Direct Selling Industry – Promoting Women Empowerment

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It is generally assumed that women differ from men in social positions – differing asymmetrically in power relations. Women Empowerment is an initiative of the Indian Government that envisions increasing women’s access to strategic life choices and opportunities, allowing them to realize their potential and capabilities. The Indian Direct Selling Industry, also interchangeably referred to as Network Marketing or Multilevel Marketing (MLM) Industry, has been at the forefront of the Government’s vision. Of the millions of people provided with entrepreneurship opportunities by the Network Marketing Industry, more than half account for women. This write-up discusses how Direct Selling Industry is promoting women empowerment in India.

Challenges Faced by Women in India

When it is providing gender equality and creating jobs for women in India, it is quite a challenging proposition. And the challenge becomes even steeper when women start leaving the workforce arising out of reasons like marriage, religious customs, childcare needs, and other concerns related to safety & security at the workplace. However, an encouraging sign for the Direct Selling Industry lies in the Indian Direct Selling Association (IDSA) survey that says that 50 percent of the workforce employed by the industry are women, and 31 percent of them have joined the Direct Selling Industry after giving up their full-time jobs.

Government Boost to Direct Selling Industry

The Government of India initiated several steps to boost the Direct Selling Industry. The Make in India, Skill India, Startup India, Vocal for Local, and Women Empowerment are some of the initiatives that have helped the Middle, Small, and Micro Enterprise (MSME) sector. Direct Selling is a business model where the Direct Selling company makes a profit by buying products from the manufacturer and selling it directly to the consumer without any intermediaries in between. The industry is expected to grow at a rapid rate of 12.1 percent going forward. As per a report in the news website – Financial Express, in FY2018-19, there were 5.7 million direct sellers, which is estimated to grow exponentially to 18.1 million by 2025. The Direct Selling Industry deals in food, healthcare, cosmetics, jewellery, insurance, housewares, and other utilities. As part of the Digital India initiative where learning and innovation are its cornerstones, the Direct Selling Industry is moving towards a potential digital avatar – eCommerce and online social selling.

Direct Selling – Enabling Women to Make Choices

When defining women empowerment, the term needs to be well articulated and fully appreciated.  The World Bank, which is a vital financial and technical source of assisting the developing countries, defines empowerment as increasing the capacity of individuals to enable them to make choices and convert those choices into desired actions and results. Some of the common characteristics of empowerment are made possible for women via Direct Selling. Direct Selling companies are opening opportunities for women and increasing their capacity to make choices that help them to achieve their desired outcomes. Indeed, the Direct Selling Industry seems to be the most preferred sector by women! It offers them a perfect work-life balance along with the chance to succeed as an entrepreneur.

Direct Selling – Contributing Phenomenally to Self-Employment

The Direct Selling Industry is enabling MSMEs in the ease of doing their business. The direct Selling industry contributes significantly towards generating self-employment in the country, especially when the Covid-19 pandemic induced an economic recession and employment crisis. The Direct Selling Industry has remained unaffected during the pandemic. Grown manifold – from selling at home parties to selling online via social media and other channels. For many women in the Direct Selling industry, the sense of empowerment has not happened suddenly. It has been a fruitful journey where women are experiencing interaction with their customers to becoming consultants and ultimately entrepreneurs – able to support their families and live their dreams.

Direct Selling Companies: Empowering Women to become Financially Secure

Direct Selling has been one of the oldest and traditional forms of retail. Unlike the excessive operational and infrastructural costs involved in any other traditional business, the Direct Selling business is a viable choice for women from middle-and-low-income groups. Today, Direct Selling companies provide women with the opportunity to become entrepreneurs and enable them to be self-reliant, confident, and financially secure.