India’s Hindustan Unilever (HUL) has changed the operating model of its direct-selling business, Hindustan Unilever Network, paving the way for a likely debut in e-commerce.
“The Hindustan Unilever Network business model has transitioned from physical servicing to an online ordering and fulfillment model,” an HUL spokesperson said.
Consumers can buy the Aviance and Lever Ayush range of health and beauty products through HUL network consultants, who will operate only online now and will no longer have any physical offices. HUL did not provide additional details.
The maker of Dove soap and Surf detergent, which launched the direct-selling division in 2003 to offer high-value home and beauty-care products, attributed the change in model to “optimising operating costs and making the business more competitive.”
Analysts said HUL may be testing the waters in the ecommerce space and could
Tag Archive for India
Hot Business News Today
India’s Chamber of Commerce Seeks MLM Legislation
by Ramya Chandrasekaran • • 0 Comments
Sensing the need to regularise direct selling, the Federation of Indian Chamber of Commerce and Industry (FICCI) has urged the government to provide clarity. Shilpa Gupta, Head – Retail, FMCG, Luxury Gems & Jewellery, Direct Selling, FICCI, shares her views about the potential of this multi-level marketing model and the steps to regularise it.
How do you assess Direct Selling in India?
Direct selling is not new to India. Around the year 1995, many companies started with it; Amway was one of them. But the misfortune is that we only understand direct selling on the basis of one or two companies. In fact, there are so many companies in India today that are following this business model. In India, Direct Selling is a very old model of sales. For example, a cycle rickshaw peddler
Hot Business News Today
USD 1.1 billion Indian Direct Selling Industry Affected by Lack of Laws
by Ramya Chandrasekaran • • 0 Comments
Often mistaken for Ponzi schemes, the Rs,7200 crore (approximately USD 1.1 billion) direct selling industry has taken a blow in the absence of clear laws.
Gurgaon resident Harpreet Kaur, 49, completed her MPhil in psychology from Delhi University in 1988. But marriage came in the way before she could begin her professional career. She spent years as a homemaker before her brother-in-law introduced her to Amway’s direct selling business in 1998. Today, she and her husband boast of hundreds of distributors in their network, selling products worth over Rs.1 lakh a month. “There was a time when all I did was wait for my husband, who ran an electronics unit in Delhi, to return home. Today, both of us are entrepreneurs, and have flexible work hours,” says Kaur.
There are six million ‘direct sellers’
Hot Business News Today
Herbalife Partners with Global Health Strategies Institute To Improve Children’s Nutrition In India
by Tina Williams • • 0 Comments
Herbalife (HLF), a global nutrition company, today announced a one-year partnership with Global Health Strategies Institute (GHSI), to help improve the nutrition of more than 10,000 children ages 5-12 in India, in line with the government’s Mid-Day Meal Scheme (MDM) and School Health Programs (SHP).
As part of its corporate social responsibility efforts, Herbalife will work with GHSI and global vitamin supplier DSM, to help provide access to good nutrition to children in India, a country with a history of malnourished, underweight children. The government-run MDMS and SHP programs are designed to improve the nutritional needs of children by providing food supplemented with adequate quantities of iron, folic acid and vitamin A. However, more fortified foods with essential micronutrients are needed.
Anjali Nayyar, senior vice president, Global Health Strategies Institute, said, “Addressing the nutritional needs
Hot Business News Today
India Working Towards New Legislation To Help Direct-Selling Industry
by Tina Williams • • 0 Comments
For those that have been following international direct-selling news will be happy to hear that India is finally putting some measures into place to progress the direct-selling industry in their country, which has been sorely lacking the support. Although a small baby step toward the results needed, it is a step in the right direction.
Welcoming the formation of an inter ministerial committee to look into their issues, direct sellers have asked the government to frame a separate regulation after consulting all stakeholders in a time-bound manner for the sector.
The India Direct Selling Association (IDSA), which falls under the Prize Chits & Money Circulation Schemes (PCMCS) (Banning) Act, has been asking for a separate legislation for some time.
“We welcome the much awaited action taken by the government. We hope the government will draft an inclusive legislation in consultation with the industry stakeholders. We expect the government to give out time-bound legislation,” IDSA Secretary General Chavi Hemanth said.
Last week, MoS Consumer Affairs, Food and Public Distribution Raosaheb Patil Danve has informed Parliament that the government has set up an inter ministerial committee to consider separate legislation for direct selling/ multi-level marketing companies.
“At present, in the absence of any separate regulatory framework business models like direct selling/
Hot Business News Today
Amway To Make India Exporting Hub
by Tina Williams • • 0 Comments
Times of India reports:
Direct selling major Amway plans to make India an export hub for its operations in Middle East and South Asian countries, even as its business growth here has slowed down due to lack of clarity for applicable regulations.
