IDSA unveils Annual Survey Report FY 2012-13

12122013

Direct Selling Industry continues to aim high despite hurdles reaching at Rs. 7,164 crores

New Delhi, 12 December 2013:

Key Statistics

· Direct Selling Industry grew by 12.2% in 2012-13

· Industry Market Size reached at Rs. 7,164 crores for 2012-13

· Expected to attain Rs. 34,000 crores by 2019-20

· Average turnover of Northern region reaches at 27% in 2012-13 from 20%in 2011-12

· In Southern region, the turnover has declined to 30% in 2012-13 from 38% in 2011-12

· Growth of total distributor base reported 18.9% growth in 2012-13 over 2011-12

· Total distributor base reaches approx. 60 Lakhs

· Wellness continues to contribute highest to the sales revenue at 47%

· Fiscal contribution touches at about Rs. 987 crores

· Percentage of self-employed distributors base: Men-40.6% & Women-59.4% in 2012-13

Indian Direct Selling Association (IDSA) in association with PHD Chamber of Commerce and Industry released Annual Survey Report 2012-13 on the Indian Direct Selling Industry today in New Delhi.

The survey report was unveiled by Ms Chavi Hemanth, Secretary General, IDSA ; Mr. Amarnath Sengupta, Chairman, IDSA ; Mr. Saurabh Sanyal, Executive Director, PHD Chamber and Dr. S.P. Sharma, Chief Economist, PHD Chamber.

Chavi Hemanth, Secretary General, IDSA stated $B!H(BIDSA in collaboration with PHD Chamber as an on$B!>(Bgoing process has benchmarked monitoring of the Direct Selling sector in India. These statistics are one of the imperatives from WFDSA (World Federation of Direct Selling Association)..$B!I(BFor more information on WFDSA, please refer http://www.wfdsa.org

She further said, $B!H(BThe industry continuous to develop and has shown growth of 12% during 2012-13, expanding from Rs. 6,385 crores in 2011-12 to Rs. 7,164 crores in 2012-13. I am confident that we will continue to grow at an annual average of more than 20% for next 3 years. On account of regulatory hurdles specifically in the State of Kerala, the Southern region$B!G(Bs share in sales revenue has reduced to 30% in 2012-13 from 38% in 2011-12.$B!I(B

Mr. Saurabh Sanyal, Executive Director, PHD Chamber said that $B!H(BDirect Selling Industry is a rapidly emerging and boosting self employment opportunities, encouraging women empowerment and it holds immense importance to the overall economic system. However, presently the country is faced with several challenges to its growth. Notable among them are high inflation, stagnating manufacturing output, high fiscal deficit, widening current account deficit, volatility in the exchange rate scenario, a sluggish investment environment, poor availability of skilled manpower, slow employment generation and inadequate poverty alleviation which has impacted directly or indirectly the Direct Selling Sector. However, the industry is aiming high but there are several regulatory challenges which affect the growth of industry.$B!I(B

Mr. Amarnath Sengupta, Chairman of IDSA said, $B!H(BDirect Selling companies have been active towards the growth of the Indian economy by contribution to the exchequer and generation of self employment opportunities. The total tax paid by the member company$B!G(Bs amounts to Rs. 987 crore in 2012-13 as compared to Rs. 821 crores in 2011-12. With a growth of 20% in 2012-13 over 2011-12. For self employment opportunities, approx 60 Lakhs Distributors in India are associated with Direct selling companies in India.$B!I(B

He further stated that $B!H(BOut of 60 Lakhs Distributors, Women constitute 60% of total sales force. However the share of men has increased from 37.5% in 2011-12 to 40.6% in 2012-13. The analysis of the figures done to gauge the growing popularity of Menfolk in Direct Selling revealed that they are looking at Direct Selling Industry to provide them with a supplementary income.$B!I(B

Dr. S.P.Sharma, Chief Economist, PHD Chamber said $B!H(BThe Direct Selling Industry has been emerging as an alternative sales distribution channel in Indian market over the years and the growth prospects of the industry are bright which is set to take off as driven by strong consumer base, rising urbanisation, growing middle class population and expanding markets going forward. Though the industry has grown by 12% in the current FY2012-13 but the growth prospects of the industry is estimated to increase five fold by 2019-20 reaching up to Rs. 34,000 crores from Rs. 7,164 crores in 2012-13. Overall the industry is slated to grow at an average of more than 20% in the next three years.$B!I(B

Mr. Amarnath Sengupta, Chairman, IDSA has reportedly said that the government needs to strengthen the regulatory and policy framework for Direct Selling Industry which should completely weed out the fraudulent financial pyramid schemes out of the market.

Ms. Chavi Hemanth, Secretary General, IDSA focused on the key request to the Government for a separate legislation which should focus on money back guarantee, buy back guarantee and product return policies. She stated that once we have a clear policy in place, I can assure that the strength of Direct Selling Companies will manifold to an astounding turnover.

The forum was concluded by Ms. Chavi Hemanth, Secretary General and she expressed her delight with the association between PHD Chamber and IDSA.

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