The direct selling industry, which is facing challenges in the Indian market due to regulatory issues, has witnessed a reduced 4.3% growth in 2013-14 compared to 12.2% in 201213 fiscal, says a report. Gross sales stood at Rs 7,472.2 crore in 201314 while the industry had posted a growth of 12.2% in 2012-13 with sales amounting to Rs 7,164.1 crore, said a report issued by industry chamber PHD in association with the Indian Direct Selling Industry (IDSA).
“The direct selling industry has registered growth rate of about 4.3% in 2013-14 as against the growth rate of 12.2% of 2012-13, 22% of 2011-12 and 24% of 2009-10,” the report said.
Although the growth rate in India is on a decline in the past three fiscal years, on a global basis the direct selling industry has grown over 8% in 2013, it added. The North region accounted for 29% of sales the highest level with an increase of 12.2%, followed by South region with 25%. However, the South region saw a drop in sales.
“Southern region, which was earlier our main base, is not doing well due to lack of clarity on the policy for direct selling. In state like Kerala, direct selling has stopped,” said IDSA Secretary General Chavi Hemanth.
Products related to healthcare/wellness contributed 44%, followed by cosmetic and personal