Top 4 Trends to Look Out for Direct Selling Business in 2022

What are the top 4 trends that the direct selling business should look for in 2022?


The catastrophe caused by the outbreak of the virus has plagued the businesses in India , not leaving direct selling business an exception to it. Despite the unprecedented challenges laid by the first wave, the vaccination drives brought an air of positivity and the industry remained resilient despite its own set of challenges. The sector according to the industry body IDSA has clocked a double-digit growth of 28.26 percent to Rs 16,776.2 crore in FY 2019-20 against Rs 13080 crore in FY 2018-19. The grim times of the second covid wave also could not deter the growth that made the direct selling business grow by 4.7 percent to touch a sales value of Rs 7518 crore. According to a joint report by the FICCI-KPMG report, the industry currently pegged at approximately Rs 16,000 crore is projected to become Rs 64500 crore by 2025. Here are some of the trends that direct selling businesses can expect in 2022.

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According to a joint report by the FICCI-KPMG report, the direct selling business is currently pegged at approximately Rs 16,000 crore is projected to become Rs 64500 crore by 2025.

The trends that a direct selling business can look for in 2022

  • An alternate source of income: There has been a loss of livelihood and paycuts in the pandemic, which made direct selling an alternate source of income for sustainability. According to a recent report by Indian Direct Selling Association (IDSA), the industry witnessed 53 lakh, new entrants, during April-September 2020 period. With no minimum qualifications, zero seed capital, and flexible working hours, direct selling became an alternate and popular source of income while handling a full-time job. Therefore, direct selling businesses will get more independent sellers.

  • More sellers from tier-II and III cities: Increase in disposable incomes and aspiring to live a better life is paving the path for demand and supply for direct selling business in smaller towns.IDSA in its annual survey has found Assam alone contributing for Rs 771.6 crore which is 47 percent of the total revenue of North East India’s direct selling market, which shows that the demand for tier 2 and 3 cities will grow and will present more business for direct selling businesses.

  • Digital adoption: Since it does not require any pre-requisite skills to become an independent seller, the use of digital or virtual tools or technology is alien to them, which is a challenge for businesses. Here are the four platforms that are underutilised by the businesses: 

  1. CRM system provided by the Company
  2. Resource sharing platforms such as Google Suite
  3. Meeting tools such as Zoom, Skype, etc
  4. Marketing platforms such as Facebook, Instagram, etc. 

Right now businesses must impart training on the usage of the platforms to their network of independent sellers. 

  • Good news for health and nutrition businesses: Health and immunity will assume greater importance and would witness traction. The first half of the pandemic hit 2020-2021 made sales of Rs 7518 crore, with most sales brought in by the health and nutrition businesses followed by cosmetics and personal care followed by household goods and durables segment. According to IDSA, 55 percent of the gross direct selling turnover comes from the wellness category. 

Thus, the direct selling business will be a fast-growing sector in times of adversity, the industry will be providing an alternate career to millions. Therefore, it will be a win-win situation for businesses to invest in training the sellers on social media marketing, usage of virtual technologies, etc. to increase customer base.

Shalmoli Sarkar
Shalmoli Sarkar
An MBA in marketing and a BTech in chemical engineering, Shalmoli writes on marketing strategies and business technology for new and aspiring entrepreneurs.

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