The year 2022 brought back some semblance of normality to businesses, economies, and markets as they slowly transitioned into the pre-pandemic status. Despite challenges, the economic recovery was steady, backed by increased investments in key sectors and a well-thought-out strategy roadmap to leapfrog the industry. This also translated into the growth of the direct selling industry, which displayed immense resilience during the pandemic and continued to soar even in the face of adversity. According to a FICCI-KPMG report, the industry is expected to touch Rs 645 billion by 2025, backed by the fact that over 16 percent of direct sales companies registered growth in the past five years; and this number is expected to rise in the future. 

Direct selling has a promising future in India as the desire for financial independence continues to grow and consumer aspirations rise. As the industry is on a positive trajectory, here are some key trends that could redefine direct selling in India and chart out a growth path for the industry in 2023: 

Customer Experience and Personalization: In today’s fast-paced world where consumer trends evolve constantly, customer experience management is key for any B2C business. It is focused on creating and delivering personalized experiences to achieve not just customer loyalty, but also help a brand grow through word-of-mouth, which is still the best form of advertising. In direct selling, the emphasis on the customer experience is the cornerstone of every effective plan. Regardless of a referral program, one can create compelling customer experiences that turn clients into raving fans by delivering pure ‘WOW’ to every client one meets. Utilizing customer experience through fundamentals of personalization like customized product recommendations and shopping navigation is leading businesses along a new path of client acquisition. Customer experience is more important for direct selling because they also compete with online retailers and should equip their representatives with the tools necessary for better customer service and support.

Compelling Content: There is a vast amount of content that is published online, and as a referral marketing business, one needs to ensure that content can withstand the particular and finicky algorithms of each social media site. The goal is to produce engaging content that speaks to one’s target audience and to ensure that it gets to them. One thing is certain; today, attention is valuable. This approach will help a direct selling business build an audience by publishing consistent content that creates awareness of not just the brand but also inspires target consumers to make better and more conscious buying decisions. Since direct selling is a business built on trust, one must look at content marketing to establish a connection with customers so that the brand does not feel like a stranger to them.

Training: Direct-selling businesses have a diverse group of representatives in the workforce, which includes people of all ages, backgrounds, geographies, and education. Therefore, it is important that the training program offered to them takes into account all factors and may even present a requirement for customized training. Since these representatives drive the business, they are expected to stay one step ahead and must be updated on key trends, industry happenings, the company, as well as the growth plan. Post-pandemic, digital engagements have also increased, and the training must consider this as crucial to expand the network and achieve sales targets.

Focus on Tier II and III Cities: With high rates of internet penetration and mobile access even in the remotest of towns, consumer awareness has increased, and they look for variety and quality in their purchases. There is rising brand consciousness among people living in tier II and III cities as well as in rural areas. This has opened a host of opportunities for the direct selling industry in tier II and III cities, which is in the right position to meet the demand coming from these areas. As the demand continues to grow, there will be an increase in the number of products sold through the direct selling channel while maintaining good quality at reasonable rates. Focusing more on the agricultural communities may increase rural incomes and improve future growth possibilities for direct-selling businesses. The direct selling businesses also give an opportunity for people living in tier II and III cities to nurture their networking skills and give women a chance to gain financial independence.

Digitalization: The business model of direct selling is unique due to the connection between the company and independent representatives and the end customers. The role of technology will assist direct selling companies to strengthen their business outcomes by leveraging their culture, technology, digital footprint, messaging tactics, sales operations, and customer service strategies to reach even more people – customers and independent representatives successfully. 

The direct selling industry has the potential to create a significant social and economic impact in India, especially in the area of women’s empowerment, skill development, digitalization, and growth of the SME sector, besides promoting self-employment and providing a viable means of alternative income. As it continues to grow, the consequent emerging trends will become crucial for businesses to thrive and prosper in this sector. Direct selling holds significant promise in the future and these trends will continue to chart its growth trajectory.