How direct selling contributes to gender balance in the workforce
This article is authored by Sanjeev Kumar, president, Association of Direct Selling Entities of India (ADSEI).
In an era where the lines between traditional work structures and entrepreneurial ventures are blurring, a particular industry stands out as a beacon of empowerment, especially for women. Direct selling, often perceived as a women-centric domain, has evolved into a platform that transcends gender biases, encouraging a spirit of inclusive entrepreneurship. As we observe Women’s Entrepreneurship Day this month, it’s timely to spotlight how India’s direct selling industry is shaping the future of gender equality in business.
Direct selling emerged in the United States (US) as an accessible path for women to gain financial independence at a time when the traditional workforce was largely inaccessible to them. Companies like Avon and Tupperware created opportunities that allowed women to work from home, fostering a culture of community-driven, flexible entrepreneurship. This model saw exponential growth, with women becoming the backbone of the industry. Even today, the global workforce in direct selling is composed of 70% women, accentuating the sector’s continued role as a pioneering space for gender equality.
In India, however, direct selling began evolving much later and followed a distinct trajectory. In the early 2000s, direct selling initially attracted men, driven by the appeal of entrepreneurship and low entry costs. Over time, the flexibility and low investment required made the sector appealing to women as well, leading to a rapid rise in female entrepreneurs. Till about half-a-decade back, India’s direct selling workforce consisted of approximately 60% female, and this trend was expected to continue. India, however, has a slightly different story compared to global stats, as in the last five-six years, the men participation in direct selling has increased significantly. Today, the Indian market is unique in its nearly equal male-female distribution—a testament to the sector’s inclusivity and adaptability.
Direct selling has witnessed a remarkable transformation. The sector's inherent flexibility, low barrier to entry, and potential for significant earnings have resonated strongly with women from diverse backgrounds.
The WFDSA’s 2024 report reveals that the global direct selling industry generated approximately $167.6 billion in retail sales in 2023, a slight decline due to global economic challenges.
In India, however, the industry has shown remarkable resilience. India has been one of the fastest-growing direct selling markets in the world, recording a double-digit growth at approximately 12% in 2023-24, with around $3,435 million market size. While this growth is driven by both men and women, it is pertinent to underline the increasing participation of men with every passing year.
Direct selling companies in India are also expanding their reach beyond metropolitan centres, tapping into Tier II and Tier III cities where employment opportunities are scarce. Over the years, rural regions’ participation in direct selling has increased significantly. This rural penetration is significant, as it demonstrates how direct selling is not only advancing women’s entrepreneurship but also addressing the urban-rural employment gap.
The industry's commitment to inclusivity has extended its reach beyond urban centres, penetrating into rural areas where opportunities are often scarce. This has empowered women in these regions, providing them with a platform to realise their entrepreneurial aspirations and contribute to their local economies.
The direct selling industry provides a distinct form of empowerment for Indian women, many of whom juggle household responsibilities with their professional aspirations. The flexibility it offers is essential: Women can work according to their schedules and invest minimal capital, which makes the business model accessible to a wide demographic. For a woman in a small town, to be able to start a business at a relatively lower cost is a boon, making it a low-risk, high-reward opportunity.
One of the vital elements in direct selling has been a notable impact on skill development. Direct sellers acquire essential skills in sales and marketing, communication, and business management. They also acquire in-depth knowledge about the products, which is essential for carrying out product explanation and demonstration. For many, it is more than a source of income—it’s a stepping stone to becoming skilled, independent entrepreneurs who contribute to their local communities.
Despite the industry’s many benefits, it faces some challenges in India. Though there is an increased awareness about it across the country, there is still some scepticism in some section of consumers. Another pain-point for the industry was the lack of regulatory clarity which adversely affected it over the years. However, several industry bodies, have worked extensively with government and policy making organisations to introduce regulatory framework, which has not only ensured recognition for the business model but also has fostered an increased consumer trust. After the notification of the Consumer Protection (Direct Selling) Rules 2021, the industry has become more accessible and trustworthy for all.
India’s direct selling industry has the highest gender parity globally, reflecting a new era where entrepreneurship is not gender-biased. According to WFDSA data, Asia-Pacific countries have some of the highest market penetration rates in direct selling, with India among the leaders.
This article is authored by Sanjeev Kumar, president, Association of Direct Selling Entities of India (ADSEI).