India’s direct selling industry has shown a remarkable growth in retail sales in 2022. According to a report by the World Federation of Direct Selling Associations (WFDSA), India has secured the 11th position among the top markets for direct sellers, with retail sales of $3.23 billion (around ₹26,852 crore). This is a significant achievement considering the decline in global retail sales by 1.5% in 2022 to $172.89 billion.
Despite the pandemic, India experienced a growth of 5.4% in retail sales compared to the previous year. Over the past three years, India exhibited the highest compounded annual growth rate (CAGR) of over 13.3% in constant dollars. The growth in India’s retail sales has instilled optimism in the industry with Rajat Banerji, Chairman of the Indian Direct Selling Association (IDSA), stating that India will soon position itself among the top 5 markets for direct selling. Banerji believes that India’s direct selling market is steadily growing and has the potential to become one of the top five global markets within the next decade.
IDSA, which serves as a link between the industry and government policy-making bodies, played a crucial role in drafting the Consumer Protection (Direct Selling) Rules 2021. The introduction of this regulation led to more stability in the industry and inspired investor confidence. Banerji also expressed his desire to have all top ten direct sellers operating in India.The report shows that the United States remains the leading retail seller with direct sales worth $40.52 billion, which is a 5% decline compared to 2021. Korea, Germany, China, Japan, and Malaysia also feature in the top markets for direct selling.
However, India’s performance is noteworthy, especially considering the challenges posed by the pandemic. This growth can be attributed to the increasing popularity of direct selling, which is supported by the rise of e-commerce and increased digitization of the market. With the Indian government’s push towards self-reliance and entrepreneurship, it is expected that the direct selling industry will continue to grow in the upcoming years.