What is direct selling and which are top direct selling companies in India? Details here

Central government on Wednesday banned direct selling firms from promoting pyramid and money circulation schemes. companies that operate on se business models have been asked to ensure compliance with rules within 90 days. 

As per Consumer Protection (Direct Selling) Rules, 2021, companies will be liable for grievances arising out of sales by ir direct sellers. new rules are to be complied with by both direct selling firms and direct sellers using e-commerce platforms for sale.

What is direct selling?

Direct selling is a business model in a n-retail setting like at home, online or or venues, where people sell products or services directly to end customers. In this model, distributors earn income by selling products to end customers. Direct sellers can also appoint ors to join ir sales team to increase ir sales potential.

main models in direct selling are single-level marketing and multi-level marketing. In single-level marketing, direct seller makes money by buying products from manufacturer and selling m directly to end customer. In multi-level marketing, also called network marketing, direct seller can earn money bo both direct sales and by sponsoring a new direct seller to earn a commission.

Modern direct selling includes sales made through one-on-one demonstrations, party plans and internet sales. party plan sales mean garing a group of potential customers toger and presenting product to m.

Top direct selling companies in India

Amway, Oriflame and Tupperware are among key players in direct selling industry in India. Some ors are Vestige, Avon, Modicare, RCM, Herbalife, Keva Kaipo Industries Pvt. Ltd, Mi Lifestyle Marketing Global Private Limited, Asclepius Wellness Private Limited, Atomy India and Forever Living Products. 

Meanwhile, Centre has asked state governments to set up a mechanism to monitor or supervise activities of direct sellers and direct selling entities. 

"Both direct sellers as well direct selling entities using e-commerce platforms for sale shall comply with requirements of Consumer Production (e-Commerce) Rules, 2020," government said.  direct selling companies will additionally need to provide details of goods y are selling, prices, return and after-sale service.

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