8/8/2018 Assocham urges govt to adopt direct selling guidelines | Deccan Herald

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Assocham urges govt to adopt direct selling guidelines

Uma Kannan, DH News Service, Bengaluru,

JUL 26 2018, 21:19PM IST | UPDATED: JUL 26 2018, 21:21PM IST

The global direct selling industry in 2017 generated $189.6 billion in retail sales.

Industry body Assocham has asked the Karnataka government to facilitate speedy
implementation of the Centre's guidelines on Direct Selling.

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8/8/2018 Assocham urges govt to adopt direct selling guidelines | Deccan Herald

In September 2016, the Centre had issued the Model Framework for Guidelines oninDirect
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Selling, and seven states including Chhattisgarh, Sikkim, Telangana and Andhra Pradesh have
adopted it.

According to the model guidelines, a direct selling entity shall not use misleading, deceptive or
unfair recruiting practices, including misrepresentation of actual or potential sales or earnings,
in their interaction with prospective or existing direct sellers, and it shall have an office with
identified jurisdiction of its operation in the state, among others.

"We have got a positive response from the Karnataka government," Vijay Sardana, chairman of
Assocham Task Force on Direct Selling, said.

Assocham conducted a regional conference on Promoting Direct Selling for Developing

Entrepreneurship and Job Creation in the city and stakeholders exchanged views and spoke
about the socioeconomic benefits of direct selling and the need to implement these guidelines.

"Karnataka is the fourth largest market for direct selling after Maharashtra, Tamil Nadu and
West Bengal. There is a huge market and opportunity for entrepreneurs out there," said David
Stanley, MD of Healux.

According to World Federation of Direct Selling Associations (WFDSA), about 117 million
people around the world are involved in this industry, out of which 74% were women. In India, of
5.1 million people involved in direct selling, 60% of them are women. The sector generated $1.5
billion sales in FY18.

The global direct selling industry in 2017 generated $189.6 billion in retail sales.

"Both India and China have 5.1 million and 5.3 million people, respectively, who are involved in
direct sales. In China, sales worth $35 billion are generated. Countries like South Korea and
Japan, among others, too have a very significant sales numbers," Zaheer K Merchant, Director
- Corporate Affairs of Qi, said.

According to the Indian Direct Selling Association (IDSA) survey, Karnataka generated annual
sales of Rs 800 crore. The market share of Karnataka in total direct selling sales, which is
valued at Rs 10,342 crore, is 7.81%.

A FICCI-KPMG report in 2017 projected the retail sales in direct selling to reach Rs 64,500
crore by 2025.

Rajesh Kumar, MD of Glonutra Corporation, pointed out that the industry can generate both
direct and indirect employment opportunities and can create many young entrepreneurs.
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8/8/2018 Assocham urges govt to adopt direct selling guidelines | Deccan Herald

All stakeholders pointed out the challenges that encompass a widely misconstrued
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model due to lack of a proper regulatory framework, and they hoped that the Karnataka
government would soon adopt the guidelines.

Assocham Direct Selling

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Uma Kannan, DH News Service, Bengaluru,

JUL 26 2018, 21:19PM IST | UPDATED: JUL 26 2018, 21:21PM IST

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