India Emerging as Vast Direct Sales Market
Oct. 6 – India is fast emerging as a key destination for international direct selling companies. Lured by consistent annual growth in excess of 30 per cent for the past four years, at least five multinational companies selling cosmetics, tableware, home furnishings and health products plan to enter India’s US$33 billion direct selling industry.
Jafra Cosmetics International, Nu Skin Enterprises, Srithai Superware Public Co. Ltd, Sportron International Inc. and Golden Warp Pty Ltd have trained their sights on India and have started the process to enter the market, according to the Indian Direct Selling Association (ISDA).
Direct selling is the marketing of products or services directly to consumers, generally in their homes, at the workplace or anywhere away from permanent retail locations, through explanation or demonstration. One example, headquartered at Jafra, is a division of the Germany-based Vorwerk group which sells skincare and beauty products. The company is planning its entry through a joint venture with India’s Ruchi Soya Industries Ltd.
Meanwhile, NSE-listed Nu Skin Enterprises, which sells and markets personal care products is currently talking to consultants here, Thailand-based Srithai Superware Public Co., which makes Melamine tableware, recently opened its first trading office in Delhi. Sportron International, maker of health and wellness products, and Australian Golden Warp, operating in the home furnishing and textile space, are also both likely to start operations soon.
“Direct selling companies from the U.S., Europe and Southeast Asia are eyeing Indian potential. Newer products and services are to come to India, as the market and consumer mind is more open,” said IDSA Chairman Fredrik Widell.
Tupperware India Pvt. Ltd, which sells food storage, preparation and serving dishes, is expanding its distribution by appointing more consultants in the 50 cities and towns it operates in. “The company is also focusing on developing categories especially for India to suit consumers’ requirement here. Plus, our products are being showcased at retail points such as Big Bazaar for consumers to touch and feel,” said Rupperware India Managing Director Asha.
Even Modicare Ltd, which currently offers products across categories such as personal care, cosmetics and health and wellness, is increasing its product portfolio by adding 30 new products besides getting into new categories. In order to ensure transparency in the industry, IDSA is in dialogue with the government to devise guidelines that will serve as entry barriers for non-serious and fraudulent players.
Direct Selling in India
India Enacts Direct Selling Legislation
- Previous Article Ford to License Brand for Accessories in India
- Next Article GE to Combine Healthcare Units in India Under Joint Venture