Direct hit
When Subrata Roy’s Sahara India recently unveiled its plans to sell self-branded products under the brand name of Q Shop using the direct selling platform, it brought the focus back on this segment, which has been steadily growing even in these times of economic distress.
Not many know that the direct selling sector in India has almost tripled in the past five years, with a distributor base of 45 lakh people, say estimates by Ernst and Young (E&Y) and Indian Direct Selling Association (IDSA). And, backed by affordable prices, money-back guarantee, home delivery and convenience, the segment can only just grow. Says Chavi Hemanth, secretary general, IDSA (self-regulatory body of direct selling in India), “The direct selling sector is growing at a compounded annual growth rate (CAGR) of 20% and is expected to reach R7,120 crore in 2012—almost triple of what it was five years ago at R2,520 crore.” Hemant adds that brands like Tupperware are part of almost every kitchen today and Amway’s health supplements like Nutralite are among the market leaders.
Which explains why big brands like Sahara are jumping into the fray. As Subrata Roy, chairman, Sahara India, tells FE, “We would use the direct selling model for this venture and are targeting revenues of R20,000 crore
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