Direct selling industry grows 4.7 pc in H1 FY21: Report

The industry also expanded its base by adding around 53 lakh new entrants direct sellers and consumers in comparison to the April-September period of the previous fiscal, the Indian Direct Selling Association IDSA said.

The Indian direct selling industry grew 4.70 per cent to Rs 7,500 crore in the first half of the current fiscal despite facing COVID-19-related challenges, industry body IDSA said. The industry also expanded its base by adding around 53 lakh new entrants (direct sellers and consumers) in comparison to the April-September period of the previous fiscal, the Indian Direct Selling Association (IDSA) said. The 'wellness' segment registered the highest year-on-year growth of 20.45 per cent during April-September FY21, as per a survey by IDSA. ''The gross Direct Selling sales for the H1 of 2020-21 is estimated to have crossed the mark of Rs 7,500 crore compared to Rs 7,200 crore in the same period a year before,'' it said. The strictest phases of the coronavirus lockdown during the April-June quarter had impacted the industry, it added.

However, the industry logged robust growth in the second quarter during the unlock phase. ''The Y-O-Y growth of Q1 and Q2 of FY 2020-21 stood at 0.90 per cent and 9.25 per cent respectively. During the same period, close to 53 lakh new entrants are estimated to have joined the Direct Selling industry as customers and direct sellers,'' it said. IDSA Chairperson Rini Sanyal said at a time when most business sectors have faced a downturn, the direct selling industry has registered a healthy growth in gross sales. ''What is even more heartening is the fact that the industry has witnessed a significantly higher number of new entrants, many of whom are going to pursue Direct Selling as a full time or part time opportunity,'' she added.

Owing to increased awareness about the importance of immunity, health and nutrition, the wellness segment registered the highest growth of 20.45 per cent during the first half of 2020-21. While sales of the cosmetics segment was almost flat, other segments like homecare and household goods registered a combined y-o-y growth of 15.17 per cent during the period.

Wellness, cosmetics and homecare are the biggest segments of direct selling sector in India and together constitute nearly 90 per cent of the overall sales..