Direct Selling, also referred to as Network Marking companies or Multilevel Marketing, is a business model that directly sells products or services to consumers – yes, right at their doorsteps. The Direct Selling companies outsources most of their production to Micro, Small, and Medium Enterprises (MSMEs), facilitating their growth. Over the years, the Direct Selling Industry in India has evolved, and the MSMEs have a lot to benefit from collaborating with them.
MSME Sector – The Backbone of Indian Economy
Businesses that have operated for more than a year and whose annual turnover is greater than INR 24 Lakhs are categorized under the MSME sector. The MSME sector contributes significantly to the country’s economic growth. The Indian MSME sector comprises a large network of more than 30 million units. It creates employment for more than 70 million people and manufactures more than 6000 products. The MSMEs that primarily engage in the production, manufacturing, processing, or preservation of goods and commodities, contributes around 45 percent of manufacturing output and 40% of exports. The MSME sector is indeed the backbone of the country.
Direct Selling – A Revolution in Retail
The Direct Selling Industry has revolutionized retail in India, where the consumers are offered new and exciting ways to shop and indulge. The Direct Selling Industry is supporting India’s bright vision – Aatmanirbhar Bharat (Self-reliant India). The Government of India has boosted the sector via its several initiatives like Make in India, Vocal for Local, Women Empowerment, Startup India, and Skill India. The Government has also stepped in to address the concerns of the stakeholders in the industry – particularly the company representatives, also known as Sales Representatives or Independent Representatives, by drafting regulations that safeguard their interests.
Collaboration of MSMEs with Direct Selling Companies: A Win-Win Situation
The Direct Selling Industry constantly strives to manufacture products domestically by promoting Micro, Small and Medium Enterprises (MSMEs) in India. The network marketing companies contract and collaborate with MSMEs as vendors for their manufacturing needs. It promotes the growth of the MSME sector, facilitating the transfer of technology and manufacturing to their MSME vendor partners. The Make in India initiative of the government is aimed at propelling the revival of the manufacturing industry, and the Direct Selling Industry perfectly fits this vision – it contributes to this goal by enhancing employee skills, empowering women, and promoting MSME companies.
The Direct-to-Consumer Approach – Enabling MSMEs to Reach Consumers Directly
The collaboration of the MSMEs with the Direct Selling companies and the digital-first culture adopted by the Direct Sellers into their business DNA has enabled them to reach and serve their customers. And this has been particularly visible and vital during the pandemic where consumers prioritize safety over anything else. The MSME sector is a vital section of the business community and an engine of growth for the country supporting millions with direct and indirect livelihoods. The MSME-MLM partnership coupled with the active participation of the tech-savvy consumers has been instrumental in countering the menace unleashed by the deadly pandemic.
Do You Want to Work from Home? Direct Selling Can be Your Best Option
The Covid-19 pandemic induced an economic and employment crisis that rendered many jobless. At a time when most industries struggled to survive, the Network Marketing Industry thrived and grew further. Apart from making most of the opportunity, the industry provided livelihoods to millions and showed them how to become entrepreneurs and attain financial freedom. The frequent lockdowns and the several restrictions introduced by the government to counter the virus compelled many companies to ask their workforce to work from their homes which has now become the norm.
But all companies do not support the work-from-home culture, and if you are looking at this option, then look no further. Direct Selling is another addition to the already existing many options and the best one to earn from the comforts of your home. In these testing times, the Direct Selling Industry is the fastest growing one. A career in this industry can be your best option to become self-reliant and financially independent.
