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 04/01/2023

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
  • WhatsApp
  • More
  • Email
  • Print
  • Telegram

Related

Filed Under: Featured, MLM Law India, MLM News

SUBSCRIBE TO Networking Eye - MLM News

Sign up for our newsletter and receive news, updates, and the latest alerts.

Leave a ReplyCancel reply

LATEST NEWS

  • Elfin E-com’s Absconding Executive, Involved in Multi-Crore Fraud, Apprehended
  • QZ Asset Management Executes Full Exit Scam; Website Unreachable
  • IIT Kanpur Student and 5 Others Arrested in Thane for Cryptocurrency Fraud
  • Enforcement Directorate freezes 36 bank accounts with over Rs 90 crore in inspections at direct selling firms Qnet in Mumbai, Bengaluru, and Chennai
  • Top 5 Fastest Growing MLM Companies in India 2023: Vestige, Amway, Herbalife, Forever Living, and Modicare

TRENDING TODAY

  • Top 5 Fastest Growing MLM Companies in India 2023: Vestige, Amway, Herbalife, Forever Living, and Modicare
    Top 5 Fastest Growing MLM Companies in India 2023: Vestige, Amway, Herbalife, Forever Living, and Modicare
  • Top 400 Earners Network Marketing (based on earnings per month)
    Top 400 Earners Network Marketing (based on earnings per month)
  • Top MLM Companies of Network Marketing in India
    Top MLM Companies of Network Marketing in India
  • MD of QuestNet India, Pushpam Appalanaidu arrested
    MD of QuestNet India, Pushpam Appalanaidu arrested
  • Scam Companies
    Scam Companies
  • IBOtoolbox - A Free Business Marketing Platform For Independent Business Owners
    IBOtoolbox - A Free Business Marketing Platform For Independent Business Owners
  • Gautam Bali: The Successful CEO Behind Vestige Marketing Private Limited's Growth
    Gautam Bali: The Successful CEO Behind Vestige Marketing Private Limited's Growth
  • SCAM Companies New Updated list
    SCAM Companies New Updated list
  • Cases of Corporate Frauds/Chit Fund Scams Involving Companies
    Cases of Corporate Frauds/Chit Fund Scams Involving Companies
  • Karma has given you a Destiny
    Karma has given you a Destiny

COMMENTS

  • 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
  • Top 5 Fastest Growing MLM Companies in India 2023: Vestige, Amway, Herbalife, Forever Living, and Modicare » MLM News on John Oliver calls MLM industry a ‘pyramid scheme’
  • Top Direct Selling Companies » MLM News on Ponzi Schemes Vs direct selling companies
  • Decriminalization of MLM: its Importance and Issues » MLM News on Indian government to soon issue the guidelines for Direct Selling Industry

Copyright © 2014–2023 · NetworkingEye.com

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