Direct Selling – Ready to Revolutionize The Indian Market

by Nyk Patel Writer and Fitness Freak

In the era of globalization and trends in information technology, the realm of marketing has observed a drastic change. While traditional marketing involves promotion of products at shopping arcades and retail outlets, E-Commerce has helped to showcase a wide range of products. Moving ahead, marketing has been revolutionized as people can use the social media platforms with ease.

Apart from E-Commerce, today, marketing is also based on ‘direct selling’ and multi-level marketing’ models.  If a person is managing a direct selling business, then the products would be sold off by an experienced professional or from a fixed retail outlet. He could either take the advantage of a distribution channel or tactics that would help him boost online sales.

There are many reasons why direct selling is going to dominate in the Indian market. While the model cuts down costs to a considerable extent, a person can always observe an ever-increasing rate of profit.

The case with a multi-level marketing model is very much different. This could be referred to as sales through word-of-mouth marketing, recruiting sales representatives, and earning commissions on the basis of items sold by representatives.

Apart from the low risk and minimum cost, small-scale business has now considered the direct selling model. This makes it much more popular as the marketing professional constantly interacts with individuals. It’s not necessary to be qualified to do such a kind of business. But, a determination to expand the professional network can take him a long way to the road of success.

In addition, direct selling individuals can move on anytime they feel like. They don’t have to report what they have achieved as they are their own bosses.

Consequently, direct selling drives the economy by being an additional source of income, and offering an opportunity to run a small business. With digital growth becoming the game changer for the Indian economy, the nation should be ready to adopt the direct selling model.

However, direct sellers in India face challenges like an improper regulatory framework and norms laid down by the legislation. Moreover, direct selling businesses are often compared with Ponzi schemes and money circulation schemes. This eventually resulted in a criminal action where such businesses were accused of cheating and hampering the growth of everyone in the direct selling industry.

Over a period of time, the efforts of the Indian government were commendable as officials found a solution to misguidance. Way back in September 2016, the guidelines were defined that a direct selling business would not be considered as a pyramid scheme. In fact, the guidelines emphasized on the dos and don’ts with the need of rolling out a written contract.

Another interesting development was when the Karnataka High court recognized the evolution of direct selling as a global industry. Judicial intervention was necessary when large multi-level marketing companies committed an offence. This certainly helped to sort out the differences if they actually prevailed in the direct selling industry.

The future of the direct selling industry seems bright because the growth is anticipated to be Rs. 645 billion by 2025. Accordingly, numerous states would be laying down rules which would lead to the growth of the model in India. At the same time, regulatory authorities should always stop being critical to the direct selling businesses. Everyone who has the authority should follow the Karnataka’s high court example stated above. In the end, the endeavors along with entrepreneurial growth will add on to the success of the direct selling industry. This in turn, would make India as one of the leaders in the arena of marketing. People would be more than happy to accomplish their goals when a direct selling business offers them to earn something more.

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About Nyk Patel Junior   Writer and Fitness Freak

2 connections, 0 recommendations, 17 honor points.
Joined APSense since, November 26th, 2017, From Ahmedabad, India.

Created on Apr 19th 2018 03:20. Viewed 511 times.


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