Future of Network Marketing
Future of Network Marketing
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.
Network marketing is the future of business in the 21st century, The future with network marketing business is very bright, we are in a golden age of network marketing, one should be considered as serious career and earning opportunity.
Network Marketing is a business in which we don't invest money but we invest time. The industry that has created maximum millionaires in world.
History of Direct Selling
In the year 1886-MLM business was established in the USA with the establishment of Avon.
In the year 1925– During this year, the direct sales volume increased to around 300 to 500 million USD.
Between 1940 and 1960– Many companies emerged based on 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 attract potential customers.
Between 1990 and 1996-Many major MLM companies like Avon, Amway, Tupperware extended their service globally to build massive customers for their MLM business. They started their MLM business in India, Korea, China.
Direct Selling Market in India.
In India the industry came into existence in early 1980 However, it really took off in early 1990s soon after the country opened upto the global market.
In the year 1990s Direct selling market came into existence.
In the year 1995 Amway entered in India.
In the year 1996, Avaon, Oriflame and Tupperware entered India.
In the Year 1996 IDSA (Indian Direct Selling Association) was established.
Future of network marketing in India 2025
The direct selling industry in India is estimated to be Rs.74 billion (2014-15), With growth in consumer markets and increase in its penetration to globally comparable levels, the industry has the potential to reach a size of Rs.645 billion by 2025, according to a recent KPMG report.
Direct selling industry has created a positive impact on several social and economic parameters in India:
1. Additional Income Opportunities
2. Women Empowerment
3. Provides Employment for Many people.
4. Development of SME Sector (Small and Medium Enterprises)
5. Training on Positive Impact on Several Social and economic Parameters.
6. Contribution to the Government Sector.
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.
The direct selling industry’s potential to reach a size of Rs.645 billion by 2025 driven by growth in consumer markets and increase in the penetration of direct selling to globally comparable levels is contingent on creating an enabling environment for the industry.
Players in the industry believe that if the government sees the direct selling industry as its partner, the industry has massive potential to grow and benefit millions in the country.