– By Gautam Bali
The direct selling industry has held a significant position in the global business landscape, offering a distinct pathway for young individuals to kickstart their entrepreneurial journey, while contributing to economic growth. Over the recent years, this sector has increasingly captivated the youth, offering them opportunities to enhance their skills and foster their entrepreneurial development.
Direct selling, among the most time-honoured methods of sales, has evolved into a global industry operating in over 80 per cent of the countries globally, with a market worth exceeding $200 billion.
While its roots in India date back to the late 1990s, substantial growth occurred post-liberalization, attracting several global players. Presently, India boasts a thriving direct-selling market estimated at around Rs 16 billion. This industry has not only created opportunities for additional income but has also played a pivotal role in nurturing essential skills that can be used in various aspects of life.
One of the most remarkable characteristics of the direct selling industry in India is its appeal to the youth. Amid India’s rising young population, this sector presents a promising avenue for cultivating talent and fuelling innovative business growth. According to the WFDSA, India’s direct-selling workforce increased to 5.7 million in 2018-19, with a projection to reach 18 million by 2025. What’s particularly encouraging is that over 60 per cent of this workforce comprises young individuals below the age of 35.
Direct selling serves as a platform for young entrepreneurs to cultivate a diverse skill set. These competencies encompass the art of persuasion, effective communication, and adept customer relationship management, all of which are invaluable in any entrepreneurial endeavour or career path. Furthermore, individuals engaged in direct-selling frequently find themselves in leadership roles, leading and building teams, thus refining their leadership and team-building abilities, which are transferable to managing and expanding businesses. Moreover, direct-selling imparts practical financial literacy, teaching essential skills like financial planning, and income management. Lastly, it underscores the significance of networking and relationship-building, emphasizing their pivotal role in personal and professional growth.
With millions of graduates entering job markets each year, India’s youth face a significant employment gap. Unfortunately, only a fraction of them secure traditional jobs, leaving many underemployed or unemployed. Direct selling presents a valuable alternative career path for young individuals, enabling them to develop essential skills and foster an entrepreneurial mindset. This not only aids in mitigating the unemployment rate but also contributes significantly to the country’s overall economic growth. Direct selling offers income-generating opportunities, rendering it a viable option for those seeking financial stability and independence.
Recognizing the potential of the direct selling industry in skill development and economic growth, efforts are being made to formalize it and integrate it into mainstream education. Collaborations with educational institutions are actively sought to provide skill development opportunities that can lead to sustainable income paths for the youth.
In conclusion, the direct selling industry has emerged as a potent force for skill development of the youth and entrepreneurial growth in India. It not only offers a pathway to financial independence but also equips young individuals with a diverse set of skills that can be applied in various facets of life. Nonetheless, individuals should approach this industry with caution and choose reputable companies to ensure a positive and ethical experience. As India strives for inclusive growth, the direct selling industry stands as a shining example of how economic empowerment and skill development can go hand in hand, benefiting individuals and the nation as a whole.
(Gautam Bali is the Founder and Managing Director of Vestige Marketing Pvt. Ltd.)
(Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.)