Reporter story

IDSA on a move to educate in direct selling

Government need to address issues with regard to direct selling in India

L.Raghunanda
Bangalore

Government need to address the key important issue within direct selling and not to equate direct selling said Ms Chavi Hemanth, Secretary General to Indian Direct Selling Association (IDSA)

Further she said “What is the definition the government interested to give for those engaged in direct selling, we in IDSA request with government at earliest to give clarity of the definition, which so far has not been done.

Then in money back guarantee, there is ambiguity, that need to be addressed, government has no faith, let there be clarity and those so called “Fly-by-Night and those who operate Ponzi Scheme Operations to make fast money must brought to an end.

All those affiliated with IDSA work on principle of “cooling of period” meant, when “anyone become the member of the any of the business entity, which are working under direct selling principles must give back any money deposited by member or agent, who wished to become member.

“ But later gave up, because of disinterest, if the t company has borrowed any money from particular person, it will be returned by direct selling company, but what is the notion the government wishing to know from us is the question?

Chavi said our war of words with government is not new, but long and standing, government has so far not heeded, but “when it government has heeded to what some in retail market, even though there are not much clarity, is not there.

“We need to address it as lot of people who are into Direct selling business have suffered, when there are many companies from abroad have shown interest to have a pie in Indian direct selling market, regulatory framework is hindering them in entering, there is no clarity as such.

As far to direct selling in India, even though most of the companies in this business have spread tentacles, the government has put this companies under “test marketing” because the rules made under Foreign Investment Promotion Board

“And those made under Industrial Policy and Promotion wing of commerce ministry has come under scrutiny.

Direct selling market will become cash cow in India
Direct selling market registered growth of 24 percent in between year 2009-10, with a turnover of Rs 4,120 crores.

With unemployment youth number growing , direct selling industry is providing an unconditional employment “it will become cash cow in India, where those engaged in the business will reap the benefits.

“And why because India ranked 11th among the top direct selling countries in 2009-10, direct selling industry is expected to be Rs 7,100 crore by 2012-13 according to Indian Council for Research on International Economic Relations (ICRIER)

Well grounded reason for the direct selling market will grow in India as “Craze among everyone to buy the goods sold through direct sellers exit.

“And the craze to purchase the products coming with home, health and cosmetics products is high in urban India, more than in rural India, but given the product given in very economical rate, also from utility point of view suppose any kitchen product people will buy.
Purchasing Power Parity (PPP) of India is third largest in the world, by this year end, we will break the Japan record which has highest PPP s which is in second place, with US being in the first.

As of now the worldwide direct selling market is $ 14 billion, India share in just $1 billion, it has to increase says one report in Indian Council for Research in International Economic Relations (ICRIER) I benefits will has to be reaped released in February 2011.

About IDSA

IDSA which is affiliated to World Federation of Direct Selling Association (WFDSA) US,but IDSA has 18 members, companies both Indian and abroad for which it has been working for the cause of those engaged in direct selling.

Those 18 companies which are its members include Altos Enterprises Ltd. Ludhiana, AMC Cookware India Pvt Ltd .Bangalore.

Amway India Enterprises Pvt Ltd. Noida, Avon Beauty Products India Pvt Ltd. Gurgaon, CNI Enterprises India Pvt Ltd.Bangalore, CNI Enterprises India Pvt Ltd.Bangalore,

Daehsan Trading India Pvt Ltd. Delhi, Elken International India Pvt Ltd. Bangalore, Herbalife International India Pvt Ltd. Bangalore, Hindustan Unilever Network. Bangalore, Jafra Ruchi Cosmetics India Pvt Ltd. Delhi,

K.Link Healthcare India Pvt Ltd.Chennai, Mary Kay Cosmetics Pvt Ltd. Guragaon, Max New York Life Insurance Co Ltd. Gurgaon, Modicare Ltd. Delhi, Oriflame India Pvt Ltd. Delhi,Tianjin Tianshi India Pvt Ltd. Delhi, Tupperware India Pvt Ltd. Gurgaon, 4Life Trading India Pvt Ltd. Mumbai,