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Indian direct selling industry reports $3.25 billion sales in 2021, ranks 12 globally

The Indian direct selling industry reported a growth of 7.7 per cent in 2021 and had a CAGR (Compound Annual Growth Rate) of 15.7 per cent in the last three years from 2018 to 2021, grabbing sixth position in the Asia Pacific region, the report added.

June 30, 2022 / 09:27 AM IST
Representative Image

Representative Image

The Indian direct selling industry has reported retail sales of USD 3.25 billion in 2021 (around Rs 27,650 crore) and maintained its 12th place in the global rankings, said a report released by Washington-based World Federation of Direct Selling Associations (WFDSA).

The Indian direct selling industry reported a growth of 7.7 per cent in 2021 and had a CAGR (Compound Annual Growth Rate) of 15.7 per cent in the last three years from 2018 to 2021, grabbing sixth position in the Asia Pacific region, the report added.

The Indian direct selling industry is led by companies, including Amway, Avon, Oriflame, Modicare, Herbalife etc. US has emerged as the top direct selling market accounting for 23 per cent of the total sales with USD 42.67 billion retail sales, said WFDSA report.

It was followed by South Korea and Germany, both contributing equally 10 per cent of the total global sales with around USD 19 billion sales from direct retail. In 2021, the global direct selling industry reported sales of USD 186.10 billion, up 1.5 per cent in constant currency terms, the WFDSA report added.

During the period, wellness category reported the highest sales and contributed around 35 per cent of the global sales, followed by the cosmetics & personal care segment with 25 per cent. Top 10 countries, including the US, Germany, South Korea, China, Japan, Malaysia, Brazil, Mexico, France and Taiwan, contributed 78 per cent of the global sales.

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"Excluding China sales, the industry continued growth with a three-year compound annual growth rate of 3.8 per cent for the 2018-2021 period," the report said. Commenting on the report Indian Direct Selling Association (IDSA) chairman Rajat Banerji said: "Despite the extreme adverse business environment posed by the COVID-19 pandemic, the Indian direct selling industry, except for the minor blips at first, has shown resilience and sustainability.

"The CAGR of 15.7 per cent and the year-on-year growth rate of 7.7 per cent reaffirms the industry's commitment to further heights, while protecting the consumer interests and those of the direct sellers who have relentlessly sweated out to contribute to attain the mark," Banerji said. Based at Washington DC, WFDSA is an international organisation representing the worldwide direct selling industry. It consists of 60 national associations including the IDSA.

IDSA is the self-regulatory body for the direct selling industry in India. It acts as an interface between the industry and policy-making bodies.
PTI
first published: Jun 30, 2022 09:30 am
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