Direct selling industry in Gujarat can reach ` 48-50 bn. by 2025
The direct selling industry in India is currently reckoned at INR 75 billion, one of the fastest growing non-store retail formats, recording double digit growth of more than 16 per cent over the past four years. It has attracted a large number of Indian and foreign direct selling companies. The FICCI-KPMG India report, titled, 'Direct Selling: Gujarat' launched in Ahmedabad on May 5, 2016, estimates that this industry in Gujarat has the potential to reach a size of INR 4850 billion by 2025, driven by the swelling share of middle income households, growth in consumer markets and an increase in the penetration of direct selling to globally comparable levels. The report also suggests that realising this potential is contingent on creating an enabling environment for the industry and mitigating some of the challenges it faces today.
Rajiv Vastupal, Chairman, FICCI Gujarat State Council, said, “The industry is known to facilitate self-employment opportunities and promote women empowerment. Women constitute about 60 per cent of the total direct seller's workforce of the state. It has been observed that with the rising costs of living, the direct selling business is gaining popularity among men too who are looking at it as a supplementary earning opportunity. The share of men in the workforce has increased from 38 per cent in FY12 to about 42 per cent in FY14.”
Rajat Banerji, Chair – FICCI Direct Selling Task Force, said, “We find in Gujarat an enhanced entrepreneurial spirit and keenness to pursue available business opportunities. This has led to a steady growth of this industry in the state. We believe that further impetus will come from clear regulation at the statelevel as that would give ethical direct sellers the confidence to expand their operations in Gujarat.”
Chetan Kakariya, Director, Tax & Regulatory Services, KPMG in India, said, “The industry's functions heavily rely on individuals to accomplish sales which give rise to a number of fraudulent businesses emulating the form. This is one of the biggest challenges the industry faces to its growth today. The need of the hour is to revisit the existing laws and bring about clarity in the regulatory environment, rebuilding trust and sensitivity.”
The FICCI-KPMG India report estimates that the state has witnessed a continuous growth in the number of direct sellers with a growth rate of 23 per cent between FY10 and FY14. The number of direct sellers has increased from 0.12-0.14 million in FY10 to 0.29-0.31 million in FY14. The report outlines several socioeconomic benefits that the industry extends.
development. The need of the hour is to make the work environment, employment policies and integration at work place accessible, thus enabling the industry to explore an untapped pool of valuable human resource. To take forward the agenda of the Accessible India Campaign (Sugamya Bharat Abhiyan) to the states, the Department of Empowerment of Persons with Disabilities, Ministry of Social Justice and Empowerment, Government of India in collaboration with FICCI, conducted an Awareness Workshop on Accessible India Campaign in Ahmedabad on May 21, 2016.
The workshop was held in the presence of Anandiben Patel, Chief Minister of Gujarat, along with Thaawarchand Gehlot, Minister of Social Justice & Empowerment, Gujarat; Krishan Pal Gurjar, Minister of State, Social Justice and Empowerment, Gujarat and Ramanlal Vora, Minister of Social Justice and Empowerment, Gujarat.
The workshop aimed at making government officials, industry representatives, civil society organizations and education institutions aware of the vision of the campaign and the opportunities of furthering the same by working together. Furthering the vision with the industry, the Inclusiveness and Accessibility Index developed by the Department of Empowerment of Persons with Disabilities, Ministry of Social Justice and Empowerment in collaboration with FICCI was presented to prompt the industry representatives to understand and adopt a strategy of making the workplace accessible and inclusive.
The Inclusiveness and Accessibility Index is a service being extended to the industry to participate in the campaign by voluntarily evaluating their readiness for making the workplace accessible for Persons with Disability. The Index is a set of benchmarks that has been structured in a four-level maturity model. The Toolkit based on the model assists companies, irrespective of size and scale, in identifying their level of preparedness and gives an action plan for building their accessibility.
The Inclusiveness and Accessibility Index will benefit the industry by enabling them to achieve benchmarks and follow best practices, access to a diverse talent pool, creates a homogenous work environment and increases employee loyalty as well as reduce employee attrition. The Index works with the company to achieve realistic and sustainable goals and can be customized to the company's requirement. Above all, the Inclusiveness and Accessibility Index shall promote human dignity and social cohesion where all citizens of the society have access to equal opportunities to fully realize their potential.
L to R: Surabhi Pant, Senior Assistant Director, FICCI; Rajiv Vastupal Chairman, FICCI – Gujarat State Council; Rajat Banerji, Chairman - Direct Selling Task Force, FICCI; Anukul Agarwal, Co- Chair, Direct Selling Task Force, FICCI; Bejon Mishra, Founder, Consumer Online Foundation and Consumer Protection Policies, Expert and Param Shah, Head – Gujarat State Council , FICCI.