Over the past few years, network marketing in India has gained strength, more so after the onset of the deadly Covid-19 pandemic. And factors that have perhaps facilitated the industry’s growth can be attributed to the online solutions that consumers seek or the ongoing employment worries that have set in due to the pandemic-induced economic crisis. Let us delve into why the Direct Selling industry, also known as Network Marketing or Multilevel Marketing (MLM), is flourishing in tough economic times.
Direct Selling Post 2020 – Challenging Times Creating Opportunities for Entrepreneurs
Due to the economic crisis followed by the onset of the Coronavirus pandemic in 2020, most industries took a hit – some had to halt their operations while others are still recovering. It has led entrepreneurs, in general, to change their day-to-day transactions and deals. Many adjusted to the new work from home norm long-drawn in-person meetings were converted into video conferencing.
The Direct Selling Industry has been an exception. Not only has it survived the onslaught of the severe pandemic but, it has gained in strength. The World Federation of Direct Selling Associations (WFDSA) report says that the Indian Direct Selling Industry recorded sales of USD 2.47 billion in 2019 – a YOY 12.1 percent growth. India improved its global ranking and moved to the 15th spot from the 19th in the previous year. The future of direct selling network marketing in India is very bright.
Reasons for Network Marketing in India Succeeding
The distributed workforce of Direct Selling companies comprises mainly of Independent Representatives or Sales Representatives who have proved to be robust and are operating by leveraging digital ways. By 2025, the Indian Direct Selling Industry will touch INR 64500 crores – this is as per a report in the news website BusinessWorld. Ever wondered why the Direct Selling industry has flourished even in tough times and expected to stride forward going against the tide?
Generating Livelihoods
The Direct Selling industry in India, which is growing at an impressive rate of 12.1 percent Year on Year, has been instrumental in generating employment. It has enabled nearly 122 million Indians who lost their jobs during the pandemic to earn their livelihoods.
2020 was a year of uncertainties for many and continues – many have lost their loved ones while others their livelihoods. The arrival of the Covid-19 vaccine in 2021 was comforting news but, the complacency that followed wherein people forgot social distancing, the importance of wearing masks and being casual resulted in the unexpected second wave that is now slowly receding. Some industries have now started witnessing recovery. The direct selling sector, which thrived even during the tough times, continues to promise a bright future.
Consumers are Getting Tech Savvy
Today’s consumers are tech-savvy and hooked on online gadgets. These consumers look for online solutions. Further, even most homeworkers are online via several social media websites or messaging apps. They also seek new ways to generate incomes to support their families. Direct Selling has been able to address both these issues – they showcase and sell their products online and at the same time help homemakers to earn money in their spare time by recruiting them as Sales Representatives.
Companies are Adopting Digital Ways
The digital revolution has forced many companies to change their marketing strategies and adapt various digital ways. The digital transformation has indeed created an atmosphere wherein the Direct Selling companies and prospects or consumers interact more frequently. Online digital ways have enabled companies to showcase their products or services. It has enabled them to drive their sales by giving customers an exceptional shopping experience.
Digital Transformation – The Driving Force Behind Network Marketing Growth
The digital revolution that has taken the country by storm has been the key reason for the growth of the Direct Selling Industry. As seen above, consumers today are more tech-savvy. Most companies in the Direct Selling business have adopted online digital ways of interacting with their prospects and customers, giving them exceptional shopping experience and an opportunity to attain financial freedom by collaborating with them as Independent Representatives. When most consumers are confined to their homes due to the enforcement of frequent lockdowns and looking for ways to make an earning, the Direct Selling opportunity is a double whammy – it delivers products right at the doorstep of the customer. It offers an opportunity to partner with them as Sales Representatives. That is the reason why Network Marketing in India is here to stay and will continue to grow in the years to come.
