Gurgaon homemakers find fortune in direct selling
A number of homemakers in the Millennium City are earning smart commissions by marketing beauty products and fashion accessories directly.
IT requires negligible investment. And returns are directly proportional on one's sales pitch. Little wonder, then, that direct selling is finding favour with a growing number of 'representatives' and patrons in Gurgaon.
"Direct selling model is growing at a good pace here," said Chaitanya Agarwal, founder Juvalia and You, a brand involved in direct selling of fashion jewellery, accessories and bags. Agarwal added that Delhi-NCR contributes 20 percent of the total revenue of the company. Industry players peg the year-on-year growth of the direct selling market in the country at 15 percent.
According to a survey by India Direct Selling Association (IDSA), the market size is expected to reach above Rs 10,843 crore by 2014-15. "The market size of direct selling is expected to grow from Rs 6,385 crore in 2011-12 to over Rs 10,843 crore by 2014-15 and Rs 34,000 crore by 2019-20," the survey said.
Tony NCR townships has a robust contribution to this growth. Juvalia and You has around 35,000 stylists (a term for direct sales representatives) in the country. "Of this, around 1,500 are operational in Gurgaon, mostly falling in the age group 25 and 35 years," said Agarwal.
According to Ujjwal Mukhopadhyay, managing director, Avon India, another top brand that sells directly, an overwhelming chunk of this model comprises housewives, who with their unique networking skills contribute significantly to the success of this sale phenomenon.
The company offers products such as cosmetics, skincare, fragrance and personal care items. "In Gurgaon, the company has showed a compound annual growth rate ( CAGR) of around 30 percent between 2010-2012," said Mukhopadhyay
Mukhopadhyay reasoned that with no initial investments in terms of infrastructure or manpower, direct selling has made this model attractive for women who want to be part-time entrepreneurs. "Flexible work hours, no qualification bar, little seed capital and high income potential have also urged the involvement of women into it."
Understandably, the brands operating in the city largely deal with cosmetic products, jewellery and kitchen equipment. The industry players say that the city has a large female population who have high disposable income. So, while there is no dearth of the representatives, the patrons are manifold.
Most of the brands sell the products by a woman and to a woman. "Women's passion for beauty and cosmetic products are never ending; and the best representative to sell these products thus can be women," said Mukhopadhyay of Avon India. Anshu Bagai, chief marketing officer, Tupperware, adds another aspect. According ot Bagai, direct selling companies offer better quality and unique products that require personal pitch. "Our target is women who are looking for the convenience of someone coming to them to order and deliver their needed products. This allows us to understand the need of our consumers and meet their expectations."
He is quick to add that the two main hurdles for the companies are recruitment and training. "We have to work hard to find the right representative and train them. But it is important for the growth of the company as well as the representative," said Bagai.
"Direct selling model is growing at a good pace here," said Chaitanya Agarwal, founder Juvalia and You, a brand involved in direct selling of fashion jewellery, accessories and bags. Agarwal added that Delhi-NCR contributes 20 percent of the total revenue of the company. Industry players peg the year-on-year growth of the direct selling market in the country at 15 percent.
According to a survey by India Direct Selling Association (IDSA), the market size is expected to reach above Rs 10,843 crore by 2014-15. "The market size of direct selling is expected to grow from Rs 6,385 crore in 2011-12 to over Rs 10,843 crore by 2014-15 and Rs 34,000 crore by 2019-20," the survey said.
Tony NCR townships has a robust contribution to this growth. Juvalia and You has around 35,000 stylists (a term for direct sales representatives) in the country. "Of this, around 1,500 are operational in Gurgaon, mostly falling in the age group 25 and 35 years," said Agarwal.
According to Ujjwal Mukhopadhyay, managing director, Avon India, another top brand that sells directly, an overwhelming chunk of this model comprises housewives, who with their unique networking skills contribute significantly to the success of this sale phenomenon.
The company offers products such as cosmetics, skincare, fragrance and personal care items. "In Gurgaon, the company has showed a compound annual growth rate ( CAGR) of around 30 percent between 2010-2012," said Mukhopadhyay
Mukhopadhyay reasoned that with no initial investments in terms of infrastructure or manpower, direct selling has made this model attractive for women who want to be part-time entrepreneurs. "Flexible work hours, no qualification bar, little seed capital and high income potential have also urged the involvement of women into it."
Understandably, the brands operating in the city largely deal with cosmetic products, jewellery and kitchen equipment. The industry players say that the city has a large female population who have high disposable income. So, while there is no dearth of the representatives, the patrons are manifold.
Most of the brands sell the products by a woman and to a woman. "Women's passion for beauty and cosmetic products are never ending; and the best representative to sell these products thus can be women," said Mukhopadhyay of Avon India. Anshu Bagai, chief marketing officer, Tupperware, adds another aspect. According ot Bagai, direct selling companies offer better quality and unique products that require personal pitch. "Our target is women who are looking for the convenience of someone coming to them to order and deliver their needed products. This allows us to understand the need of our consumers and meet their expectations."
He is quick to add that the two main hurdles for the companies are recruitment and training. "We have to work hard to find the right representative and train them. But it is important for the growth of the company as well as the representative," said Bagai.
And the players are gung ho about the growth prospects in the Millennium City. "The business model is really growing here and we have little doubt over the expansion of the rise of this industry in near future," said Agarwal of Juvalia and You. He added that in the period of one year, their brand has achieved a good success rate and given the growth of Gurgaon they expect their sales to grow at a better pace in the coming years.
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