MLM News

NetworkingEye.com: MLM News, MLM News in Hindi, MLM business, MLM Companies, Scam Companies

  • Home
  • हिन्दी MLM News
  • Scam Companies
  • Guest Post
  • Submit An Article
  • Submit Press Release
  • Advertise
  • Contact
Direct Selling in India

Direct Selling in India: An Overview of the Industry and its Regulatory Framework

By Ak Sharma | Published on 5:19 PM

5/5 - (1 vote)

Direct selling is a business model in which products are sold directly to consumers, usually outside of a fixed retail location. This business model has gained popularity in India in recent years, with many companies choosing to adopt it as a way to reach out to customers and sell their products.

The direct selling industry in India is regulated by the Direct Selling Guidelines 2016, which were issued by the Ministry of Consumer Affairs. According to these guidelines, direct selling refers to the marketing and selling of products or services, including those of consumer durables, cosmetics, health and wellness products, and others, directly to consumers, away from a fixed retail location.

There are several advantages of direct selling for both companies and consumers in India. For companies, it is a cost-effective way to reach out to customers and promote their products. It also allows them to gather valuable customer feedback and insights, which can be used to improve their products and marketing strategies.

For consumers, direct selling offers the convenience of being able to purchase products at a time and place that is convenient for them. It also allows them to learn about the products directly from the salesperson, who is usually well-trained and knowledgeable about the products.

There are several types of direct-selling business models in India, including single-level marketing, multi-level marketing, and party plan. In single-level marketing, a salesperson earns commissions on the products that they sell directly to consumers. In multi-level marketing, a salesperson not only earns commissions on the products that they sell but also on the sales made by their downline, i.e. the people they recruit into the business. In the party plan model, products are demonstrated and sold at a party hosted by the salesperson.

There are several direct-selling companies operating in India, including Amway, Herbalife, and Avon. These companies offer a wide range of products, including personal care, home care, and wellness products.

Despite the popularity of direct selling in India, it has also faced some challenges. One of the main challenges is the lack of awareness among consumers about the industry and its regulatory framework. This has led to instances of fraud and misrepresentation by some companies and salespeople, which has given the industry a negative image.

To address this issue, the Direct Selling Guidelines 2016 mandate that all direct selling companies must register with the Central Government and comply with certain guidelines. These include having a minimum capital requirement, disclosing information about the company and its products to the consumers, and maintaining proper records of sales and distribution.

In conclusion, the direct selling industry in India has experienced significant growth in recent years, due to its cost-effective and convenient business model. While there have been some challenges, the implementation of regulatory guidelines has helped to improve the image of the industry and protect the interests of both companies and consumers.

  • Tweet
  • Click to share on WhatsApp (Opens in new window) WhatsApp
  • More
  • Click to email a link to a friend (Opens in new window) Email
  • Click to print (Opens in new window) Print
  • Click to share on Telegram (Opens in new window) Telegram

Related

Filed Under: Featured, MLM Law India, MLM News [jetpack_subscription_form title="SUBSCRIBE TO Networking Eye - MLM News " subscribe_text="Sign up for our newsletter and receive news, updates, and the latest alerts." subscribe_button="Sign Me Up" ]

Leave a ReplyCancel reply

LATEST NEWS

  • Top 5 Fastest Growing MLM Companies in India 2023: Vestige, Amway, Herbalife, Forever Living, and Modicare
  • Navigating the Maze of MLMs in the Beauty Industry: What You Must Know
  • In Hyderabad, scammers involved in Multi-Level Marketing schemes are specifically targeting women and job seekers
  • Elfin E-com’s Absconding Executive, Involved in Multi-Crore Fraud, Apprehended
  • QZ Asset Management Executes Full Exit Scam; Website Unreachable

TRENDING TODAY

  • Gautam Bali: The Successful CEO Behind Vestige Marketing Private Limited's Growth
    Gautam Bali: The Successful CEO Behind Vestige Marketing Private Limited's Growth
  • Top Direct Selling Companies
    Top Direct Selling Companies
  • Top 400 Earners Network Marketing (based on earnings per month)
    Top 400 Earners Network Marketing (based on earnings per month)
  • IDSA & Members Seeking Cilarity on MLM Regulations
    IDSA & Members Seeking Cilarity on MLM Regulations
  • Investors Duped Out of INR 200 Crore after Being Lured by Endorsements from Actresses Tamanna and Kajal Agarwal
    Investors Duped Out of INR 200 Crore after Being Lured by Endorsements from Actresses Tamanna and Kajal Agarwal
  • All You need To Know About Vestige
    All You need To Know About Vestige

COMMENTS

  • Navigating the Maze of MLMs in the Beauty Industry: What You Must Know » MLM News on Things to Know Before Investing In MLM
  • Navigating the Maze of MLMs in the Beauty Industry: What You Must Know » MLM News on Direct Selling sector as a retailing medium in India is yet to gain momentum
  • Navigating the Maze of MLMs in the Beauty Industry: What You Must Know » MLM News on Decriminalization of MLM: its Importance and Issues
  • QZ Asset Management Executes Full Exit Scam; Website Unreachable » MLM News on Beware of these MLM companies
  • Rajan Menon on CID taking Interpol help on Speak Asia Alleged Scam

Copyright © 2014–2025 · NetworkingEye.com

About Us · Privacy Policy · Cocky Policy · Terms & Conditions