An emerging trend in the gig economy, the Direct Selling industry is providing livelihood to millions of people dealing with the impact of Covid-19 pandemic.

While the whole world is grappling with the impact of Covid-19, there arises an unprecedented circumstance where most sectors are witnessing massive layoffs due to the declining sales and dwindling revenues

Owing to this, many people are now opting towards alternate employments, which comes with zero or meager initial investment, and provides them an opportunity to be their own boss. Here is an opportunity to give a fresh look at the world of Direct Selling - an emerging trend in the gig economy. With the rise of digitalisation, the direct selling industry has proved to be a boon for many millennials, young emerging entrepreneurs, students, and naive graduates. Considering youth who are digital savvy and appreciate mentorship, looks to be agile in their workspaces. While a lot of envoys of this generation prefer full-time jobs, many of them crush time for freelancing. In all probability, Direct Selling is a cost-effective product and a business opportunity that offers an opportunity to earn a fee on sale model along with full-time income. Simultaneously, it is also providing livelihood to millions of people dealing with the impact of Covid-19 pandemic. Direct Selling has been in practice since the 20th century, and has been providing a non-traditional successful income-generating model to earn a living. Besides entrepreneurs, the industry also bestows great benefits to consumers serving as an alternative to offline retail outlets.

The World Federation of Direct Selling Associations represents the global direct selling industry in more than 170 countries.

In India, more than 5 million people are involved in direct selling of which 60 percent of them are women. India has witnessed a total number of direct sellers rise to 5.7 million in 2018-19 from 5.1 million in 2016-17, equivalent to the addition of 800 people every day. Quantified by the ASSOCHAM report, Direct Selling industry in India is expected to grow at a compound annual growth rate (CAGR) of about 4.8 percent to reach Rs 15,930 crore by 2021. This mounting number can be attributed to the suppleness and creative nature of the direct selling industry.

NEW DELHI: The Indian direct selling industry has recorded sales of USD 2.47 billion in 2019, reporting a growth of 12.1 per cent, a report by World Federation of Direct Selling Associations (WFDSA) said.This has helped the direct selling industry improve its ranking to the 15th from the earlier 19th a year before, said The Global Direct Selling - 2019 Retail Sales report by Washington-based WFDSA.

Moreover, in terms of the number of direct sellers, India has been ranked at sixth position, proving employment to 57.50 lakh people.

However, the global direct selling industry has reported an overall decline of 4.3 per cent in sales to

According to the report, the US is leading in the list contributing 20 per cent of the global direct selling industry with sales of USD 35.21 billion, though it has registered a marginal de-growth of 0.4 per cent.

It is followed by China with 13 per cent contribution, Korea and Germany with 10 per cent each and 9 per cent by Japan.

Terming it as a good sign for the industry, Indian Direct Selling Association (IDSA) said it now hopes to find space in the top five players globally much earlier than the previous estimates of a decade.

India recorded the highest year-on-year growth and CAGR over three years, in top 20 Direct Selling markets around the world, the association said in a statement.

"India has recorded the highest year on year growth rate of 12.1 per cent and the the highest CAGR of 16.3 per cent over the period of last three years, amongst the top 20 direct selling markets across the globe," IDSA Chairperson Rini Sanyal said.

According to a latest joint report by IDSA and data insight firm Kantar, the Indian direct selling industry has witnessed a Compounded Annual Growth Rate (CAGR) of approximately 16 per cent and grown from Rs 8,308 crore in 2015-16 to Rs Rs 13,080 crore in 2018-19.

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Direct Selling: A Boon In The Pandemic Era

More than 50% of our direct sellers are from tier 2-3 regions who use their smart phones to reach out to prospective consumers and direct sellers through video conferencing and closing the business transactions through the robust mobile app.

The COVID-19 pandemic has led to multi-faceted challenges such as breaking the virus chain, containing the potential spread of the virus, rising unemployment, and layoffs, the decline in industrial growth, and changing consumer demands. As many as 122 million Indians lost their jobs in April 2020, and India hit the highest rate of unemployment of 27.1 percent during April and May 2020, according to the Centre for Monitoring the Indian Economy. Despite the recovery of some percentage noticed in June 2020, there are still many industries such as Leisure and hospitality, Educational Services, Real Estate & Construction, Entertainment, and recreation etc. with no guaranteed future for their employees. That said, the direct selling industry is the only industry in India to have successfully emerged as the dark horse, remaining largely unaffected by the pandemic and its impact on the business.

