The History & Future of Direct Selling

Sneha Batra
3 min readFeb 25, 2021

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I have always talked about how direct selling is one of the best business opportunities today if you are looking to achieve financial independence and how bright a future that it has in India. So, I think that it is high time that we talked about the history of the widely successful industry.

The very beginning

In a sense, direct selling has always been the major means of selling and buying goods in the past. Farmers and artisans sold their products directly to people who wanted to buy them, and there was no middleman. In fact, one of the points in the world-renowned historical record called the Code of Hammurabi was regarding the protection and welfare of peddlers or Babylonian direct sellers.

Coming back to the modern age, the concept of direct selling as we know it began in 1855 when Rev. James Robinson Graves came up with a business model where men went from door-to-door to sell their products. This business model was further worked on and improved on when David Hall McConnell Sr. and Alexander D. Henderson signed the agreement of the Corporation of the California Perfume Company in the state of New Jersey. The company they created had a few name changes in the past, but today we know it as Avon Products.

David Hall McConnell has had a great impact on how direct selling companies work and has also indirectly helped in many social changes. In fact, his decision to employ women as salespersons for his company did not only helped his business to become one of the global leaders in the future, but it was also one of the first time that women were given legitimate and permanent employment opportunity.

Direct selling in India

The direct selling industry in India took roots in 1982 with the establishment of Eureka Forbes. As the industry grew, more and more global players began to see the potential in the market. In 1995, Amway became the first major international company to make its presence known in India, followed by others like Avon, Oriflame and Tupperware. At the same time, Indian direct selling companies like Modicare began to adopt the direct selling business model.

Top direct selling companies in India

India is home to many top direct selling businesses in India. These include companies from outside the country like Amway and companies that has been founded in India, like Modicare and Vestige Marketing Pvt. Ltd.

The top 5 direct selling companies currently operating in India are

  1. Amway India Enterprises Private Limited
  2. Vestige Marketing Private Limited
  3. Mi Lifestyle Marketing Global Private Limited
  4. Oriflame India
  5. Hindustan Unilever Limited (HUL)

The Future of Direct selling

The direct selling network marketing business has a bright future in India. Based on the reports from KPMG and FICCI, the industry is expected to grow to over Rs 645 billion by 2021. These figures have been arrived upon after taking into consideration that the direct selling business has grown over 16% in the last year. This is only fastened by developments caused by the COVID19 pandemic and how the direct selling industry has helped people to find employment and business during these tiring times.

In many developed countries like the UK, Japan and the USA, direct selling is a significant means of income and has contributed to the growth of their economy. Such a drastic impact is yet to be seen in India. However, it is also inevitable. It is always better to be ahead of the curve and to cultivate the necessary experience and knowledge before the industry solidifies its presence in the country.

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Sneha Batra
Sneha Batra

Written by Sneha Batra

Just a small town girl lost in the whole wide world. trying to find a path and be who she is meant to be.

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