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India direct selling market led by Amway India Enterprises Pvt Ltd in 2013
Direct Selling in India - a new market research report on 2014-04-30 03:52:01
Direct selling in India remains under the dominant influence of international companies such as Amway, Herbalife and Tupperware, among others. As the channel grows with the help of the strong distribution networks of these international direct selling companies, especially in second-tier and third-tier cities, the lack of proper legislation and legal framework regulating direct selling has allowed several rogue companies to scam a large number of consumers by purporting to be legitimate direct selling companies. Although direct selling witnessed strong growth in 2013, the constant stream of news reports about scams conducted by rogue direct selling companies led many consumers to shy away from the channel, thereby preventing direct selling from achieving its full growth potential. The Indian Direct Selling Association continues to demand the development of a proper legal framework for the channel, although nothing concrete has been established in this respect yet.
Amway India Enterprises Pvt Ltd continued to lead direct selling in 2013 with a 28% value share. Amway remained one of the most trusted direct selling companies in India throughout the forecast period. The company remains very well-known for the high quality of its products and the very wide variety of products it offers ranging across beauty and personal care, weight management and vitamins and dietary supplements.
Direct selling is expected to witness steady growth during the forecast period as the channel will continue to be dominated by consumer health direct selling and beauty and personal care direct selling. In addition, food and drink direct selling is expected to grow rapidly over the forecast period, contributing to the strong growth expected overall in direct selling throughout the forecast period.
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