A study of Indian direct selling industry

India is one of the fastest growing economies in the world. Over the past decade, the gross domestic product (GDP) and per capita income has grown at an average annual rate of seven per cent and five per cent, respectively. In 2007, India was ranked the 12th largest consumer market in the world and it is expected to be the fifth largest consumer market by 2025 after the United States (US), Japan, China and the United Kingdom (UK). With economic development and growing consumerism, the retail sector in India also underwent significant changes. India is a major hub for most of the direct selling companies in the world and is going to be one of the biggest markets in the world as population is one of the major factor for the growth of the industry. In short Direct Selling in India as of 2014 has a size of Rs 7200 crore as announced in a study. Various store and non-store retail formats have evolved to cater to this growing market and direct selling is one such non-store retail format. Direct Selling is an alternate distribution channel which establishes direct reach to consumers. It is a rapidly emerging channel that boosts self employment opportunities, encourages women empowerment and holds immense importance to the overall economic system. This research paper assesses the direct selling industry across several parameters such as revenue generated, sales force employment, product category coverage. It also highlights the issues and challenges that inhibit the growth of the Indian direct selling industry.