Direct-selling business to grow by 72%

Direct-selling business in India is expected to grow by a staggering 72% to touch Rs 7,100 crore by 2012-13 , on the back of increased consumer spending and change in lifestyle, according to a report.

According to Indian Direct Selling Association and Ernst & Young, which prepared the report, the sector registered a growth of 24% to Rs 4,120 crore in 2009-2010 from Rs 3,330 crore in 2008-2009 .

IDSA member companies include Amway, Oriflame, Tupperware and Modicare. “An increase in consumption of consumer goods by the average Indian, coupled with the rising awareness of health and wellness among Indian households is a key growth driver,” it said.

The survey also noted that metros and tier II and other cities now contribute equally to the overall market.Health remains the leading category by value with a 47% share of the overall revenues of the sector emanating from it, up from 32% last year.