Gujarat’s Boom in Direct Selling: How More Than Two Lakh Business Owners Achieved Success
Newzdaddy Business Updates
The article’s summary in bullet points
With approximately 10% growth in the fiscal year 2022-2023, Gujarat’s direct selling business crossed the Rs 1,000 crore mark, marking a significant milestone.
According to the Indian Direct Selling Association (IDSA), Gujarat saw a company turnover of Rs 1,014 crore in 2018, up Rs 91 crore from the year before.
Gujarat is still the ninth-largest direct selling market in India and currently holds the second-place position in the Western region, right behind Maharashtra.
Over 2.1 lakh micro-entrepreneurs in Gujarat now have the opportunity to work for themselves thanks to the industry; women make up over 77,000 of these individuals.
The direct selling sector in Gujarat generates about Rs 150 crore in tax revenue for the state coffers and accounts for 4.8% of the country’s direct selling market, which is valued at Rs 21,282 crore.
The state minister for food, civil supplies, and consumer protection affairs, Sh. Kunvarjibhai Mohanbhai Bavaliya, emphasized fostering a business climate that is conducive to growth while defending the rights of consumers.
Along with highlighting the significance of guaranteeing product quality, the minister also stated current initiatives to set up a monitoring system under the Consumer Protection (Direct Selling) Rules 2021.
At the function, twelve female entrepreneurs who had achieved success in direct selling were honoured for their services to the Gujarati sector.
The Chairman of IDSA, Vivek Katoch, highlighted the industry’s contribution to sustainable self-employment while applauding Gujarat’s increasing prominence in the direct selling sector. By the Consumer Protection (Direct Selling) Rules 2021, Katoch also stated that ten states had already set up monitoring committees. She was certain that Gujarat would follow suit shortly.
Gujarat’s Direct Selling Sector Has Grown by 10% to Cross Rs 1,000 Crore Mark
Ahmedabad, Aug. 29, 2024: With a growth rate of about 10% in the fiscal year 2022-2023, Gujarat has crossed the Rs 1,000 crore company turnover threshold, marking a significant milestone in the direct selling industry. The Indian Direct Selling Association (IDSA) released these astounding figures as part of a survey study to highlight Gujarat’s rising stature in this sector.
Gujarat’s Remarkable Increase in Direct Sales
According to the IDSA research, which was written by KANTAR, Gujarat’s direct selling sector had a revenue of Rs 1,014 crore in 2022-2023. This shows a strong growth rate of 9.86% and is an increase of Rs 91 crore over the previous fiscal year. Gujarat is still the ninth-largest market in India but is currently the second-largest direct selling market in the Western region, right after Maharashtra.
This expansion highlights the robustness of Gujarat’s direct selling sector, which has grown to be an important industry for the state’s economy. Sales are not the only goal of the sector; it also involves fostering chances for independent work, skill enhancement, and socioeconomic advancement, especially for lower-class individuals.
Developing Gujarat’s Micro-Entrepreneurs
The direct selling sector in Gujarat is notable for its contribution to the empowerment of micro-entrepreneurs. Through direct selling, over 2.1 lakh people in the state have discovered prospects for self-employment; over 77,000 of these people are women. This demonstrates the industry’s capacity to generate stable incomes, particularly for women who are heavily involved in it.
Notable is the industry’s contribution to the state’s economy. Gujarat’s direct selling companies pay taxes totalling more than Rs 150 crore to the state coffers. Furthermore, the state’s portion in the national direct selling market, which was valued at about Rs 21,282 crore in 2022–2023, is 4.8%.
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The backing and dedication of the government to consumer protection
Sh. Kunvarjibhai Mohanbhai Bavaliya, the state’s minister for food, civil supplies, and consumer protection affairs, recently discussed the significance of the direct selling sector in Gujarat. He underlined that the government is dedicated to protecting consumer interests while fostering a business climate that is favourable to this industry.
In addition to mentioning that his department is working on building a monitoring mechanism in accordance with the Consumer Protection (Direct Selling) Rules 2021, the minister emphasised the significance of guaranteeing product quality for consumers. The purpose of these regulations is to safeguard customers against dishonesty and provide regulatory certainty to direct selling companies.
To better acknowledge the achievements made by women in this sector, the minister honoured 12 female entrepreneurs who had achieved great success in the direct selling industry. These women have not only succeeded in their enterprises but also served as role models for the community.
IDSA’s Future Prospects
The IDSA Chairman, Vivek Katoch, expressed his happiness with the development of the direct selling sector in Gujarat. He emphasised that Gujarat is a vital market for the direct selling sector and that the growth statistics are a direct result of the unwavering diligence of direct sellers throughout the state.
Katoch further mentioned that almost 86 lakh Indians nationwide now have viable options for self-employment thanks to the direct selling sector. The industry has grown steadily and consistently over the last four years, with a compound annual growth rate (CAGR) of over 8%.
He continued by saying that the Union Ministry of Consumer Affairs had introduced the Consumer Protection (Direct Selling) Rules 2021, which had provided regulatory clarity. Ten states have set up monitoring committees under these regulations thus far. Katoch expressed optimism that Gujarat will create its own monitoring body shortly, thus fortifying the industry’s regulatory structure.
Prospects for Gujarat’s Direct Selling Sector
The direct selling sector in Gujarat is expected to expand even further in the upcoming years. The state is well on its way to being a leader in the direct selling industry with the government’s ongoing backing and the unwavering efforts of direct sellers. The industry’s emphasis on giving women, in particular, the chance to work for themselves will be vital to the socioeconomic advancement of the state.
As the business develops, maintaining consumer safety and high-quality products will continue to be prioritised, which will help customers’ faith in direct selling grow. Gujarat’s direct selling sector is poised to soar to new heights with the correct infrastructure and regulations in place, bolstering the state’s economy and opening doors for a myriad of micro-entrepreneurs.
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