India is the 12th largest Direct Selling market globally with a sale of USD 3.01 Billion and has registered a 4-year CAGR of 18%, making it the 3rd fastest growing Direct-Selling market.
The impetus for the growth of the direct selling industry majorly came from the publication of The Direct Selling Guidelines in 2016, which subsequently were adopted by several states. In 2019, The Consumer Protection Act defined "Direct Selling" giving it much-needed legal recognition. In 2021, the rules regarding the Direct Selling industry under "The Consumer Protection Act" were notified and now governs the industry. (Consumer Protection (Direct Selling) Rules, 2021)
Indian Direct Selling Sales: Product categories (2019-20)
Fast Moving Consumer Goods category primarily dominates the sale in the Indian Direct Selling market. In 2019, the Wellness & Nutraceutical products contributed more than half of the Indian direct selling sales. Followed with one-fourth of the sales in the industry were of cosmetics and personal care products. The sale of these two categories combined contributed ~80% of the Direct Selling sales in 2019-20.
Our Offerings
The team at Yogi and Partners have been deeply involved in the Direct Selling Industry and to our credit the majority of the top direct selling companies operating in India are our clients. All the direct selling companies who have entered India since 2015 (establishment of Yogi and Partners), were either advised for their India-entry strategy by Yogi and Partners or those who did not come through us have since engaged our services as their preferred legal partner.
We have assisted our clients in setting up their businesses and expanding and conducting the already established business in compliance with Indian laws. We provide end to end tailor-made solutions to our clients and particularly: -
- Provide a comprehensive understanding of the legal framework
- A comprehensive review of the business plan and other corporate documents to check and bring them in compliance with the Indian law
- Provide strategic inputs to the clients for entry into the Indian market
- Guidance on capital structuring, product portfolio, location identification, human resource management and business partner analysis
- Company incorporation and compliances
- Product import and manufacturing support
- Registration and licences as required for operating the Direct Selling business in India