Cosmetic Direct selling industry growth
According to the Indian Direct Selling Association, the turnover for
2004-05 was about Rs 2,700 crore with the growth rate being sustainable
at this point.
At present, the majority of products sold
through this route are from the home and personal care segment, largely
because customers prefer personalised suggestions on what products
would specifically suit them.
Tomas Erikson, managing director,
Oriflame India, said, "Within direct selling, the cosmetics and
toiletries market has grown at 11 per cent, and with increasing
awareness and aspirational levels, we will become more aggressive about
our plans in India."
At Amway, cosmetics and Nutrilite - the
wellness brand - account for 60 per cent of its total sales. Hindustan
Lever, too, has taken its Ayush brand off the store shelves and has
made it part of Hindustan Lever Network, its direct selling channel,
through which it also markets Aviance - a range of high-end skincare
products.
Companies are pretty happy at the way the market is
growing in India, not only for personal care products but also the
likes of insurance and crockery products.
Sanker Parmeswaran,
director - legal and corporate affairs, Amway India Enterprises, said
Amway planned to expand its distributor base by 20 per cent in India
and establish its presence in more than 2,500 cities by the end of the
year.
The way ahead for companies, he said, would be to grow the network through the distributor base as well as newer products.
The
ability to penetrate deeper through 'words of mouth' is a big positive,
going forward, and is likely to result in sustainable growth for the
companies operating in this sector.
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