Amway’s 2016 sales hit $8.8 billion despite softening Chinese market

Direct Selling company Amway said its sales reached $8.8 billion last year, despite the softening of the Chinese market.

“Across the world, Amway did well in 2016,” Amway Chairman Steve Van Andel said, despite the company’s posting a decline of 7 percent when compared to 2015 figures.

He said the company recorded increased sales in seven of their top 10 markets, saw double-digit percentage growth in nine additional markets, and continued to evolve the business in China, as they leverage on the shifting market conditions and achieve its long-term growth potential.

“Above all, we are pleased to see the continued and growing relevance of the direct-selling model in today’s marketplace, as people place real value on personal recommendations and technology enables our distributors to connect with customers at any place at any time,” he said.

For the year ending December 31, 2016, sales by product category was led by nutrition at 49 percent (+3 percent from 2015); beauty and personal care, 25 percent (same as 2015); durable products, 15 percent (-1 percent from 2015); home care, 7 percent (same as 2015); others, 4 percent (-2 percent from 2015).

The top 10 nations for Amway were China, the United States, South Korea, Japan, Thailand, Taiwan, India, Malaysia, Russia and Hong Kong.

Nine of Amway’s markets experienced double-digit percentage growth in 2016, compared to the figures two years ago.

Major products launched last year included the Truvivity by Nutrilite skin-hydration line; Artistry Flora Chic, the first premium fragrance from Artistry; and the continued rollout of Artistry Supreme LX, luxury, antiaging face and eye creams.

The latter is exceeding sales estimates and distributors have found success in pairing it with premium skin-care lines, such as Artistry Hydra-V.

Meanwhile, Amway’s BodyKey by Nutrilite weight-management program has found success in Southeast Asia, as quality products are combined with a community-based program focused on weight loss and healthy eating.

In fact, over 70,000 people in the region participate in these programs and involvement continues to grow.

Following Amway’s acquisition in 2015, the XS brand of energy drinks, snacks and sports nutrition products is expanding rapidly, achieving a 40-percent sales growth this past year.

It is now available in nearly 50 countries and its launch of sports nutrition products in 2016 exceeded sales goals.

Amway sees great opportunity in 2017, as it becomes more optimistic about entrepreneurship and member-sellers envision themselves as business owners.

The 2016 Amway Global Entrepreneurship Report (Ager) showed 77 percent of people expressed positivity about entrepreneurship, 43 percent could imagine starting a business of their own and 52 percent of millennials could imagine themselves starting an enterprise.

Another factor is the direct-selling business model continues to become attractive since it has grown by 20 percent globally, according to available figures over the last four years. The same data in 2015 from the World Federation of Direct Selling Associations pegs annual sales for the industry at $183.7 billion.

“We believe that in a world where people have more choices than ever before—specifically in how they make money, where they find products and who provides them with tips and insights—that we’re well positioned to help individuals meet their varying needs through the choice of an Amway product or Amway business opportunity,” said Doug DeVos, Amway president and chairman of the World Federation of Direct Selling Associations.

“Nearly 60 years after we opened for business by helping others open for business, many things have changed—but the value of a business opportunity that is open to everyone isn’t one of them,” he said.

Article Source: businessmirror.com