Amway Corp. announced sales of $10.8 billion for 2014, a 10 percent decline that company officials blamed on lower revenues in China and fluctuation in foreign currency exchange rates.
“While 2014 revenues are lower than 2013, the company continues to exhibit strong long-term growth,” the company said in an announcement released Wednesday, Feb. 4.
“Amway has grown by 68 percent in the last decade and achieved sales growth in 13 of the last 15 years,” the company said. “In China, results have been strong as well – with growth rates over the past five and 10 years of 27 percent and 45 percent, respectively.”
Privately held Amway does not release its sales figures by country, but China is generally regarded as its largest market.
Considered the world’s largest direct sales company, Amway sells nutrition, cosmetics, home care, and durable products through a global multi-level marketing system that includes more than 3 million independent distributors.
Amway employs more than 20,000 worldwide and 4,000 near its Ada headquarters and at its hotel properties in downtown Grand Rapids.
“Sales in 2014 reflect the significant efforts of Amway business owners and employees who continue to do well around the world, despite challenging operating environments found in several nations that are major markets
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Amway Appoints New CMO – Su Jung Bae
by Ted Nuyten • • 0 Comments
Amway’s Chief Marketing Officer (CMO) Su Jung Bae leads global strategy and execution of category marketing for nutrition, beauty and home brands. She is also responsible globally for the Amway brand, corporate social responsibility and public relations/reputation.
Born and raised in South Korea, Bae joined Amway Korea in 1995 as a Nutrilite supplement marketer and was promoted to director. Then, until 2014, she served as Asia Pacific CMO, partnering with managing directors and functional leaders throughout the Asia Pacific region and China.
Bae contributed to Amway Korea’s significant and consistent growth over the last decade. Under Bae’s leadership, Amway Korea introduced integrated solutions for Amway Business Owners while leveraging various types of communication platforms, such as conventional media, new media and experience programs. She also led the Artistry brand sponsorship for the Busan International Film Festival, and participated in the establishment of the Asia Beauty Innovation Center.
“AMWAY IS RAPIDLY REINVENTING ITSELF. WE BELIEVE THE NEXT GENERATION OF DIRECT SELLING BUSINESSES WILL PROVIDE TOTAL LIFESTYLE SOLUTIONS TO THEIR SALES FORCE AND CONSUMERS.
THE INTEGRATED SOLUTIONS AMWAY IS DEVELOPING WILL HELP PEOPLE LIVE LIFE TO THE FULLEST, REACHING THEIR HEALTH, BEAUTY AND SUCCESS POTENTIAL.”
Bae is a strong advocate for creating shared value (CSV), supporting
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Organic Personal Care Products Market to Reach $13.2 Billion By 2018 – Amway And Arbonne Among Major Players
by Tina Williams • • 0 Comments
According to recent report by Transparency Market Research, in 2012, the global organic personal care products market was worth an estimated US$7.6 billion and is anticipated to grow to reach a value of US$13.2 billion by 2018.
The report, titled ‘Organic Personal Care Products Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012 – 2018′, also indicates that the market for organic personal care products will expand at a compound annual growth rate of 9.6% over the forecast period of 2012 to 2018.
The research report segments the Organic Personal Care Products Marketon the basis of product and region. Compared to the product-wise segmentation, the organic personal care products market is rather fragmented when it comes to geography.
The main product segments that comprise organic personal care products are cosmetics, oral care, hair care, skincare, and others. Accounting for 32.1% share of the total demand, skincare products segment led the organic personal care products market in 2011, with hair care and cosmetics segments following suit. Revenue-wise, the organic skincare products segment is anticipated to register a CAGR of 9.9% over the course of the forecast period.
Regionally, the global market for organic personal care products is segmented into North America
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Amway Buys California Energy Drink Company
by Tina Williams • • 0 Comments
Amway has acquired XS Energy, a California-based brand of energy drinks and snacks that has been successfully marketed through parties around the U.S. and Asia.
Neither the price or terms of the agreement were disclosed by the Ada-based direct-selling giant in announcing the deal on Wednesday, Jan. 14.
