Table of content
- Impact of direct selling: Introduction
- Impact of Direct Selling on the Global Economy
- Impact of Direct Selling on the Indian Economy
- Conclusion
- Related
Introduction
Direct selling is also known as network marketing or multi-level marketing (MLM). It allows individuals to sell products directly to their consumers through personal relationships and word-of-mouth marketing.
Recently, direct selling has gained a lot of traction. It has an impact on the global, national, and local economies and contributes significantly to the world G.D.P as well as the G.D.P of India.
In this article, we will explore the various ways in which direct selling has impacted the global, national and local economic spheres.
Impact of Direct Selling on the Global Economy
The direct selling industry has recently emerged as a powerful force in the global economy. It has been contributing significantly to job creation and GDP growth across the world.
According to the World Federation of Direct Selling Associations (WFDSA), the global direct-selling industry market size over $200 billion in retail sales in 2020, and it is successfully operating in over 80 countries. The WFDSA also estimates that around 117 people are a part of this industry. Out of these 117 million, 74% are women.
This substantial revenue has a direct impact on economic growth, as it stimulates consumer spending and generates income for millions of direct sellers worldwide.
This industry not only contributes to economic growth but also to social and gender equality as it aligns with the needs of today’s women and helps them get financially independent.
Impact of Direct Selling on the Indian Economy
In India, currently, more than 5.1 million people are associated with the direct selling industry. 60% direct sellers of which are women.
India is witnessing growth in terms of the “Number of direct sellers” in India.
In 2016-2017, India had around 5.1 million people engaged in direct selling. This number rose to 5.7 million in 2018-2019, in just 2 years
These numbers strongly indicate that approximately 800 people join the direct selling industry every day, making direct selling a major contributor to India’s economic development.
This industry has existed for more than 20 years in India and has made a meaningful social contribution.
By 2025, it is estimated that this industry will be worth Rs 645 billion in India.
Direct selling plays a crucial role in employment generation in India because of fewer job opportunities. It also has a positive ripple effect on the manufacturing, logistics, and packaging industry.
If we speak about the small and local economies within India, direct selling has a profound impact on them, particularly in small towns and rural areas.
Direct selling enables individuals to become independent distributors. This creates a network of micro-entrepreneurs who promote and sell products within their communities. This localized approach brings innovative products closer to consumers and also stimulates local economic activities.
Conclusion
Direct selling has evidently left an impact on the global and national & local economies in India. It has contributed to job creation, GDP growth, economic empowerment and social contributions.
This industry has empowered individuals, especially women, and offered them business opportunities and financial independence.
As this industry continues to evolve and change market dynamics, its positive impact on the economy is expected to persist. Governments across the world should recognize its potential to drive economic growth, boost entrepreneurship, and empower individuals, especially women.
Related
Direct Selling Industry and the Gig Economy
How To Navigate The Post-Pandemic Economy As A Direct Seller
Why Micro, Small and Medium-Sized Enterprises Are So Valuable to the Economy
What Lies Ahead: The Future of QNET and the Direct Selling Industry in 2023
How Direct Selling is Going to Help in Reviving the Indian Economy?
PDF: Direct selling A global industry empowering millions in India
