Growth of network marketing by 2021
Growth of network marketing -The economic slowdown of India plays an important role that more and more entrepreneurs are thinking out of the box to choose a wide-spaced and profitable business platform-“Network Marketing or MLM” business.
People in India are concerned about making money conveniently and easily , and therefore the same is that 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 2021 to understand the past and way forward for the network marketing business.
The present condition of MLM or network marketing in India looks to be cheering and assures future success within the industry.
By comparing with the opposite developing countries, India remains standing behind to simply accept the MLM business completely. the sole reason for this is often the MLM scam running behind the network marketing business. The scams decline the Indian economy, but nowadays, the precautions are taken care of to urge obviate MLM scams.
In this article, we’ll check out the expansion of the network marketing business in 2020 in India.
Before looking into the Network Marketing future in India, we’ll briefly check out the history or evolution of the MLM business in order that it gives a transparent picture of the longer term or growth of the network marketing business.
History of Direct Selling
- In 1886-MLM business has evolved within the USA during the year 1886 with the establishment of Avon.
- In 1925– During this year, the direct sales volume increased to around 300 to 500 million USD.
- Between 1940 and 1960– Many companies emerged supported the concept of multi-level marketing or network marketing.
- In 1970-New products are being focussed on widening the MLM business. Product categories like wellness products, household products, food items started evolving to draw in potential customers.
- Between 1990 and 1996-Many major MLM companies like Avon, Amway, Tupperware extended their service globally to create massive customers for his or her MLM business. They started their MLM business in India, Korea, China.
- This is how MLM business enters India. Now we’ll check out the expansion of network marketing in 2020 in India by analyzing the up and down of the previous years.
Growth of Network Marketing In India – MLM Business Ideas in 2021
The direct selling industry in India seems to be promising within the yielded benefits. Yes, that’s almost doubled within the year 2016 in comparison with the year 2011. From the report of Assocham, it’s evident that it’ll touch the record of around 159.3 billion in 2021. the typical sale is increasing for every individual, and it’s almost $300 annually.
The study also depicts that the network marketing business has ample space for the marketers and may build the contributory platform to reinforce 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 highest 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. an enormous number of individuals started joining the MLM business. Almost around 80 percent of the countries round the world started joining within the MLM business.
Though there was continuous growth over the years and therefore the benefits contributed has enhanced the worth of the Indian economy, this MLM business is a smaller amount accepted in India thanks to the varied schemes adopted in India. Sometimes these network marketing schemes involve an outsized expense to face up to this network marketing business. People in India faced unscrupulous network marketing schemes where they need 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 expansion of network marketing companies, the varied guidelines are often 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’s estimated that the Network Marketing turnover in India will reach a pinnacle of INR 645 billion by 2025. it’s also impacted various social and economic factors.
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1. Passive Income Opportunities:
Network marketing business will offer opportunities for its massive customer base to earn passive income and micro-entrepreneurship is promoted. it’s estimated that around 5 million distributors are engaged within the MLM business to earn passive income.
2. Established Women Empowerment:
During the year 2013, it’s estimated that it’s employed around 3.4 million females as distributors of MLM business. Network Marketing business exposes the space for the ladies empowerment and established a robust future for the ladies to balance their time and work more effectively.
3. Opportunities for SME’s:
Direct selling companies come up with the launch of latest products and depend upon the SME’s to reinforce the features of their products. This provides opportunities for SMEs. the businesses invest within the right SMEs to market their MLM business with the new products.
4. Enhanced Employment Generation:
As we’ve already seen that it provides passive income for the marketers, it also provides employment opportunities for an outsized number of individuals . Most of the time MLM companies interact with various vendors to accomplish operations like packaging and distribution.
5. Initiated Social Responsibilities:
Network marketing companies are outstanding in supporting social responsibilities. The projects administered by some significant MLM companies play an important role in resolving the social impacts.
For example, Amway’s Sunrise project and Avon’s carcinoma crusade.
6. Contribution to the govt Sector
Since the MLM companies generate an enormous tax to the govt . 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 tax .