Zwell Herbs

Understanding Direct Selling

Direct selling is a channel of distribution that connects sellers directly with consumers through personal interaction, product explanation and demonstration, away from a fixed retail location.

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Direct Selling

WHAT IS DIRECT SELLING?

Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location. Peddling is the oldest form of direct selling. Modern direct selling includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales.

A textbook definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs."

Direct selling refers to the selling of goods and services to consumers away from a fixed retail outlet, generally in their homes, workplace, etc., through explanation and demonstration of the product by direct sellers. It is one of the oldest modes of sales and is similar to the traditional consumer goods retail model.

The original Zwell Herbs page also refers to the direct selling market in Delhi, estimated in the range of INR 4.0–4.5 billion in 2014.

Distribution Channel

How Direct Selling Works

Direct selling is a dynamic channel for the marketing of products and services. There is no single universal definition; different countries, associations and individuals describe the sector in different ways.

It can broadly be understood as selling goods and services to consumers away from a fixed retail outlet, generally in their homes or workplace, through product explanation and demonstration by direct sellers.

Direct sales generally benefit from the explanation and demonstration of products made by an independent direct sales person to the consumer. As a specialised channel of distribution, it is neither wholesale nor conventional retail and can cover both business-to-business and business-to-consumer activities.

Despite its differences, direct selling is similar in many ways to traditional consumer goods retail.

01. Direct Product Sales

Distributors or direct sellers can earn a commission when a product sale takes place, according to the applicable business arrangement.

02. Sales Commission

The original page explains that sales commission may be based on a seller's own sales as well as the cumulative sales of the group built by that seller, similar to commission arrangements in traditional sales environments.

Industry Information

FICCI

The following information is reproduced in substance from the FICCI section presented on the original Zwell Herbs Direct Selling page.

FICCI INR 75 Billion

Indian Direct Selling Market

The original page reports the Indian direct selling market at INR 75 billion in 2013–14.

FICCI More Than 16%

Reported Growth

The source describes double-digit growth of more than 16 per cent over the preceding four years.

FICCI Retail Sector

Non-Store Retail Format

The source describes direct selling as one of India's fastest-growing non-store retail formats, attracting Indian and foreign companies.

Industry Report

KPMG IN INDIA

The original Zwell Herbs page includes the following historical industry information attributed to KPMG in India.

KPMG IN INDIA 100+ Countries

Global Industry

The original page describes direct selling in 2015 as an established industry operating in more than 100 countries worldwide.

KPMG IN INDIA USD 183 Billion

Global Market Size

The source states a global market size of USD 183 billion in its 2015-era discussion.

KPMG IN INDIA INR 645 Billion

Historical Projection

The original page cited INR 645 billion as the industry's potential size in India by 2025, subject to market growth and other conditions.

The original page also states that the Indian direct selling industry was estimated at INR 75 billion in 2013–14 and represented around 0.4 per cent of total retail sales. It compared India's market share with other economies, including China and Malaysia, and discussed the potential for future growth.

Historical data notice: The figures in the FICCI and KPMG sections above are historical figures and projections quoted on the original Zwell Herbs page. The INR 645 billion figure was a projection for 2025, not a verified current market value. These figures should not be interpreted as current 2026 statistics.

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