Estimated turnover of major Multi Marketing Firms in Crore of Rs, for the Indian Market in 2003-2004.
Nutrition and wellness products contribute more than 35% of the total Multi Level Marketing (MLM) industry turnover. MLM is a 2,300 crore industry comprising of companies like Amway, Tupperware, Oriflame, HLL, Modicare, and Avon. Healthcare products chip in around 25%. Cosmetics make upto 15%, while personal care products account for another 15-20%.
- Analysts believe this is surprising phenomenon, since the products of direct sellers are, on an average, far more expensive than those from retail sellers.
A senior Amway official said that nutrition and wellness products contribute to about 40% of the industry turnover. "These products are very expensive. We have a large number of doctors who are our direct selling partners. One cannot rule out their role in explaining the benefits of the product to their patients."
- Senior officials from competing Fast Moving Consumer Goods (FMCG) frown on this practice. "How ethical is it for such professionals to sell a product to a person who trusts them, and is psychologically vulnerable to advice from them on a professional level?" asks the marketing head of a leading FMCG group.
