By Our Staff Reporter
Guwahati, June 10: The direct selling market in Assam was estimated in the range of INR 3.6-3.8 billion in 2014, a report by FICCI-KPMG India titled 'Direct Selling: Assam' launched today stated, estimating that the industry had the potential to employ 1 million people in the State by 2020.
The report says that the direct selling industry has the potential to create a significant social and economic impact in Assam, and driven by growth in consumer markets and increase in penetration of direct selling to globally comparable levels, the industry has the potential to reach a size of INR 6-8 billion by 2025.
"Assam has been one of the fastest growing direct selling states and has emerged as a key destition for intertiol direct selling companies. In the fincial year 2014, over 0.3 million direct sellers were estimated to be engaged with the industry and this number is projected to grow further with the growth of the industry," the report outlined, adding that 60 percent of the workforce were females.
The direct selling market in Assam is domited by beauty, cosmetics, health and other wellness products. Amway, Avon, Herbalife and Oriflame are the key players in the State.
However, the most daunting challenge for the direct selling industry is the lack of regulatory clarity. Due to this, often direct selling companies are mistaken for fraudulent pyramid/ ponzi schemes, the report said.
In order to clear the blurred lines between ethical industry players and impersotors, the Central government is coming up with a set of advisory guidelines soon.
Chandralekha Malviya, Principal Advisor, Department of Consumer Affairs, Ministry of Consumer Affairs, Food & Public Distribution said the advisory guidelines will eble the state governments to monitor the industry effectively.
Swapnil Barua, Commissioner, Industry & Commerce, said Assam government has taken the industry seriously as besides contributing to the revenue, it has generated employment opportunities.
"But we have come across reports of people being cheated which has been mainly due to lack of a control system," Barua said.