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Shri K.Desiraju, Secretary, Ministry of Consumer Affairs : Urges for framework and transparency from Direct Selling Industry

IDSA-PHDCCI Organizes Seminar on Direct Selling: An Emerging Non-Store Retail Format

New Delhi, 13 May 2014: With Direct Selling Industry emerging as a powerful Channel of distribution in Non-Store Retail Format and is becoming popular with the consumers with the policies of this Industry like buy-back, money-back and other guarantees. In order to safeguard the interests of Consumers in a more channelized manner, the Industry in India needs a safe and legally strong business environment. To stimulate the need for policy framework, PHD Chamber of Commerce & Industry and Indian Direct Selling Association (IDSA) came together and organized a Seminar on Direct Selling: An Emerging Non-Store Retail Format on Monday 12th May, 2014 at New Delhi.

Shri Keshav Desiraju, IAS, Secretary, Consumer Affairs, Govt. of India during his address as Chief Guest emphasized on Direct Selling Industry as an emerging format of Non-Store Retail. He appreciated the issues which are being faced by the industry. Stakeholders should act in transparent manner and work within the framework of the existing legislations. He also added that whenever Govt. of India is coming out with legislation, it should be framed out with a long term perspective and from the Industry perspective there should be a whole hearted commitment towards abiding and complying of such legislation to the eternity.

Ms Chavi Hemanth, Secretary General, IDSA, opened the seminar and said, “With the emerging growth of Direct Selling- a part of Non-Store Retail in India and all across globe, we are evaluating the significance of legal framework serving it. It has crossed a turnover of INR 7164 Crore in 2012-13 with a CAGR of 20% promoting self employment opportunities.”
“Owing to the lack of Policy Framework, Direct Selling Industry is facing huge challenges and there are operational hindrances limiting the growth of the Industry. Industry has been aiming high despite hurdles and thus is self regulating itself with their Code of Ethics to protect the interest of consumers, direct sellers and all other stakeholders. Hence, our industry requests government to take steps to ensure that the industry is protected with the very much needed statutory protective measures,” Ms. Hemanth further said.
Emphasizing on Indian consumers, Mr. Alok B Shriram, Senior Vice-President, PHD Chamber stated that “The Indian consumer is gradually moving from the local “kirana” shopping to large convenience stores/ online shopping/ network marketing, that is, direct selling / television based home shopping, etc. An increase in the number of young employed executives and the increasing population of working women is stimulating growth of modern retailing in urban areas. These innovative retail models such as direct selling have initiated a wave of entrepreneurship across the country, attracted heavy investments by individuals as well as private equity firms and are generating considerable employment opportunities.”

Shri Keshav Desiraju, IAS, Secretary, Consumer Affairs, Govt. of India along with Shri Amit Yadav, IAS, Secretary, Industries, Govt. of NCT of Delhi  and other panelists released a Book on “Direct Selling: Is it Ethical ?” written by Mr. Bejon Misra on the occasion of this seminar.

“The Industry has been emerging as an alternative sales distribution channel in Indian market over the years and the growth prospects of the industry are bright which is set to take off as driven by strong consumer base, rising urbanization, growing middle class population and expanding markets going forward,” Dr. S.P. Sharma, Chief Economist, PHD Chamber stated.

Direct Selling as boosted local economies and given empowerment and new direction to women and youth in the country. Mr. Bejon Misra, Renowned Consumer Policy Expert and author of ‘Jaago Graahak Jaago’ Campaign said, “It is an emerging non-store retail format which has initiated a wave of entrepreneurship across the country, not only generating considerable employment opportunities but has also provided choice to the consumer with added value. This has proved that industry grows only when it gives importance to the consumer”

For further information please contact:
Sujoy Chowdhury, Sujoy@impactpr.in, 9310333597
Neeraj Shorya, neeraj@impactpr.in, 9310333595
Parul Kohli, parul@impactpr.in, 8010133598
Impact Public Relations Pvt. Ltd.

Regards, 
Sujoy Kumar Chowdhury

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