Amway India’s business volume has been flat over the last two years owing to a dearth of regulations for the direct selling business industry in India. The company is trying to dispel the government’s misconception that its sales are based on a ‘pyramid’ model, reports the Times of India.
Samir Behl, regional president (Europe, Africa and India), said, “This business does not have a pyramid structure. Had it been a pyramid, direct-selling businesses across the country would have collapsed by now. Dearth of legislation and fundamental structure is creating a confusion. We are confident that we could make things clear to the inter-ministerial group on direct-selling industry.
We are bullish on India which has been proved by our continuous investment and physical presence. There is a huge potential waiting to be tapped as India is a highly networked society in which recommendations play a significant role in making a buying decision. With the surge in entrepreneurship and social media presence, it should work.”
According to KPMG, the direct-selling industry in India will be worth $10 billion (64,500 crore) by 2025 from the current figure of $1.3 billion. (8,000 crore.)
Amway India CEO Anshu Budhraja said, “We hold one-fourth of India’s direct-selling business at $320 million (2000 crore) which we are targeting to grow three times in 10 years.”
India is one of the top 10 markets for the $9.5billion U.S.-based Amway Corporation.