New Delhi, India (PressExposure) November 11, 2009 -- The Indian Direct Selling Association (IDSA), in order to boost self-employment, has urged the Centre to formulate a regulatory framework so that the true potential of the sector could be realised.
âGrowing at 13 per cent annually, a definition of direct selling as a legitimate distribution and marketing model will ensure transparency and can accelerate the growth rate manifold,â IDSA Chairman Fredrik Widell told The Hindu.
Pointing out that the direct selling business is likely to double its size to Rs. 5,000 crore in the next three years considering Indiaâs huge population base, Mr. Widell, who is also Oriflame Indiaâs Managing Director, said: âThe growing concern of increasing number of fraudulent schemes and fly-by-night companies makes the demand for a proper legislation all the more pressing. This will not only protect the interest of legitimate direct selling companies but also that of the consumers at large.â
The IDSA, a 15-member body, is the India chapter of the Washington-based World Federation of Direct Selling Associations (WFDSA), which regulates, strengthens and promotes direct selling in over 59 countries. Its aim is to promote direct selling, which is marketing and selling products to the customers directly free from any retail points.
According to IDSA Secretary General Chavi Hemanth, they were now working with the government to form a policy framework for direct selling, in line with the international laws prevalent in the West.
âA 14-year old industry in India with low investments and commensurate greater returns, direct selling has the potential to become the key driver of gainful self employment in the country. Around 16 lakh people are engaged with direct selling. In the next three years, it would reach up to 27 lakh people,â she pointed out.
Ms. Hemanth further said: âDirect selling companies from the U.S., Europe and Southeast Asia are eying Indiaâs huge potential. Newer products and services are ready to enter the Indian market and legislation will definitely accelerate the whole process.â
Talking about India, she said the southern region has been traditionally a good market for direct selling contributing around 30-35 per cent to the all-India sales figure, while a significant rise in the revenue was expected from eastern and northern India.
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