The Indian direct selling industry has recorded sales of US$ 2.47 billion in 2019, reporting a growth of 12.1 per cent, according to a report by World Federation of Direct Selling Associations (WFDSA).
India has improved its rank to the 15th from the earlier 19th a year before, said The Global Direct Selling – 2019 Retail Sales report by Washington-based WFDSA.
Furthermore, India stood at sixth position in terms of the number of direct sellers, providing employment to 57.50 lakh people.
Although, there was decline in the global direct selling industry of 4.3 per cent in sales to US$ 180.47 billion in 2019.
As per the report, with a contribution of 20 per cent of the global direct selling industry, the US is leading in the list with sales of US$ 35.21 billion, though it has registered a marginal de-growth of 0.4 per cent.
China contributed 13 per cent contribution, followed by Korea and Germany with 10 per cent each and 9 per cent by Japan.
This was a positive sign for the industry, Indian Direct Selling Association (IDSA) said it targets to find space in the top five players globally much earlier than the previous estimates of a decade.
According to the association’s statement, India recorded the highest year-on-year growth and CAGR over three years, in top 20 Direct Selling markets around the world.
“India has recorded the highest year on year growth rate of 12.1 per cent and 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 Ms Rini Sanyal said.
According to a latest joint report by IDSA and data insight firm Kantar, the Indian direct selling industry has observed a Compounded Annual Growth Rate (CAGR) of around 16 per cent and grown from Rs 8,308 crore (US$ 1.18 billion) in 2015-16 to Rs 13,080 crore (US$ 1.86 billion) in 2018-19.
The leading segment in the chart of Direct Selling was wellness followed by cosmetics and personal care. The Indian Direct Selling Industry’s contribution to the exchequer stood at around Rs 2,500 crore (US$ 354.66 million) in 2018-19, said the IDSA report.