The company also said there is an urgent need for detailed regulations to distinguish genuine direct sellers from sham players and to give a sense of legitimacy to the industry.
“We need more clarity in the regulations so that the growth level is up. Few years ago, it had a very strong double digit growth which has slowed down and there is a need for a better understanding of legitimate direct selling company,” Amway managing director & CEO William S Pinckney told PTI.
Amway, which is setting up Rs 600 crore unit at Nilakottai in Tamil Nadu is also looking for further expansion along with additional plant as the company is mulling to make India a hub for its Middle East and neighbouring countries as Sri Lanka, Bangladesh etc.
“We are looking outside Indian markets, like Sri Lanka, Bangladesh, UAE, Middle East. We think and believe that India can be an export hub to those market. That could cause us more quickly for look for more investments
Hot Business News Today
ForeverGreen Worldwide Corporation Accelerates Business In India
by Nicole Dunkley • • 0 Comments
ForeverGreen Worldwide Corporation, a leading direct marketing company and provider of health-centered products, announced a number of ForeverGreen’s management team members traveled to India in November to meet with top leaders and accelerate business in the region. Among ForeverGreen’s leadership were Jack Eldridge, CFO; Joe Jensen, Vice President of Sales; and Bob Mower Steed, President Asia Pacific.
On the first day of the visit, ForeverGreen hosted a fly-in event at the ForeverGreen India’s office in Ahmedbad. Over 350 members attended as well as a number of high profile leaders from other direct marketing companies.
The next few days were dedicated to the Nirankari Wellness Mission event in India’s capital, Delhi. The charitable event is a bi-annual gathering where close to two million people can access free medical care, thousands can eat at an open-air soup kitchen and all can gather to hear Baba Ji, the spiritual leader of one of the largest sects in India.
“We partnered with Life Chiropractic College, The International Association of Chiropractors and the Indian Association of Chiropractors to provide pain relief to the masses through chiropractic adjustments and the application of PowerStrips by chiropractors to several thousand patients over the three days of treatment at the event,” said
Hot Business News Today
Direct Selling Sales In India Up Just 4.3%, Policy Uncertainty Blamed
by Nicole Dunkley • • 0 Comments
The Indian direct selling industry grew 4.3 per cent in 2013-14 and achieved sales of Rs 7,472$ crore, a sharp decline from previous fiscals, according to the industry’s annual survey conducted by the Indian Direct Selling Association (IDSA) and the PHD Chamber of Commerce.
Sales grew at 12.2 per cent (Rs 7,164$ crore) in 2012-13 and 22 per cent (Rs 6,385$ crore) the year before. The survey estimates industry turnover at about Rs 24,000$ crore by 2019-20.
“The dip in sales is on account of lack of policy. There is no clarity and the industry faces much uncertainty. That’s what we’ve been asking the Government for over the last six or seven years,” said Chavi Hemanth, Secretary General, IDSA.
Reports indicate that the Finance Ministry is looking to make changes to the Prize Chits and Money Circulation Scheme (PCMCS) (Banning) Act of 1978 to prevent the spread of ponzi schemes. However, direct selling companies have often come under the scanner of the Act, evidenced by the arrest of Amway CEO William Pinckney and two company directors in Kerala last year.
“The Ministry of Consumer Affairs (MoCA) has also come forward to support the industry and frame a separate law. What shape it will take
Hot Business News Today
Direct Selling Industry Growth In India Is Slowing
by Tina Williams • • 0 Comments
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
Hot Business News Today
Top Actress Huma Qureshi To Endorse Oriflame India’s Colour Cosmetics
by Ted Nuyten • • 0 Comments
Actress Huma Qureshi has been signed as the ambassador of colour cosmetics section of direct selling brand Oriflame India.
The ‘Gangs of Wasseypur’ star, dressed in a black gown with curled hair and red lips, sashayed down the ramp as she was announced as the face of the colour cosmetics section of the brand here Wednesday.
She also launched the brand’s new range called ‘The One’, which comprises Oriflame The One Everyday Beauty, Oriflame The One Long Wear and Oriflame The One High Impact.
“It’s beauty with responsibility. The company works with women and empowers them so that appealed to me,” Huma said about the Sweden-based company here.
Asked what beauty product she is addicted to, she said: “Mascara. I can’t leave home without it. It makes my lashes look better.”
Niklas Frisk, vice president and head of South Asia and managing director, Oriflame India said that the actress “personifies the strength and values of a contemporary Indian woman”.
About Oriflame:
Oriflame is a leading beauty company selling direct. We are present in more than 60 countries, of which we are the market leader in more than half. Oriflame has its origin in Sweden with corporate offices in Switzerland. We offer a wide range of high-quality beauty