Tag Archive for Amway Korea

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Amway Korea: Sales Grow 261 Times Over 25 Years

by Nicole Dunkley • May 19, 2016 • 0 Comments

Amway Korea has achieved a remarkable growth over the past 25 years, offering consumers a wide range of high-quality, reliable consumer products.
The Korean unit of U.S. multi-level marketing company has been growing together with Asia’s fourth-largest economy, to become one of the most trusted corporate citizens in the country.
Amway Korea, which has become an industry leader since its foundation in 1991, is widely known for its unique distribution system in which Amway business members sell directly to consumers.
Amway distributes more than 500 kinds of nutrition, beauty and home care products, such as cosmetics, toothpaste, dietary supplements, detergents and soaps. Its top-selling brands include Nutrilite, Artistry, and eSpring.
It earned 1.07 trillion won in sales last year, up 261-fold from 4.1 billion won in 1991.
In 2010, the company launched a distribution center in

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Amway Sees Aging Society As Biz Opportunity

by Tina Williams • May 20, 2015 • 0 Comments

U.S. direct-selling company Amway has found further room for growth in Korea as per-head sales of its health supplement products topped other countries last year, the company founder’s son said Sunday.
In an interview with Korean journalists in Beijing, Sam Rehnborg, president of Nutrilite Health Institute, wholly owned by Amway, said as Korea was one of the world’s fastest-aging societies, the demand for health supplements was set to rise in coming decades.

“China is a huge market compared to Korea,” he told The Korea Times after the group interview. “In terms of sales per capita, however, Korea is already a benchmark for our less-developed markets due to Amway Korea’s powerful method of marketing, referred to in some U.S. universities as social marketing. It helped the market in Korea to another level.”

To explain what social

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Amway Korea Flaunts Regulations, Receives Slap On The Wrist

by Tina Williams • August 5, 2014 • 0 Comments

Ammway Korea (CEO Park Sae-joon), the largest multi-level marketing company, received correctional orders from the Fair Trade Commission (FTC) for flaunting the regulations set for multi-level marketing companies. However, the FTC has also been criticized for handing out a too-light punishment.
Unilateral Arrogance
According to the FTC on July 29, Amway forced its salespersons who resell Amway products to not sell products cheaper than a stated purchase price. If any salesperson violated this order, they were temporarily disqualified from conducting any sales activities. Disqualified salespersons are not eligible for support allowances, usually paid depending on each person’s sales performance and that of their subordinate salespersons. Disqualified salespersons can no longer recruit subordinates, either.
This is a clear violation of the Monopoly Regulation and Fair Trade Act (Section 21). Amway salespersons are not employees of the multi-level marketing company, but are considered to be independent retail distributors. Accordingly, salespersons can legally dispose of products they buy from the company via any method, including price discounts. This possibly helps consumers buy daily necessities at lower prices.

The FTC gave Amway corrective orders to stop the price fixing activities and delete the relevant clause from their sales guidelines. The FTC said, “Amway deprived consumers of the opportunity