The term Multi-level Marketing (MLM) in India broadly refers to the marketing that occurs via a distributor network which could be either a direct selling scheme or a pyramid scheme. The advent of the Multilevel Marketing business model in 1995 saw the Indian market flooded with MLM business opportunities. People worldwide want to make money conveniently and easily, and that is what the Network Marketing business plan promises. This article discusses the future of Direct Selling in India and whether it really holds what it promises.
Indian Direct Selling / Network Marketing Industry
As it is commonly referred to, Network Marketing, or the Direct Selling industry, involves selling products at multi-levels by forming an extensive people network in promoting business. It is one of the oldest business types. The MLM business model is operational in more than a hundred countries, and its market size is massive. Back here in India, too, the Direct Selling business seems to be yielding benefits. As per an Assocham report, the market size in India is likely to touch around INR 159.3 billion by the end of the year 2021. It is also interesting to note that the average sale per individual is rising, around USD 300 – annually.
Though continuous growth has been seen in India over the years, the Network Marketing or the MLM business is yet to catch up with the world’s top markets – the US, Korea, and China. However, the launch of various government initiatives like Digital India, Make in India, and Skill India is bound to support the growth of the Network Marketing business in India.
Future of Direct Selling Industry in India is Bright
With several government initiatives, guidelines, and policies in place, along with the Network Marketing industry turnover in India expected to reach dizzy heights of INR 645 billion by 2025, the future looks bright. As a result, the Direct Selling business can influence the social and economic fabric of India.
- India has a massive customer base. The Network Marketing business offer opportunities for individuals to earn a passive income along with promoting micro-entrepreneurship.
- Network Marketing business is a great way to promote women empowerment and lay the foundation for a strong future for women in balancing their time and household work more effectively.
- Direct selling companies, when launching new products, depend on SMEs to enhance the product features. It is an opportunity for SMEs to promote their products by tying up with the right MLM business.
- The Network Marketing business can act as an employment generator. Along with providing passive income to marketers, it also provides employment opportunities.
- The Network Marketing or MLM companies are a good source as huge tax generators to the government. It helps in improving the Indian economy.
The Indian Direct Selling industry that is currently raked 15 globally, as per a news report in The Economic Times, is set to employ 18 million people by 2025. Further, according to industry estimates, it is expected to grow at a Compounded Annual Growth Rate (CAGR) of around 4.8% to reach INR 15,930 crores by the end of the year 2021.
The Closing Comments – The Direct Selling Business is Set to Grow in India
From the above discussion and the projected Indian MLM business market size, the Network Marketing industry in India can be more successful in the future. However, when you decide to step in to join hands with a Direct Selling company, you need to verify its credentials before collaborating. The MLM business in India has seen continuous growth over the years. Its benefits have enhanced the value of the Indian economy. Though the MLM business is slow to catch up with the people in India, it is likely to pick up on a bigger scale as the Government of India has put in place various guidelines and policies like Foreign Direct Investment (FDI) and the Consumer Protection Bill that will boost the environment for the MLM business.
