Direct selling industry growth slips to 4.4%

NEW DELHI: Growth of direct sellers such as Amway, Tupperware and Herbalife slowed down to 4.4% in 2015-16, compared to 6.5% in the previous financial year, with consumers either scaling back spends or downtrading on consumption. These companies, which sell personal care, cosmetics, grooming, foods and household care products directly to consumers, grossed consolidated sales of Rs 8,308 crore in 2015-16, industry association Indian Direct Selling Association (IDSA) said in its annual survey report for the year. Lifestyle, wellness and healthcare products contributed to 43% of gross sales followed by beauty, cosmetics and personal care products.

The report forecasted growth of Rs 25,826 crore by 2024-25, expected to ride on supportive policy framework, an expanding consumer base, widening acceptance and awareness about direct selling.

The report added that over the last eight years, the industry has grown 12.13%. Department of Consumer Affairs additional secretary Madhulika Sukul said, “The introduction of direct selling guidelines has established a framework within which direct selling entities are to function. This is expected to strengthen the industry.”