Only 25 per cent goes to the farmer/manufacturer while the remaining 75 per cent goes to the middlemen. It is the opposite in the US. That is why a national level regulation on Direct Selling is the need of the hour in India”
Observing that the scope to reach customers is very high in Direct
Selling and that the interests of the customers should be of paramount interest to the Direct Selling companies, he said ‘It is a challenge to India to address the short comings of this industry’, he added.
This industry has a huge potential for women empowerment as well. Sky is the limit and the scope is very high for any person to develop and improve their standard of living’, he said.
Change in Distribution MODEL – The URTSAM Direct Selling LOGIC
which have smaller or zero marketing budgets
find the DS/MLM industry
a viable alternative platform
to launch products – transitioning to traditional retails formats
once these products achieve some level of critical mass
in terms of demand.
The Direct Selling or Multi-level Marketing (DS/MLM) industry has taken the world by storm offering a radically innovative model of leveraging word-of-mouth marketing,
cutting overhead costs of store maintenance
development, product and brand promotion,
sales force etc.,
offering these typical overhead costs
as commission to its distributors.
The industry is immensely successful in providing
to millions of individuals
with an estimated over 7 crore such entrepreneurs in India who,
leveraging this opportunity,
started their own businesses
selling products manufactured
promoted by DSCs.
Most countries have formulated
clear legislative frameworks and clear guidelines
protecting both the DSCs and consumers in the process.
Citizens have clearly benefited
through the self-employment opportunity
offered by this industry and China
– one of the recent countries in Asia
to have ushered a clear legislative framework
for the industry having provided licenses to
38 DS/MLM companies is one of the largest markets today.