The acquisition of the brand is being described as a strategic move for Amway to leverage XS’ approach of connecting with young entrepreneurs.
Amway, which reported sales of $11.8 billion in 2013, makes Nutrilite vitamin supplements, Artistry cosmetics and eSpring water treatment systems that are sold through 3 million distributors around the world.
The XS Energy brand has been sold as an Amway product since 2003. It’s now distributed in 38 countries, generating annual sales of $150 million. Available in a range of flavors, XS Energy is described by its makers as a sugar-free energy drink loaded with B-vitamins.
The brand’s YouTube videos shows co-founder David Vanderveen and others on stages at rave-inspired gatherings smirking for a camera and crowdsurfing like rock stars.
The parties are “lifestyle branding” which show that work and play can blend together.
Vanderveen will join Amway as vice president and general manager for the XS brand to provide his expertise about connecting with the under-35 crowd.
Before
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Singapore Launches An Accreditation Organization For Direct-Selling Companies
by Tina Williams • • 0 Comments
The Consumers Association of Singapore (CASE) and the Direct Selling Association of Singapore (DSAS) on Thursday (Jan 8) announced the launch of their joint accreditation scheme, and more than 10 direct selling businesses have already been accredited.
Direct selling is a practice in which products are sold from no fixed location.
With the launch of the CaseTrust-DSAS Joint Accreditation Scheme, consumers can expect the following:
A cooling off period of seven working days (excluding Saturdays, Sundays and Public Holidays), during which consumers may seek full refund of payment made
An order form at the time of sale, with clear and accurate contact details of the direct seller
A well-defined complaint mechanism put in place by the business to address disputes
Besides these, accredited businesses are governed by DSAS’ Code of Ethics, which ensures all direct sellers within their distribution system practice responsible and ethical selling, the press release stated.
Companies must also comply with regulations that regular businesses are bound by, such as the Lemon Law, and detail the terms and conditions of any warranties and/or guarantees clearly.
These terms are on top of DSAS membership criteria, which require companies to at least be registered for a year with the Accounting and Corporate Regulatory Authority, undergo a six-month
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Amway’s Artistry Brand Leverages Digital Cosmetics
by Tina Williams • • 0 Comments
In a rapidly-changing world where new information and scientific data come to light faster than ever, beauty and skincare products continue to evolve.
Artistry™, one of the world’s top-five largest selling premium skin care brands*, continues to leverage these changes to imagine new technologies and discover new breakthroughs. Through active collaboration and partnerships with universities, scientists and industry leaders, Amway and the Artistry™ brand remain on the forefront of global trends and are achieving transformational advancements in beauty and skincare.
The future of forward beauty
“Research and advancements in dermatological treatment devices, DNA repair and stem cells are on the cusp of delivering breakthrough benefits to Artistry™ products,” said Dr. Paul Seehra, director of the Amway Asia Beauty Innovation Center. “And we continue to investigate emerging areas of new science, including studying and monitoring the benefits that microorganisms have on an individual’s skin and overall health.”
Located in Seoul, South Korea, the Asia Beauty Innovation Center (ABIC) supports collaboration with the pharmaceutical and healthcare industries. The ABIC’s presence in Asia is significant because the market accounts for a significant percentage of Artistry™ sales and Seoul is currently the center of pop culture for the region. In addition to advancing partnerships and research agreements,
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4 Things Amway Learned On Survey Of Over 40,000 On Entrepreneurship
by Tina Williams • • 0 Comments
For the past five years, Amway has been gathering data on entrepreneurs and what makes them different from other worker bees.
In the recently released 2014 Amway Global Entrepreneurship Report, the Michigan company surveyed more than 40,000 people to gain insight about the state of self-employment around the world. This year’s survey questions explored the connection between education and entrepreneurship.
The report is intended to advance the discussion on entrepreneurship and lead to a deeper understanding of what can be done to encourage and better prepare more people around the world to start businesses of their own, said Amway Chairman Steve Van Andel.
