Network Marketing in India 2024.
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Posted On: 1st Mar 2024 05:06
2024: Network Marketing in India
People are so intelligent that they examine the development of network marketing in India as well as its history and statistical report. to understand the history and prospects of the network marketing industry by 2021.
The recession in India has had a significant impact on the number of creative entrepreneurs choosing to pursue Network Marketing, or MLM, as a lucrative and expansive business model.
In India, the primary focus of the network marketing industry is on providing easy and accessible ways for people to make money.
The state of MLM, or direct selling, in India right now is encouraging and bodes well for the sector's future.
India is still lagging behind other developing nations in terms of fully accepting multilevel marketing. The MLM deception that underpins the network marketing industry is the only explanation for this. The Indian economy is negatively impacted by scams, however, these days, measures are implemented to eradicate multilevel marketing schemes.
This article will examine the expansion of the network marketing industry in India in 2024.
To provide a clear image of the future or growth of the network marketing business, we will first take a brief look at the history or evolution of the MLM industry before examining the prospects for network marketing in India.
History of Direct Selling –
- In 1886-MLM business evolved in the USA during the year 1886 with the establishment of Avon.
- In 1925– During this year, the direct sales volume increased to around 300 to 500 million USD.
- Between 1940 and 1960– Many companies emerged based on the concept of multi-level marketing or network marketing.
- In 1970-New products were focused on widening the MLM business. Product categories like wellness products, household products, and food items started evolving to attract potential customers.
- Between 1990 and 1996-Many major MLM companies like Avon, Amway, and Tupperware extended their service globally to build massive customers for their MLM business. They started their MLM business in India, Korea, and China.
- This is how MLM business enters India. Now we will look into the growth of network marketing in 2024 in India by analyzing the ups and downs of the previous years.
Scope of Network Marketing In India 2024 –
One of the earliest and most established methods of selling goods at multiple levels and building a large network of contacts to advertise the company is network marketing. Due to the enormous scale of the market, it is now the best industry to operate in more than 100 countries and remain profitable. that is, almost USD 167 billion.
In terms of benefits realized, the direct selling sector in India appears to be promising. Yes, in comparison to 2011, that has nearly doubled in 2016. It is clear from the Assocham research that in 2021 it will surpass the record of approximately 159.3 billion. Each person's average sale is rising and now comes to approximately $300 each year.
The report also shows that network marketing companies can create a contributing platform to grow their MLM business in India and have plenty of room for marketers.
According to the report, throughout the years 2015 and 2016, the MLM business moved up the rankings from 22nd to 20th. China, Korea, and the United States were the top three markets in those years.
Between 2015 and 2016, global sales volume reached a record $183 billion. Many people began signing up for multilevel marketing businesses. Roughly 80% of all nations in the globe began participating in multilevel marketing.
Despite consistent growth over the years and benefits that have increased the value of the Indian economy, the numerous programs that have been implemented in India have made multilevel marketing less acceptable in the country. To survive this network marketing industry, many network marketing plans occasionally require significant financial outlays. In India, people fell victim to dishonest network marketing scams, losing money on their multilevel marketing ventures.
According to a survey carried out in 2015 and 2016, over 50,000 people profited from the multilevel marketing opportunities provided by direct selling organizations. The characteristics and expansion of the network marketing industry in India were aided by several government initiatives, including Digital India, Made in India, and Skill India.
Numerous policies and guidelines can be adopted at different levels to promote the growth of network marketing organizations. The MLM industry will benefit from policies like the consumer protection bill and the FDI (foreign direct investment) policy.
Future of Network Marketing in India 2025 -
With the above records, it is estimated that the Network Marketing turnover in India will reach a pinnacle of INR 645 billion by 2025. It has also impacted various social and economic factors.
#1. Passive Income Opportunities:
Network marketing business will offer opportunities for its massive customer base to earn passive income and micro-entrepreneurship is promoted. It is estimated that around 5 million distributors are engaged in the MLM business to earn passive income.
#2. Established Women Empowerment:
During the year 2013, it is estimated that it employed around 3.4 million females as distributors of MLM business. Network Marketing business opens up the space for women's empowerment and establishes a strong future for women to balance their time and work more effectively.
#3. Opportunities for SMEs:
Direct selling companies come up with the launch of new products and depend on the SMEs to enhance the features of their products. This provides opportunities for SMEs. the companies invest in the right SMEs to promote their MLM business with the new products.
#4. Enhanced Employment Generation:
As we have already seen it provides passive income for marketers, and it also provides employment opportunities for a large number of people. Most of the time MLM companies interact with various vendors to accomplish operations like packaging and distribution.
#5. Initiated Social Responsibilities:
Network marketing companies are outstanding in supporting social responsibilities. The projects carried out by some significant MLM companies play a crucial role in resolving the social impacts.
#6. Contribution to the Government Sector:
Since the MLM companies generate a huge tax for the government. It helps in improving the Indian economy with its huge revenue. During the year 2013, the tax generated was around INR10 billion. It also contributes to direct and indirect taxes.
Conclusion -
From the above statistics and details, it is evident that the MLM industry has excellent potential to develop more success in the future of Network Marketing in India. It has impacted the social as well as economic parameters in India. It is estimated that it will reach around 159.3 billion by the end of 2021 and INR 645 billion by 2025. Easily we can conclude that the growth of network marketing in India is very promising.
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