Photo: The nutrition category accounted for half of Amway sales in 2016.
Amway Corp. said Wednesday that revenue fell 7 percent in 2016, driven by soft sales in China, the company’s largest market.
In the past 12 months, overall revenue amounted to $8.8 billion, compared with $9.5 billion in 2015. The private company did not break down the results by market, but management said the top 10 markets by revenue were China, United States, South Korea, Japan, Thailand, Taiwan, India, Malaysia, Russia and Hong Kong. Sales were up in seven of those 10 markets.
“Across the world, Amway did well in 2016,” said Steve Van Andel, Amway Chairman, in a news release. “We experienced sales growth in several top markets, saw double-digit revenue growth in nine additional markets, and continued to evolve the business in China as we seek to take advantage of shifting market conditions and achieve the market’s long-term growth potential.”
Amway has a portfolio of more than 450 nutrition, beauty and home products, which are sold exclusively through Amway Business Owners (ABOs). In 2016, nutrition continued to lead all other product categories, accounting for half of total sales. The company’s nutrition line, Nutrilite, is the world’s top-selling vitamins and dietary supplements brand, according to research by Euromonitor International. Beauty and personal care products accounted for another 25 percent of sales, and durable products 15 percent.
The XS brand exceeded sales goals with 40 percent growth in the past year. Amway acquired the energy drink brand in 2015, but has been sole distributor since 2003. Under Amway’s ownership, the product line has expanded to include snacks and, as of 2016, sports nutrition offerings.
Going forward, the direct sales leader sees plenty of reasons for optimism, not least of all the results of its 2016 Amway Global Entrepreneurship Report. The report, based on a survey of more than 50,000 individuals in 45 countries, found that 77 percent of people are positive toward entrepreneurship and 43 percent could imagine starting their own business, an opportunity offered by Amway and other direct selling companies. Additionally, according to World Federation of Direct Selling Associations (WFDSA) data, over the past four years direct selling has grown by 20 percent globally.
“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 WFDSA.