“Entrepreneurs play an important role in growing economies,” said Van Andel in a statement. “They create jobs, encourage competition and help communities grow and flourish. As the business environment has changed through the years, so have the reasons people decide to venture out on their own.”
Steve Van Andel and Doug DeVos on Amway’s entrepreneurial reportAmway co-CEOs Steve Van Andel and Doug DeVos discuss the company’s entrepreneurial report.
The world’s biggest direct sales company credits its success to the entrepreneurial spirit of its more than 3 million “Amway business owners” who sell the company’s vitamin supplements, cosmetics and household products. The privately owned
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Amway Defends Direct Selling, Touts ‘Made In The USA’
by Tina Williams • • 0 Comments
Amway surpassed Avon Products in 2012 to become the world’s largest direct-selling company, thanks to a steady, drama-free international expansion over the years into key markets like China, a bigger focus on nutrition products, which are less prone to sales fluctuations than beauty products, and the ability to attract and keep sales representatives (whom Amway calls ABOs, for ‘Amway Business Owners,’ and who now number 3 million.)
In 2013, its sales rose 4.4% to $11.8 billion, helped by growth in China, its biggest market, and one where Avon’s business has collapsed since a big bribery scandal hit that company a few years ago. (Avon’s business is struggling in almost every key market.)
As a privately owned company, Amway has been spared the drama that has slammed some of its other direct-selling peers that faced regulatory and investor scrutiny: personal care products maker Nu Skin Enterprises NUS -3.63% was fined earlier this year by Chinese authorities over its product claims, while nutrition company Herbalife HLF -0.10% is in the throes of a battle with activist billionaire investor Bill Ackman, who claims it is operating an illegal pyramid scheme.
Amway Chairman Steve Van Andel, the son of one of the company co-founders, recently spoke with Fortune about criticisms of the direct-selling business model, its China success,
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Amway To Make India Exporting Hub
by Tina Williams • • 0 Comments
Times of India reports:
Direct selling major Amway plans to make India an export hub for its operations in Middle East and South Asian countries, even as its business growth here has slowed down due to lack of clarity for applicable regulations.
The company also said there is an urgent need for detailed regulations to distinguish genuine direct sellers from sham players and to give a sense of legitimacy to the industry.
“We need more clarity in the regulations so that the growth level is up. Few years ago, it had a very strong double digit growth which has slowed down and there is a need for a better understanding of legitimate direct selling company,” Amway managing director & CEO William S Pinckney told PTI.
Amway, which is setting up Rs 600 crore unit at Nilakottai in Tamil Nadu is also looking for further expansion along with additional plant as the company is mulling to make India a hub for its Middle East and neighbouring countries as Sri Lanka, Bangladesh etc.
“We are looking outside Indian markets, like Sri Lanka, Bangladesh, UAE, Middle East. We think and believe that India can be an export hub to those market. That could cause us more quickly for look for more investments
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Amway One By One Recognized As One Of The Best Community Improvement Programs In The World
by Tina Williams • • 0 Comments
Corporate Citizenship Awards honor business initiatives that make a significant, positive impact in society.
Last week, Amway One by One was recognized as one of the Best Community Improvement Programs in the world by the U.S. Chamber of Commerce Foundation at a formal event in Washington DC.
The Corporate Citizenship Awards honor business initiatives that make a significant, positive impact in society. For 15 years, finalists in the Citizens Awards exemplify the continued evolution of the corporate citizenship field, defining its movement from the periphery of business activity to the strategic alignment with the sector’s core.
Amway One by One went on to share their thanks:
“In the United States, it’s the Thanksgiving holidays and we have so much to be thankful for.
We want to thank all of the Amway Business Owners and employees who have given time, resources and voice to help in the local communities of moer than 100 countries and territories through the Amway One by One Campaign for Children over nearly 12 years.
We also thank all of our great partners – nonprofit organizations, government agencies, academic institutions, celebrity spokespeople – who ensure that our collective investments have a meaningful impact.”
About Amway
Amway is an American company using multi-level marketing techniques to sell a variety of products, primarily in the