Direct Selling: Questions you need to ask

  • What are other challenges it would face and what are the possible solutions?

In India, direct selling is growing at a fast pace. Total sales through direct selling route in 2002 was Rs.1,723.7 crore. India was the fastest growing market in 2000 in terms of revenues from direct selling, registering a 54% yo yo growth. 90% of goods sold by the direct sellers in India are sourced from goods manufactured within the country.

  • How should the company frame its strategies, to account for the gaping demographic differences present in the Indian market?

Most of the Direct Selling companies operating in India today are in the field of cosmetics, personal products, household products, cookware and health food. Amway is the largest player in India with annual sales exceeding Rs 5 billion.

  • How should a new direct-selling company compete with an established FMCG major, such as HLL, if it also adopts direct-selling strategies?

Other major players are Avon Beauty Products (I) Pvt Ltd, Oriflame India Pvt Ltd, Tupperware India Pvt Ltd, Lotus Learning Pvt Ltd, LB Publishers and Distributors Pvt Ltd and DK Family Learning. The Indian Direct Selling Association is an association of companies engaged in the business of direct selling in India. All major players in India are affiliated to IDSA.

  • What are the strategies that should be followed by a direct-selling company to create a strong brand name?

Mass-market penetration is now catching up within the Rs 1,800-crore direct selling industry as well, and direct selling majors such as Amway, Tupperware,and Avon now seem to be following the path charted by FMCG giants such as Hindustan Lever, Marico, Britannia, Nestle, Dabur, Godrej and Tata Tea.

  • What are the new fields into which direct-selling companies could venture?