DSI and entrepreneurship
panacea to unemployment
The much sought after white-colour jobs getting rare, self-employment is only panacea to unemployment menace, particularly in Arunachal Pradesh for lack of any large scale industry. The youths should join DSI and turn job givers by tapping vast natural resources of the state would herald a new ear. The GoAP could take a cue from Sikkim Govt which after skilling the youth with scholarship in Livelihood Mission Schools (LMSs) had turned them entrepreneurs in agri-horticulture, poultry & diary sector and floriculture in mid 2000 to end unemployment.
Sikkim’s unique model had impressed Agri, Horti, Animal Husbandry & Dairy Development Minister Setong Sena during visit in June 2012 to Sikkim, particularly Melli Dara GP Livelihood Mission School with agri-horticulture secretary Hage Kojeen, NYP president H P Biswas and myself, where then health minister Dawa Norbu Thakarpa had explained how 31 LMSs had ended Sikkim’s unemployment. Thus, Sena had set up CM’s LMS at Nampong run by NYP that has so far skilled 161 youths, including 72 girls, who have captured the agri-horti and poultry markets of Jairampur sub-division to end outside supply.
The CM’s LMS used to decorate speech of governor and CM in every national day, but file to clear outstanding payment of Nampong CMLMS got lost in GoAP official corridor.
* India’s figure to touch 1.8 crore by 2025: FICCI
By Pradeep Kumar
ITANAGAR, Mar 13: Any new face, like Tallo Yakup, is easily identifiable among very small media fraternity of Arunachal Pradesh. She appeared representing Capital News channel, but proved to be a girl with different attitude.
She has been a flyer even during schooling. She passed out class-X from West Bengal, classes-XI & XII from Uttarakahand and chose Hyderabad, the safest city for women in India, to pursue her bachelor in pharmacy. Though her result is expected, but she has jumped into media to learn while working for direct selling industry (DSI), a women’s bastion globally.
Responding to questions, she said that my horizon opened up after joining DSI, the largest employing industry globally involving 327 companies in India till October 29018. Thus, instead of being a pharmacist, I prefer to continue as no certificate is needed for DSI. Delhi University has introduced courses in network marketing too, she added.
Her quick-wit was proved with little research as she is among India’s 53% and among 27 lakh women of total 51 lakh persons globally engaged in DSI, World Federation of Direct Selling Associations (WFDSA) reported in 2017 and termed DSI.
The DSI, excitingly growing fast across the country, provides companies alternative channels for distribution and sale of their products and/or services directly to customers through a non-store retail format, Times Now reported on 05.09.18.
The growth of DS companies (DSCs) due to boom in e-commerce and rising smartphone adoption are arguably upsetting direct-sales business model and set to generate nearly two crore jobs in India by 2025. The DSCs, like Amway, Tupperware, Oriflame, Herbalife Nutrition and others employ approximately 50 lakh people in India. This figure is expected to touch 1.8 crore by 2025, according to a joint study by industry body Federation of Indian Chambers of Commerce and Industry (FICCI) and consulting company KPMG. The DSCs’ distributors, like Flipkart & Amazon, are selling items online through retailers to upset direct-sales business model.
A separate study, by ASSOCHAM released in January 2018, said that the DSI may touch Rs 15,930 crore by 2021, but certain reforms are required for sustainable growth. The DSI has almost doubled to Rs 12,620 crore in 2016 since 2011. After the GoI issued new guidelines for DSI in 2016, the study recommended several reforms for implementing the guidelines at state level to ensure robust growth. Several DS firms hailed the guidelines, saying it would filter out fraudulent players and aid serious companies to grow.
“Our growth trajectory is supported by massive investments of around Rs 100 crore over next two-three years, which includes Rs 70 crore investment in R&D to bolster capabilities to support product innovations, Rs 10 crore in manufacturing for plant automation and power optimization, and Rs 20-30 crore in digital initiatives to connect with youth. Our strategy has evolved into a robust omnichannel with digital and offline outreach strongly integrated. Amway has invested more than Rs 600 crore in a world-class manufacturing facility in Nilakottai, Dindigul district, Tamil Nadu in 2015, as part of its Rs 1,000 crore investment in India,” Amway India CEO Anshu Budhraja optimistically said about Amway’s DS growth prospects.
“The MLM is a much-debated sales channel in India. While with huge unemployed youth at one end and a huge aspiration for adding a multiplier effect to income for employed middle class, the MLM promises to have a huge growth opportunity. But it should be made clearer to the people. A regulation to preserve the end user rights, like a refund to unsatisfied consumers, clarity on efficacy of products and services etc. is going to help the growth without prejudice,” explains Gurugram’s Great Lakes Institute of Management associate Prof Anirban Chaudhuri.
Consumer health products closely followed by beauty and personal care items dominating sales in DSI in India now. Besides, healthcare category and wellness segment witnessed significant growth year on year, the report mentioned.
“The DSI is popular because of unique products are being offered to consumers at their doorstep. These products are normally demonstrable and their uniqueness is explained in detail to the consumers at home. These products are information based for which bulk of the industry is focused on unique products in not only beauty, but also the wellness segment. Today 80% of products sold through DS and MLM are beauty and wellness products because of their uniqueness. An increasing number of consumers are buying wellness products worldwide through the DS route and a similar trend is being witnessed in India too,” VLCC Wellscience CEO Lajinder Bawa said.
“Presently, DS is facing challenges at multiple fronts as fly-by-night operators, who operate under the garb of DS, have mushroomed to every part of the country. The DSI is also facing a stiff challenge from e-commerce companies which offer to sell products directly at higher discounts than direct sellers. Such a scenario affects motivation of direct sellers, who often discontinue their business, says Indian Direct Selling Association (IDSA), an apex industry body, GM Ankit Shukla.
Budhraja said that Amway has opted for ‘digital first’ approach globally as well as in India, with focus on engaging youth. “Our online presence on e-commerce platform currently contributes almost 35% to Amway India’s revenues. We expect our revenue to rise significantly in future. We also launched preferred customer program (PCP) to cater to those who wanted to just consume our products, but not make it a business. These people can now buy products directly from our website or from our stores. The PCP allows one to choose a direct seller if the customer is already in touch with one, protecting established and valuable relationships. Otherwise, Amway assigns a direct seller so that the customer can be serviced appropriately in future if they desire,” added Budhraja.”
Shukla further added that DS has witnessed a significant growth in 2017t fiscal and the IDSA is looking forward for some regulatory reforms from the GoI bolster confidence of the direct sellers and further strengthen the DSI.
“India has an amazing growth story. The rising affluence of middle-class consumer and ease of online shopping has created a progressive shift in spending patterns. Based on our experience and growing business in India, we see that new Indian consumer’s shopping decisions are aimed at aspiring lifestyle — high-quality brands, international vacations, luxury products. They are also much more conscious about health and wellness compared to past generations. Social media is also playing a role in how people want to be perceived or fit in with their peers,” Kuna added.