In 1998, QNET launched an international direct sales company with an emphasis on e-commerce, becoming one of the first companies to integrate traditional face-to-face direct selling with online buying. Customers around the world were offered products and services seamlessly as the company expanded across borders.
The Hong Kong head office of QNET is the company’s global headquarters. QNET has offices in Asia, the Middle East, Europe, Sub-Saharan Africa, Russia, and the CIS region. The Indian subsidiary of QNET operates through Vihaan Direct Selling (India) Pvt Ltd, registered in Bengaluru. Since it was founded, QNET has touched thousands of lives across the country.
The purpose of QNET is to help people improve the quality of life for themselves and their families by living healthier, focusing on personal development, improving the quality of their relationships with both friends and family, and planning a better future.
The products and services of QNET have been used by millions of customers across the globe for the last two decades. Many of these customers became distributors of QNET’s products and earned commissions for their sales. QNET has around 600,000 distributors registered in India. Thousands of customers and distributors have bought QNET products and earned commissions by selling them to others.
Vihaan Direct Selling (India) Pvt. Ltd. was appointed by QNET as its sub-franchise in India in November 2011. Vihaan possesses all necessary licenses to operate its business in India, being chartered under the Companies Act, 1956. We comply with all statutory mandates and the direct selling guidelines released by the Ministry of Consumer Affairs in 2016.
The year-over-year (YOY) growth of 12.1% in India’s direct sales industry in 2019 led to $2.47 billion in annual sales. India moved up to 15th place from 19th position in 2018, with 60% of independent representatives being women in the industry.
Through Vihaan, QNET markets home care and personal care products, nutritional supplements, luxury watches, and holiday packages. The government’s ‘Make in India’ initiative has led to more than 80% of the products available to Indian consumers being sourced locally. Each product is backed by a manufacturer’s warranty and meets rigid quality standards. In addition to visual inspections, QNET also conducts rigorous testing on all partners who supply QNET products. For consumable products, FSSAI and Ayush certifications are sought, along with third-party tests.
Kent and Sharp are two popular household consumer durable brands that have chosen QNET to market and distribute specific models in India. As part of its market strategy for India, QNET is partnering with leading brands to develop products that address the need for clean water and air.
Challenges faced by QNET in India
The Maharashtra Protection of Interest of Depositors Act (MPID Act) and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (PCMC Act) do not apply to the QNET system in India.
As per PCMC Act, it is prohibited to use prize cheques or circulate money for the purpose of making money. The Act also prohibits usury and schemes involving a contingent event. As a variant of colonial laws, the PCMC Act was upgraded in 1978 to combat small-time lotteries and Ponzi schemes. This took place years before direct marketing companies began operating in India in the 1990s.
It is not a prize chit business nor a money circulation business because QNET’s India business includes specific products and services that must be purchased in order for payment to be accepted. In other words, the customer is always getting something in return. Additionally, the Act does not require subscriptions to periodicals or an entry fee.
Direct selling companies have been accused by state regulators of conducting ‘money laundering activities by advertising or promoting schemes to make quick money. When misconceptions of the industry are combined with a lack of clear guidelines, the regulators are left at a loss for what to do. Direct selling may be the only industry pushing for greater government intervention.
As QNET in India also does not fall under the Maharashtra Protection of Depositors (in Financial Establishments) Act, 1999 (MPID), as no deposits are involved in the company’s business., It is not a monetary establishment since Vihaan and QNET do not accept money or valuable commodities for monetary benefits. Thus, no offence under the MPID Act can be attributed. Purchasers do not have a right to their money outside of refunds. Therefore, such payments are not deposits under the MPID Act, as the orders for goods and services fall under the exception of section 2(c)(v)(d) of the MPID Act. The entire process is governed by the Sale of Goods Act and the Consumer Affairs Ministry’s Model Direct Selling Guidelines.
Projects in partnership with Lions Clubs
- During the 2015 Chennai floods, employees and distributors collaborated with the Lions Dist. 317 F Service Foundation, Bangalore Chapter, to provide relief kits for 200 families.
- BBMP Corporator provided support for the Nutriplus Health Camp on behalf of QNET in 2016 at Government primary school Sahakarnagar in Bangalore in association with the Lion Clubs of Kodigehalli. After eight weeks of continuous monitoring, significant health changes were noted for 180 students who received Nutriplus protein shakes every day during the project.
- To create awareness of the blood shortage and educate people about the benefit of blood donation, the Lions Clubs in Kodigehalli, Bangalore, organized a blood donation camp, in partnership with QNET, in 2018.
- The Shirdi Sai Hospital, located in Devasandra, Bengaluru, received a Kidney Dialysis Unit, donated by QNET India in association with Lions Clubs International, a Bengaluru-based chapter.
- In conjunction with the Lions Clubs of India, QNET’s India business organized the Walk of Life to bring more awareness to childhood cancer on 24 November.
- Through an event organized by QNET in association with Lions Clubs in Hassan, Karnataka, in May 2018, 50 people who had lost limbs in tragic accidents received prosthetic limbs.
- As part of the partnership, QNET identified 1200 children from Grade 6 and above who couldn’t afford basic school supplies and gave them free supplies from the Lions Clubs of Hyderabad, Swarnapuri. Through the company’s We Care initiative, QNET India provided uniforms and eco-friendly school bags to those children so they could start school in a positive way.
- A water storage facility was built in Sriram Nagar in Hyderabad in collaboration with QNET and the Lions Clubs of Hyderabad, Swarnapuri, Dist. 316 F. Each day, more than 800 students receive safe drinking water from this storage facility.
The future of this industry in India is bright, thanks to a growing consumer base and direct selling guidelines. The emphasis should be on ensuring that all states implement the guidelines properly. The focus of QNET in India in the coming years will be to develop and expand offerings in the health and wellness category, to expand partnerships with Indian SMEs to bring their products to a global audience and to support disadvantaged communities through our CSR activities.
