The Indian Direct Selling Association (IDSA)-an association of companies selling products through the direct selling (DS) route-has projected a growth rate of 40-60 per cent in turnover for the direct selling industry in 2000-01. IDSA achieved a growth of 38.5 per cent in 1999-2000.According to IDSA executive manager Ms Koyalgeet Kaur Hanjra: "As regards the IDSA annual survey, the collective turnover of the industry increased from $140 million in 1998-99, to $200 million in 1999-2000."pReasons Ms Hanjra: "The estimates include sales clocked by non-IDSA member- companies. The growth has been commensurate with expectations."The industry has also targeted a growth of 50-60 per cent in the number of sales persons in 2000-2001, compared to 40 per cent in the previous year.Says Ms Hanjra: "The number of sales persons has gone up from five lakh last year to seven lakh in 1999-2000."
As regards the future trend, says Ms Hanjra: "The trend is expected to remain the same over the next couple of years." She, however, warned against unscrupulous elements marking an entry in the industry.
According to Ms Hanjra: "The nature of our industry demands that a substantial portion of the turnover of a company be invested back into the distributors in the form of training. Hence, IDSA members spendabout 5 to 7 per cent of their turnover on training and development, which is substantially higher than the rest of the Indian industry as a whole."Over the past five years, IDSA members have collectively offered Rs 3.58 lakh income opportunities to people from all walks of life. In 1998, direct selling consultants working for direct selling companies collectively earned Rs 100 crore as commissions and bonuses.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
