Direct selling, ecommerce competition intensifies: Report

The competition between the direct selling industry and the new age channels, such as e-commerce, direct-to-consumer (D2C) brands and quick-commerce platforms, is further intensifying , according to the latest annual report of industry body IDSA.

IDSA is an autonomous, self-regulatory body for the direct selling industry in India, representing leading members as Amway, Avon, Atomy, Blulife, Herbalife, Modicare, Oriflame, Tupperware, etc.

The direct selling sector is no longer operating within a closed competitive landscape and is increasingly being evaluated against digital-first platforms such as Amazon and Flipkart, which have reshaped consumer expectations around shopping experiences, it said.

Consumers are now assessing direct selling companies not only on product quality and personal relationships but also on price competitiveness, faster delivery, seamless digital interfaces and overall convenience, standards largely set by online retail platforms.

Now “58% of direct sellers identify competition from e-commerce and quick-commerce platforms as a key challenge, highlighting growing pressure on both customer acquisition and retention,” said India Direct Selling Association (IDSA) in a statement.

In parallel, these platforms are also competing for the same pool of flexible, income-seeking individuals, further intensifying competition, it said.

A clear shift in consumer expectations has emerged, largely shaped by the rise of ecommerce and quick-commerce platforms.

“As consumers become accustomed to instant delivery, seamless payments, realtime tracking, and hassle-free returns, they increasingly expect similar standards from direct selling companies,” it said.

India’s direct selling industry reported a year-on-year growth of 4% in FY25 to Rs 23,021 crore over Rs 22,142 crore in the previous fiscal year, according to the Direct Selling Industry Outlook released by IDSA.

The Indian direct selling industry has demonstrated resilience even as global direct selling markets contracted (1.2% worldwide) and Asia remained nearly flat (0.05% ), the report said.

India was ranked 11th globally in terms of country-wise retail sales by the World Federation of Direct Selling Associations, a US-based international non-governmental organisation representing the direct selling industry worldwide.

Moreover, the number of women direct sellers has increased in India from 44% to 48% of the total direct selling workforce of over 93 lakh.

According to the report, the northern region emerged as the largest contributor to India’s direct selling industry with a 27.58% share in gross sales, followed by the western region at 25.47% and the eastern region at 22.47%.

The southern region accounted for 17.81% of gross sales, while the northeastern region contributed 6.67%.

Among states, Maharashtra retained the top position with a 15.31% contribution to gross sales, followed by West Bengal at 10.88%, Uttar Pradesh at 8.82%, Karnataka at 6.37% and Bihar at 5.61%, the survey said.

The findings also showed that wellness and nutraceutical products continued to dominate the direct selling sector, accounting for nearly 60% of total sales.

Cosmetics and personal care products contributed 26%, while household goods accounted for 5 per cent. Collectively, these three categories represented over 91% of the industry’s total sales, underscoring strong consumer demand for health, beauty and daily-use products, it added.