Wall Street Journal reports: Amway Corp. is betting that a “Made in the U.S.A.” label will hold its appeal with consumers in Asia.
The direct seller is spending $200 million on four new factories and a new research lab in the U.S., including a new plant in its home state that will make soft-gel casings for dietary supplements and other pill products.
The investment comes even as the company sees some of its fastest growth in emerging markets far from its headquarters in Ada, Mich. Manufacturing in the U.S. for buyers in Asia adds costs to Amway’s supply chain and up to three weeks to the time it takes to bring a product to market. That can make it difficult to respond to fast-changing consumer tastes.
But the company hopes those disadvantages will be outweighed
Tag Archive for Amway
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Amway Makes Major Social-Media Push
by Tina Williams • • 0 Comments
Amway Corp., a U.S.-based direct-selling company, has announced plans to expand into China’s online retail sector, as the world’s largest direct selling company in terms of sales seeks better options to increase its revenues and lure younger customers in the country, the China Daily reported.
The $10.8-billion direct-selling company made the announcement about digital strategy on Aug. 2 in Guangzhou, Guangdong Province. The company also expressed willingness to launch an online social networking platform and mobile applications, as a move to go beyond its existing offline direct-selling market.
According to the report, the company’s sales representatives can purchase products through the social networking platforms and the company will be responsible for delivering the goods to their consumers.
Frances Yu, the company’s chief marketing officer, said that the online method has been tested by the company
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Amway Opens $42 Million California Manufacturing Facility
by Tina Williams • • 0 Comments
Ada-based Amway Corp. has opened its new manufacturing and research and design facility in Buena Park, Calif.
The direct-selling giant has invested approximately $42 million in facilities at the site, which will manufacture the company’s Nutrilite brand of products, according to a statement.
Amway plans to open four additional manufacturing sites across the U.S. as part of its $322 million expansion project that it first announced in 2012.
“These facilities are a key part of the brand’s future and we couldn’t be more excited to continue the legacy of nutrition manufacturing from this site in California,” Chairman Steve Van Andel stated.
The manufacturing expansion included two sites in Michigan, including adding nutrition powder products at Amway’s world headquarters site and converting the Spaulding Avenue warehouse into a manufacturing facility for vitamins, minerals and dietary supplements.
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Amway Sees Aging Society As Biz Opportunity
by Tina Williams • • 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 India’s Focus On Skincare Expected To Bring 18% Growth
by Tina Williams • • 0 Comments
Amway India is betting big on its skin whitening range, which accounts for around 60 per cent of the Rs 7,500-crore skincare market.
The direct-selling FMCG company expects to clock an 18 per cent growth in its beauty brand Attitude on the back of its new “Be Bright” range of products. It will also invest Rs 20 crore on the marketing for Attitude, slated to be worth Rs 200 crore in three years.
“Beauty and personal care for Amway India is important. In India, the market for whitening is around 57-60 per cent of the total facial care market. We felt we were underrepresented. Our portfolio was not complete.
“We did a research with our consumers. Our research centres were – Calcutta, Nagpur and Chennai. And, we came out with the Be Bright range,” said
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Amway Breaks Guiness Book Of World Records And Raises Malnutrition Awareness
by Tina Williams • • 0 Comments
When Amway™ asked for help in raising awareness about global childhood malnutrition through its Nutrilite™ Power of 5 Campaign, more than 260,000 people across the globe raised their hand to do just that. And they broke a GUINNESS WORLD RECORDS™ title in the process.
As a global leader in nutrition research, development and innovation, Amway paired its expertise from Nutrilite™, the world’s number one selling vitamins and dietary supplements brand*, with its passion for helping people live better lives. Amway™ last year launched the Nutrilite™ Power of 5 Campaign to expand the distribution of the Nutrilite™ Little Bits™ supplement. At the time, the micronutrient powder with 15 essential vitamins and minerals for children was being distributed in two countries through established programs run by Non-Governmental Organizations. It has since expanded to nine countries
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Amway Appoints New CFO, Recruited From Apple
by Tina Williams • • 0 Comments
Ada-based direct selling giant Amway Corp. announced today that it hired Mark Stevens as its new chief financial officer, according to a statement.
Before his appointment, Stevens was responsible for a $153 billion portfolio as the vice president of worldwide sales finance for Apple Inc. (Nasdaq: AAPL). Prior to working at Apple, Stevens spent 21 years of his career in Asia working for large technology companies such as Motorola Solutions Inc. and Dell Inc.
Stevens replaces Mike Cazer, Amway’s previous CFO who was appointed the role of COO in 2014.
About Amway
Amway is an American company using a multi-level marketing model to sell a variety of products, primarily in the health, beauty, and home care markets. Amway was founded in 1959 by Jay Van Andel and Richard DeVos.
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Forbes Speaks With Amway’s Steve Van Andel
by Tina Williams • • 0 Comments
Dan Schawbel from Forbes: I spoke with Steve Van Andel, the chairman of Amway, who is responsible for managing daily operations of the company with Amway President Doug DeVos.
Van Andel is the eldest son of Amway Co-Founder Jay Van Andel, who, with Rich DeVos, started Amway in 1959 in Ada, Michigan. Since then, Amway has grown into the world’s largest direct selling company. Over the past two decades, Van Andel has led a strategic transformation of the company with a focus on growth through innovation, driving double-digit growth. Prior to being named chairman, Van Andel served as vice president with responsibility for Amway’s business operations in North and South America. He also served as vice president of marketing.
Recently, Amway acquired the XS Energy Brand, an energy drink brand that has exhibited positive momentum with the next-generation
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Amway Sales Fell 10% To $10.8 Billion In 2014
by Tina Williams • • 0 Comments
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