Case Study: Direct Selling in India

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Case Study: Direct Selling in India

Global Health & Wellness Company Enters a Highly Regulated Sector in India

 

India’s purchasing power is increasing rapidly, offering a growing number of people the opportunity to spend on products once considered luxury. This has led to wide-ranging opportunties for foreign investors, particularly in the Health & Wellness industry in India.

The case study below details one Heath & Wellness company’s entry into the Indian market. While their business model sets them apart somewhat, they still tackled challenges faced by many entering the market. 

Executive Summary

A health and wellness company with offices around the world sought entry into the rapidly growing Indian marketplace. However, since direct selling is a highly regulated sector in India, the company enlisted the help of professionals familiar with the regulatory framework to avoid pitfalls and roadblocks.

Download the full case study below. 

Challenges

Our client faced multiple challenges, including needing to:

  1. Understand the regulatory framework and ensure timely approvals of the products from government authorities.
  2. Set up operations in an unfamiliar market requiring incorporation, recruitment, office space rental and selection of a reliable online payment gateway.
  3. Ensure product compliancy, as well as intellectual property and brand protection in the Indian market.

Solutions

To overcome the challenges, we helped by:

  1. Conducting a feasibility study covering legislation and optimal entry structure among other business intelligence.
  2. Incorporating the client and providing other services to help the client become operational including: gateway & vendor payment, recruitment & office rental, etc.
  3. Handling product compliance research and registration along with trademark and tradename registration with government authorities.

Impact

As a result:

  1. Client had a clear strategy for market entry and was able to set up operations without the need of having their own team on the ground or dealing with multiple service providers.
  2. Client’s FDI incentive opportunities were maximized, including a reduction of their tax burden.
  3. Client’s product and IP is fully protected in the India marketplace.

Download the case study for more information.


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