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The economic slowdown of India plays a crucial role that more and more entrepreneurs are thinking out of the box to opt for a wide-spaced and profitable business platform-“Network Marketing or MLM” business.
People in India are concerned about making money conveniently and simply, and the same is the major highlight of the network marketing business. People are too smart that they analyze the history, statistics report, or growth of network marketing business 2020 to know the past and future of the network marketing business.
The present condition of MLM or network marketing business in India looks to be cheering and assures future success in the industry.
By comparing with the other developing countries, India is still standing behind to accept the MLM business completely. The only reason for this is the MLM scam running behind the network marketing business. The scams decline the Indian economy, but nowadays, the precautions are taken care of to get rid of MLM scams.
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In this article, we will look into the growth of the network marketing business in 2020 in India.
Before looking into the future of the network marketing business, we will briefly look into the history or evolution of the MLM business so that it gives a clear picture of the future or growth of the network marketing business.
Network marketing is one of the oldest and traditional businesses of selling products at multi-levels and forming an extensive network of people to promote the business. Nowadays, it is the best industry to stay profitable and started operating in more than 100+ countries with the massive size of the market. i.e. around 167 billion USD.
The direct selling industry in India seems to be promising in the yielded benefits. Yes, that is almost doubled in the year 2016 when compared with the year 2011. From the report of Assocham, it is evident that it will touch the record of around 159.3 billion in 2021. The average sale is increasing for each individual, and it is almost about $300 annually.
The study also depicts that the network marketing business has ample space for the marketers and can build the contributory platform to enhance the MLM business in India.
The study showed that the ranking of MLM business was increased from 22nd position to 20th position during the year 2015 to 2016. The top three markets during those years were the US, Korea, and China.
During the year 2015 to 2016, the sales volume attained a record of $183 billion globally. A huge number of people started joining the MLM business. Almost around 80 percent of the countries around the world started joining in the MLM business.
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Though there was continuous growth over the years and the benefits contributed has enhanced the value of the Indian economy, this MLM business is less accepted in India due to the various schemes adopted in India. Sometimes these network marketing schemes involve a large expense to withstand this network marketing business. People in India faced unscrupulous network marketing schemes where they have not gained any profit with the MLM business.
As per the survey conducted during the year 2015 to 2016, almost around 50,000 people were benefited from the MLM opportunities offered by the direct selling companies. Various government schemes like Digital India, Make in India, Skill India supported the attributes and growth of network marketing business in India.
To enhance the growth of network marketing companies, the various guidelines can be implemented at different levels and policies. Policies like FDI ( Foreign Direct Investment )policy and consumer protection bill will offer a retaining environment for the MLM business.
With the above records, it is estimated that the MLM industry will reach a pinnacle of INR 645 billion by 2025. It has also impacted various social and economic factors.
Network marketing business will offer opportunities for its massive customer base to earn passive income and micro-entrepreneurship is promoted. It is estimated that around 5 million distributors are engaged in the MLM business to earn passive income.
During the year 2013, it is estimated that it has employed around 3.4 million females as distributors of MLM business. Network Marketing business opens up the space for the women empowerment and established a strong future for the women to balance their time and work more effectively.
Direct selling companies come up with the launch of new products and depend on the SME’s to enhance the features of their products. This provides opportunities for SMEs. the companies invest in the right SMEs to promote their MLM business with the new products.
As we have already seen that it provides passive income for the marketers, it also provides employment opportunities for a large number of people. Most of the time MLM companies interact with various vendors to accomplish operations like packaging and distribution.
Network marketing companies are outstanding in supporting social responsibilities. The projects carried out by some significant MLM companies play a crucial role in resolving the social impacts.
For example, Amway’s Sunrise project and Avon’s Breast Cancer crusade.
Since the MLM companies generate a huge tax to the government. It helps in improving the Indian economy with its huge revenue. During the year 2013, the tax generated was around INR10 billion. It also contributes to direct and indirect tax.
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From the above statistics, details, it is evident that the MLM industry has excellent potential to develop more success in the future of India. It has impacted the social as well as economic parameters in India. It is estimated that it will reach around 159.3 billion in 2021 and INR645 billion by 2025. Easily we can conclude that growth of network marketing in india is very promising.
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