Direct Selling is a rapidly growing industry in India, and it has witnessed significant changes in customer spending patterns and trends in recent years.
According to a report released by the Washington-based World Federation of Direct Selling Associations (WFDSA), the Indian direct selling industry reported retail sales of USD 3.25 billion in 2021 (over Rs. 27 crore) and maintained 12th place in the global rankings. It also reported growth of 7.7 per cent in 2021 and had a CAGR of 15.7 per cent from 2018-2021. In 2023, the industry continues with its growth trajectory, and new trends are emerging in the way customers spend their money.
Let’s take a closer look at some of the key trends and customer spending patterns that are shaping the Direct Selling industry in India this year.
Focus on Health & Wellness
One of the major trends in the Direct Selling industry in India is the focus on health and wellness. Indian consumers are becoming increasingly health conscious and are willing to spend money on products that promote good health. As a result, there is a growing demand for natural and organic products that are free of harmful chemicals and toxins. Consumers are also increasingly looking for products tailored to their specific health needs and preferences.
Direct Selling companies in India are responding to this demand by offering a wide range of health and wellness products, including nutritional supplements, fitness equipment, and herbal/organic food products.
Localization & Regionalization
Direct Selling companies in India are recognizing the importance of localization and regionalization. India is a diverse country with multiple languages, cultures, and traditions. Direct Selling companies are adapting their products and marketing strategies to appeal to customers in different regions of the country. This trend is evident in the localization of product packaging, promotional materials, and sales strategies.
Customer Service & Support
Finally, the Direct Selling industry in India is placing a greater emphasis on customer service and support. Indian customers are becoming more discerning and demanding, and Direct Selling companies are responding by offering high-quality customer service and support. This includes the use of chat bots, customer service hotlines, and other tools to address customer queries and concerns in a timely manner.
Digital Transformation in the Industry
Direct Selling companies are investing in digital technologies to enhance their customer engagement and streamline their operations. This includes the use of social media, e-commerce platforms, and mobile applications to reach customers and offer them a seamless buying experience. The entire business ecosystem has now shifted to digital platforms, and it has brought convenience and ease for both direct sellers and companies.
The use of cutting-edge technology and digitization has also helped us reach consumers across India. It has shifted from door-to-door to screen-to-screen. Technology has saved the efforts, energy and time of the direct sellers to conduct their business. They can sell products online and receive profits transferred to their bank accounts.
Today’s consumers prefer to buy direct selling products online and get them delivered to their doorsteps, without the hassle of meeting & greeting the direct seller in person. With the upcoming AI and machine learning technology, business functions like product development, product customization and business promotions are expected to take a huge leap in the coming year, paving the way for numerous possibilities, in the direct selling industry.
Rise of Micro-Entrepreneurship
Direct Selling is a popular form of micro-entrepreneurship in India, and this trend is expected to continue in 2023. Indian consumers are increasingly interested in starting their own businesses, and Direct Selling offers a low-cost, low-risk opportunity to do so.
These companies in India are recognizing the importance of supporting their micro-entrepreneurs with:
- training
- marketing support
- and other resources
Consumers of direct-selling products in India continue to prioritize convenience, affordability and personalized experiences. They are attracted to direct-selling companies that offer quality products at fair prices with exciting offers. The customers are also shifting towards products that are customized to their requirements. Many players are already marching in the same direction, and they may continue to see strong sales growth in 2023.
In conclusion, the Direct Selling industry in India is witnessing significant changes in customer spending patterns and trends. The focus on health and wellness, localization and regionalization, digital transformation, the rise of micro-entrepreneurship, and customer service and support are all trends that are shaping the industry in 2023.
The writer is Chairman & Managing Director, Netsurf Communications Pvt. Ltd, a leading direct selling company in India that offers more than 90 natural and herbal products in 5 distinct categories i.e. Health Care, Personal Care, Home Care, Colour Cosmetics and Agriculture
