Around 60% of direct selling companies reported negative growth in FY22: IDSA

ENA Sectors 2023-03-31 14:19:04 New Delhi, Mar 31 (KNN) Nearly 60 per cent of the direct selling companies reported negative growth due to multiple challenges faced by them during the pandemic, said an Annual Survey Report released by the industry body Indian Direct Selling Association (IDSA). The direct selling industry of India witnessed a decline of 5.3 per cent to Rs 19,020 crore in FY22,the report said. <a href="https://bit.ly/3B9mZSj"><img alt="FOLLOW US on GOOGLE NEWS" src="https://knnindia.co.in//uploads/gallery/GoogleNews.jpg" style="border-style:solid; border-width:1px; height:95px; margin:1px; width:299px" /></a> India has a vast untapped market potential for the industry and the rising middle class, estimated to comprise of more than 25 crore people has higher disposable income and is more receptive to purchasing premium products, It said. The report pointed out that the technology-driven offerings, especially in the wellness and personal care space, have been witnessing great traction among consumers. In FY22, the industry has also added more numbers of direct sellers, taking the total count to around 84 lakhs, registering a growth of 6 per cent from 79 lakh over the previous year, the report added. According to IDSA, there has been a steady growth in the number of Active Direct Sellers in India over the last four years. However, it also said that there is a change in direct seller's profiles as the person who had engaged with direct selling companies during the pandemic period for additional income have started focusing on their core job and the focus on direct selling seems to have reduced. As per the survey, we have noticed a reduction in direct sellers considering direct selling as part of their extra income from 41 per cent in FY21 to 21 per cent in FY22, it said. Moreover, products like sanitisers, masks and other hygiene, and sanitising products saw a Degrowth post-pandemic. Companies handling these products have taken a hit in this category, it added. IDSA Chairman Rajat Banerji said India has been seen as a market that holds tremendous potential for direct selling, reflected in the consistent and sustained growth of a CAGR of 13 per cent over the past half a decade. The Direct Selling industry has been the one major industry vertical that has consistently provided sustainable self-employment and micro-entrepreneurship and start-up opportunities to nearly 84 lakh Indians, he said. According to the report, the top 10 states cumulatively accounted for 70 per cent of the industry turnover. Maharashtra with 12 per cent was the leading contributor, followed by West Bengal and Uttar Pradesh with 10 per cent each. Bihar contributed 6 per cent, while Karnataka and Odisha contributed 5 per cent each. (KNN Bureau) 32818 https://knnindia.co.in/news/newsdetails/sectors/around-60-of-direct-selling-companies-reported-negative-growth-in-fy22-idsa 2023-03-31 14:19:04 knnindia.co.in Around 60% of direct selling companies reported negative growth in FY22: IDSA