The health and wellness segment, which currently contributes 40 per cent to the Rs 5,230-crore direct selling market in India, is likely to account for 50-60 per cent in the next couple of years, said S Subramanian, chairman, Indian Direct Selling Association (IDSA).
Releasing the Indian direct selling industry's annual survey report for 2010-11 in Hyderabad on Wednesday, he said that traditionally cosmetics and beautycare products used to rule the direct selling market. However, health and wellness segment, of late, had been growing with the largest share.
“While the health and wellness segment is leading the league with a 40 per cent share of the organised market in terms of revenues, followed by cosmetics and personal care (32 per cent), home improvement (10 per cent), home care and household goods account for eight per cent each, with food stuff and beverages and others having one per cent share each,” he said.
The report revealed that the Indian direct selling market was expected to grow at 20 per cent to reach Rs 10,800 crore over the next four years.
“The outlook for the direct selling market is huge, and the market has grown from nine per cent year-on-year in 2006-07 to 27 per cent in 2010-11. The robust growth in the segment has been contributed by 28 per cent growth in the organised and 17 per cent growth in the unorganised segments of the industry during 2010-11,” he said.
The major growth drivers are increasing awareness and widening reach of the direct selling consultants, Subramanian added.
IDSA has 18 members, both Indian and international, including Amway, Oriflame, Tupperware and Max New York Life Insurance.