The direct selling industry's gross sales are estimated to touch Rs 23,654.3 crore by 2019-20 on account of a conducive framework in the country, according to survey conducted jointly by the Indian Direct Selling Association (IDSA) and PHD Chamber of Commerce and Industry.
The industry's gross sales stood at Rs 7,958.3 crore in 2014-15, as against Rs 7,472.2 crore in 2013-14, registering a growth of 6.5%.
The annual survey report, which was released in Hyderabad on Thursday, highlighted that the northern region contributed around Rs 2,387.5 crore to the overall gross sales in 2014-15, while eastern and north-eastern regions accounted for Rs 1,432.5 crore and Rs 1,034.6 crore respectively. The southern region's contribution has been around 1,830.4 crore in 2014-15.
"Due to the lack of regulatory framework and some unfortunate incidents in the country, the industry has witnessed a decline in the number of direct sellers from 4.3 million in 2013-14 to 3.9 million in 2014-15. However, the industry still has witnessed growth, which proves that this distribution model is gaining popularity among the customers," IDSA treasurer Vivek Katoch said in a statement.
The industry has registered a modest recovery in 2014-15 as compared to the previous year, S P Sharma, chief economist of PHD Chamber of Commerce and Industry, said, adding that on the basis of growth perceptions of the direct selling entities, the industry had the potential to enter a double-digit growth, going ahead, on account of strong legislation, reviving investments in the economy and expanding the consumer base across all segment of the economy.