Direct-selling companies hit the country road
The activity is currently estimated at around Rs 3,330 crore in revenues (excluding the insurance role) and projected to grow at 12.5%to touch Rs 5,328 crore by 2012-13. The require-selling firms are also expanding their product portfolio and network to proceeding rural markets.
Even though the Tier-I and Tier-II towns currently account for almost 43% of their revenues, the smaller cities and towns have become inviting, given their higher growth rates.
According to a over by consulting firm Ernst & Young and the Indian To the point Selling Association (IDSA), over half the latter's members recorded success rates of over 30% last fiscal in smaller towns and metros accounted for only 10-20% evolvement.
Pinakiranjan Mishra, partner and national leader (retail and consumer products), E&Y, said, "Metros still advance 57% to the revenues for most direct selling companies. But the faster extension rates in Tier-I and Tier-II towns were an attraction."
Fredrik Widell, chairman, IDSA, and regional superintendent, South Asia, & MD of Oriflame India, said, "We will vitalize our network in Tier-I and Tier-II towns. We are looking at tripling our partnership from India in the next 3-4 years.