A New Dawn For Direct Selling in India

The year 2021 is special for Direct Selling industry in India. The year marks completion of 25 years of the industry in India and what a journey it has been – full of curves, twists and turns. The challenges faced by the industry here are largely the same around the world, from misapplication of laws meant for banning Pyramid Schemes to accusations of being a Money Circulation business. As a matter of fact, one entire generation of Direct Sellers has grown up clarifying these issues and explaining to their prospects, why the business they are inviting them to be a part of, is a legitimate income opportunity.

For a long time, a need was felt that Direct Selling needs to be introduced as a field of study so that the industry gets access to the next generation of Direct Sellers who not only know about the integrities of the business in advance but are deemed trade-ready by the companies.

Industry oriented education is not a new concept in India or for that matter, in other parts of the world. In simple terms, industry-oriented education is a form of education which prepares a person to follow more successfully a trade or an industrial pursuit. In India, the insurance sector is a live example of how industry-oriented education can provide impetus to the growth of it. The introduction of insurance specific educational courses had led to the rising awareness among the youth about financial protection and insurance products. Needless to mention, this culminated in the phenomenal growth that the sector has witnessed in last decade.

So, the big question was – if industry-oriented education can play a significant role in growth of an industry, why Direct Selling industry should be any different?

The Indian Direct Selling industry is amongst the fastest growing in the world. As per the results published by World Federation of Direct Selling Associations (WFDSA) for the year 2019, amongst top 20 Direct Selling nations around the world, India registered the highest year-on-year growth rate and the highest CAGR over a period of three years. The big population of India with a significant share of youth, serves as the catalyst which has provided pace to the growth of the industry.

With this thought in mind, several preliminary steps were taken with the objective of formalizing a system of imparting training to Direct Sellers. While several training institutions were already existing that claimed to be providing some sort of formal training to Direct Sellers however, there was no approved curriculum or course structure, in the absence of which, the very objective of starting such a program gets defeated.

Recognizing the need for a formal education program specific to Direct Selling, IDSA started discussing this idea with various universities and regulatory bodies. After months of hard work and several rounds of discussions, the dream got fulfilled in the form of Centre of Excellence for Direct Selling in Academics (CEDSA) which is a joint initiative between Indian Direct Selling Association and Shoolini University, an Indian university in the state of Himachal Pradesh, India.

CEDSA shall primarily serve two purposes – first, to impart Direct Selling industry-oriented education to interested students and second, to serve as the preferred destination for all research works to be undertaken in the field of Direct Selling.

For fulfillment of the first objective, CEDSA has been granted the necessary regulatory approvals for running a 1 year Post Graduate Diploma in Direct Selling (PGDDS). Every year 30 students shall be selected based on the notified admission criteria followed by an interview to judge their capability. Students thus admitted shall undergo an 8 month class room study program followed by a 4 months on the job training, in order to successfully qualify for the award of the diploma. In addition to the regular faculty of the university, industry stalwarts, representatives from the top management of leading direct selling entities shall also take sessions to provide insights to the students.

With respect to the second objective, CEDSA shall undertake research assignments on behalf of public and private sector, on issues concerning Direct Selling and related matters. CEDSA shall have full time research scholars who will design custom solutions based on the needs of the assignment.

CEDSA has already generated massive interest and curiosity amongst the members of the Direct Selling fraternity. While only time will tell whether the intention behind setting up CEDSA gets fulfilled or not however, this is definitely a step in the right direction.

Theodore Roosevelt, the 26^th president of the United States once said, “believe you can and you’re halfway there”. CEDSA has been incorporated with a belief that it will bring a positive change in the manner in which Direct Selling industry is perceived in India. In the words of Theodore Roosevelt, we are already halfway there and it’s going to take a lot of hard work and dedication to cover the remaining half.

— Chetan Bhardwaj, General Manager – Indian DSA