New Delhi, August 21, Despite a dip in global retail sales, the direct selling industry in India rose one notch and now stands at the 11th place on global ranking. India registered retail sales of over $3.23 billion in 2022, as per the latest report released by the World Federation of Direct Selling Association (WFDSA).
The Indian market attained highest Compounded Annual Growth Rate (CAGR) of over 13.3 percent during the last three years on a constant dollar basis. This is all the more impressive, given that only three of the global top 10 direct sellers, are in Indian market.
The report indicates that India, while at 11th place in the global rankings, maintained 6th place in the Asia-Pacific region, with Korea among the top countries, followed by China, Japan, Malaysia and Taiwan.
The report highlights that global retail sales took a hit and decreased by 15 percent to $172.8 billion during the year from $175.5 billion in 2021. However, it managed to register a CAGR of 0.9 percent from 2019 to 2022. Despite the blip, sales have surpassed the pre-pandemic level of $168.17 billion in 2019 and $172.14 billion in 2020, the first year of the pandemic. Beating the challenges caused by the COVID-19 pandemic during the first quarter of the year, the Indian market has shown tremendous resilience and sustainability and could realize annualized growth of over 5.4 percent during the last year, which could be construed as marginally good, the report says.
During the period, the United States continued to lead the ranking in the global direct selling industry with sales of $40.52 billion, while reporting a negative YOY growth of five percent.
Overall, global retail sales demonstrated resilience and positive growth during the mentioned period, showcasing the ability of the industry to adapt and flourish even amidst challenging circumstances, the report concludes.
Rajat Banerji, Chairman, Indian Direct Selling Association (IDSA), while reacting to the WFDSA report, said, “India’s direct selling market is growing steadily and has the potential to place itself in the top five global markets over the next decade.
“With the notification of Consumer Protection (Direct Selling) Rules 2021 and its subsequent amendment, the direct selling industry in India should see stability that could inspire investor confidence as well as interest from the large global direct selling companies. Only three among the top ten, are in India today and we would like to see all start their business in India and contribute to the overall socio-economic development of the nation,” Rajat adds.
About IDSA- The Indian Direct Selling Association IDSA is an autonomous, self-regulatory body for the direct selling industry in India. The Association acts as an interface between the industry and policy-making bodies of the Government facilitating the cause of the Direct Selling Industry in India. IDSA strives to create and further an environment conducive to the growth of the direct selling industry in India, partnering with industry and government alike through advisory and consultative activities. IDSA catalyzes change by working closely with the government on policy issues, enhancing efficiency and ushering desired credibility, clarity & confidence in Direct Selling.
