The Indian Direct Selling Association (IDSA), a self-regulatory and promoting body for the direct-selling industry in the country, has approached the directorate of industrial policy and promotion seeking legislation and code of ethics for the industry to follow so that the end consumer is protected.

“More and more players are keen to enter India. Since we are not guided by any legislation, there is not much clarity about how tooperate. We are advocating our position and interest with governments and key influencers,” said Fredrik Widell, chairman, IDSA.

As per IDSA, industry turnover last year was Rs 2,850 crore and this year it is expecting a growth of 15 per cent to reach a turnover of Rs 3,300 crore. By 2012, the Indian direct-selling industry is targeting a turnover of Rs 5,000 crore and by 2015 it aims to reach Rs 10,000 crore.

Direct-selling has been used as a medium by fast-moving consumer goods companies such as Hindustan Unilever for selling a special range of personal care products not available through regular retail channels. “There are several more established retailers who have shown interest in exploring this route,” said Widell. Widell, however, did not give details about the companies interested.

The largest and the oldest direct-selling market in the world is the US, with an industry size $31.0 billion. Closer home, countries such as Malaysia and Taiwan have an industry size of $2.0 billion, which is three times the size of the Indian direct-selling market at 2 per cent of population size.

“The direct-selling industry is a great opportunity and platform for anyone seeking a parallel source of income. In India, it provides self-employment opportunities to more than 16 lakh people, 68 per cent of whom are women,” said Chavi Hemanth, secretary general, IDSA. IDSA is affiliated to World Federation of Direct Selling Associations, established in 1978, and is a part of 59 direct-selling associations across the world. It has 15 members in India including Oriflame and Amway.