Network Marketing in the present Indian context

Talking of the present times, the Indian MLM industry is witnessing, especially for the past 4-7 years, a tide of MLM & direct selling firms operating in the market. A large portion of this tide is mainly characterized by mushroom growth of unorganized small players who are not serious with the MLM business, rather they are portraying it as a "get rich overnight" opportunity. With this, the image of the industry in India has been tarnished to much an extent. Many people now see MLM as a scheme run by fraudulent fly-by-night companies. This perception is also true keeping in note the fact that innumerable unorganized & small MLM companies have flown away and vanished from the market after collecting subscription/ joining fee from thousands of customers, the amounts being running in millions of rupees.

The other side of this story should also be given a proper reference. It is now a well understood and an appreciated fact that often quality has to be searched from within quantity. Referring to the above scenario of the MLM industry in India, it can well be said, from other side of the coin, that the industry is witnessing positive notes from business sector, as more and more companies are going the MLM way. Thus, involvement of hundreds of companies into MLM and the abovementioned MLM tide are then to be recognized as true representatives of the potential recognition of the direct selling & MLM industry. It is from these numerous companies & firms that the potentially good firms would carve a niche for them, thus resulting into reputed players in the industry. A good corresponding example of this perspective of MLM industry in India is the Indian Pharmaceutical industry. Alike the direct selling industry, the pharma industry is also characterized by mushroom growth of small companies. But today, the pharma sector in India is a high-booming sector and an important one when it comes to sectoral performance and growth. The entry of numerous firms in the pharma industry shows its potential recognition and it is from among these companies that many emerge out finally as good performing & profitable entities. Small cap firms in the pharma sector have already shown their importance both in terms of results and on the Indian stock exchanges. The same can hopefully be expected of the Indian direct selling industry.