Direct selling: Empowering youth and women

A sustainable approach toward development has emerged as a pioneering concept in today’s world, recognising the need to balance current demands with the ability of future generations to sustain their livelihoods. Different sectors, organisations, and individuals are increasingly recognising the importance of sustainable growth. The Indian government has also shown its commitment to this approach, aiming to create a more equitable, resilient, and prosperous future. Structural reforms and programmes like the Skill India Mission, Atmanirbhar Bharat Abhiyan, and Mudra Yojana contribute to an inclusive environment, generating greater opportunities for employment and entrepreneurship.

Direct-selling has emerged as a powerful catalyst for empowering youth and women, driving sustainable economic growth. Referencing to a recent report, direct-selling industry has grown 8.3% compound annual growth rate (CAGR) in the four-year period between 2019-20 and 2022-23, with a year-on-year growth of 12% in 2022-23. It has consistently shown great potential and presents a good option for personal and financial growth. The sector is known for its numerous benefits, empowering individuals to embark on their entrepreneurial journey. Its popularity stems from characteristics such as having low entry barriers, inclusivity, and flexible working hours, that attract individuals and enable them to balance their professional and personal commitments efficiently.

It’s the direct-selling industry offers a low start-up cost, that makes it accessible to a wider audience, including those who may lack the financial resources to start a conventional business. Additionally, it provides flexibility, allowing individuals to work part-time or full-time, depending on their personal circumstances and goals. This is particularly beneficial for women, who often juggle multiple roles and responsibilities. As more people embrace this business model, they contribute to a more inclusive, resilient, and sustainable economy. The continued support and promotion of direct-selling can unlock even greater potential, building a future where everyone has the opportunity to thrive.

Empowering youth and women is crucial for sustainable development across all sectors. Leaders have recognised its significant impact on the country’s socio-economic ecosystem and the pivotal role it plays in paving the way for financial independence and self-reliance. Despite a large youth population, unemployment remains a pressing issue. Direct-selling provides a viable solution by offering young people an opportunity to earn an income, develop entrepreneurial skills, and gain valuable business experience. Women, especially in developing countries like ours, often face barriers to economic participation, including limited access to education, financial resources, and employment opportunities. Direct-selling serves as a powerful tool for women's empowerment by enabling them with the means to achieve economic independence. It recognises their potential and encourages a journey of self-reliance and financial autonomy.

The rise in conscious consumerism has led organisations and individuals to prioritise sustainability within the current economic landscape. This shift is driving the adoption of ethical practices, fair compensation, transparency, consumer protection, and eco-friendly sourcing, essential for fostering a more sustainable direct-selling environment. Indian direct-selling companies are now seeking unique and natural products that meet the needs of their audience while incorporating sustainable practices. As a result, eco-friendly packaging, responsible sourcing, and energy-efficient operations are becoming critical for catering to today's mindful customers. Achieving sustainable growth through environmentally friendly practices, inclusivity, and economic development is the ideal state every industry aims to reach. By incorporating these practices into their operations, organisations are building a more trusted environment while also creating a vast loyal customer base. Additionally, upholding the highest standards of honesty and fairness in all aspects helps build trust and loyalty within the industry. This further positively impacts the lives of people associated with it. In India, homegrown direct-selling companies have been leveraging their market position to empower individuals by providing entrepreneurial opportunities complemented with training, workshops and skill development. They are dedicated to creating a platform where individuals, irrespective of their gender or age can gain financial independence, leading to sustainable growth and development.

While direct-selling offers numerous benefits, it also faces challenges like market saturation, and the potential for unethical practices. Despite significant progress in regulatory reforms, achieving sustained growth requires effective implementation by the government and industry associations. Establishing clear regulations and guidelines to protect consumers and sellers, ensuring transparency, maintaining product quality, and promoting ethical marketing are essential. Providing education and training in sales techniques, financial management, and ethical practices can further empower direct sellers to succeed. Companies must uphold ethical standards, ensuring honest marketing, fair pricing, and consumer respect. This approach will not only enhance the market structure but also drive productivity and sustainable growth. Additionally, continuous innovation and adaptation to market changes through technology, new product categories, and market expansion are essential.

The efforts of Indian direct-selling companies are evident in their rising global presence. Despite facing challenges from the pandemic and e-commerce competition, the industry has demonstrated remarkable resilience and growth. This success reflects the industry's adaptability to changing market dynamics, commitment to innovation, and focus on empowering individuals in evolving economic environments. By embracing sustainable practices, the Indian direct-selling industry is not only overcoming market challenges but also paving the way for sustained economic growth, leading to transformed lives and a brighter, more inclusive future for all.

This article is authored by Gautam Bali, MD and founder, Vestige Marketing.