While there are multiple factors responsible for this, a paradigm transition from offline to online sales and amplified use of technology in this work-from-home era have been the biggest contributors. The emphasis on maintaining safety and minimum human intervention has prompted more and more consumers to shift to online platforms for purchasing a product, thereby increasing sales of the direct selling companies. Furthermore, the Honourable Prime Minister’s mantra of becoming Atmanirbhar (self-reliant) by being vocal for local has further boosted local manufacturing and it has had positive rub off on homegrown companies direct selling companies in India.

Some of the key factors that have made direct selling a successful selling module include: The entire business of direct selling, for the companies who had vision to invest in digital assets and technology, can be conducted via a screen without physical intervention. In times such as the coronavirus, this is the best option available for anyone looking to be a direct seller as the business is completely virtual in nature.

The migrant workers’ plight is unmatchable at this moment. With thousands who have returned to their native places or those who are not confident to go back to the cities again to start working again, direct selling has become a viable option. Associating themselves with a direct selling company can provide these migrant workers with income in any corner of India, as they can work from remote locations. More than 50% of our direct sellers are from tier 2-3 regions who use their smart phones to reach out to prospective consumers and direct sellers through video conferencing and closing the business transactions through the robust mobile app.

Direct selling can be a blessing at a time where a steady income is uncertain. It also has nearly zero capital investment involved and can be considered as a secondary source of income at a time wherein there are layoffs and increasing unemployment. Also, implementing a 360-degree online ecosystem can bring about absolute transparency in the company affairs, leaving little scope for complaints or errors.

In the current scheme of things, it is imperative for direct selling companies to formulate an action plan to ensure smooth flow of the business. Investments in technology to bring in ultimate convenience in business for distributors and user experience for consumers, creating awareness on the usage of products via online trainings and webinars, updating the applications used for direct selling in a timely manner and making use of digital touch-points such as social media and advertising to promote the products and its usage are some of the parameters that can help this industry to continue growing in these uncertain times.

In the end, it will be fair to say that the direct selling industry has proven time and time again that it can hold strong and survive even more turbulent economic cycles. The current times are no different and the legitimate industry players, operating according to the government-defined guidelines, offering negligible or zero investment, time & space flexibility and the simplified work process blessed by technological advancements are an ultimate ray of hope for millions of Indians and also for the Indian economy today.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

Indian Direct Selling Industry to Touch Rs 64,500 Crore by 2025

Direct Selling industry in India, which currently ranks No. 15, globally, is expected to grow at a Compounded Annual Growth Rate (CAGR) of about 4.8 percent to reach Rs 15,930 crore by 2021.

The year 2020 has truly been a year of uncertainties. For many, it has meant the loss of loved ones; for some others, their livelihood. However, the news of vaccines for COVID-19 coming in 2021 has certainly brought a great deal of hope. Some sectors are already witnessing the green shoots of recovery. Direct selling is one such sector that continues to promise a bright future despite the current obstacles and challenges.

As per industry estimates, the Direct Selling industry in India, which currently ranks No. 15, globally, is expected to grow at a Compounded Annual Growth Rate (CAGR) of about 4.8 percent to reach Rs 15,930 crore by 2021. This proves that the Direct Selling Industry is flourishing and illustrates its potential with the continued rate of growth – increasing at an impressive rate of 12.1 percent Y-o-Y.

Another interesting trend that is noticeable is that the sector has been instrumental in employment generation for nearly 122 million Indians who lost their jobs this due to the pandemic.

Gautam Bali, Managing Director, Vestige Marketing Pvt Ltd., said, “Direct Selling is one of the fastest-growing sectors in India today. Despite these challenging times, the sector has witnessed spectacular growth in the last three quarters. At Vestige, we have provided an alternative career opportunity to millions during the pandemic period. We are looking forward to 2021 and we hope to continue to be a key player in the Direct Selling Industry’s rapid growth by empowering people”.

Initiatives like ‘Vocal for Local’ and ‘Aatmanirbhar Bharat’ encouraged Indians to explore the option of buying and selling locally made products via the direct selling route, which entails low investments and high returns. This not only boosted local manufacturing but also established a sense of ownership as well as determination amongst budding entrepreneurs to succeed. In India, the Direct Selling industry has provided additional income opportunities to its people and has significantly promoted micro-entrepreneurship. In FY 2018-19, there were 5.7 million direct sellers. These numbers are projected to grow exponentially to 18.1 million by 2025.

The sector has also empowered women in a significant way right since its inception. There are almost 2.1 million women today who are at the heart of this industry and have gone on to become successful entrepreneurs.