Cosmetics direct selling industry growth
The still nascent domestic direct selling market gradually seems to be
taking off, with the industry posting a growth of 18 per cent in the
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.
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.
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.
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.