock Phase’ which coincided with the months of Q2, accelerated the overall growth of the first half. The Y-O-Y growth of Q1 and Q2 of FY 2020-21 stood at 0.90 per cent and 9.25 per cent respectively. During the same period, close to 53 Lakh new entrants are estimated to have joined the Direct Selling industry as Customers and Direct Sellers.
Owing to an increased awareness about the importance of Immunity, Health and Nutrition, the ‘Wellness’ segment registered the highest Y-O-Y growth of 20.45 per cent during the H1 of 2020-21. While the sales of ‘Cosmetics’ segment was nearly the same, other segments like Homecare, Household Goods etc. registered a combined Y-O-Y growth of 15.17 per cent during the H1 of 2020-21. Wellness, Cosmetics and Homecare are the biggest segments of Direct Selling sales in India and together constitute nearly 90 per cent of the overall sales.
As per the findings of the survey, the emergence of Work from Home concept has also helped
the cause of the industry. People are becoming inclined to have an additional source of self-sustainable income while doing work from home and Direct Selling is emerging as a good source for an additional income. Also, adoption of virtual meeting technologies has enabled the companies and Direct Sellers to organise more per day meetings with the prospective and expand their reach beyond the home city or the region.
