Amway, the world’s largest direct selling company, has reported sales of $8.6 billion for the year ending Dec. 31, 2017. The Ada, Michigan-based company achieved sales gain in several key markets, including South Korea, Thailand, Russia and India. Total sales in the second half of 2017 grew by 3 percent, compared to same period of the previous year, led by China and the United States. The company forecasts year-over-year sales growth in 2018.
“We have weathered a challenging period for our business in China that, combined with less than favorable exchange rates, have impacted our sales for a few years,” Amway President Doug DeVos said. “That downward trajectory has leveled off and now, with our China business rebounding faster than expected, we are forecasting sales growth in 2018.”
Sales growth is forecasted to build off positive momentum from digital investment, social selling trends and second-half sales results.
“Technology is evolving at a rapid pace and we are evolving and investing right along with it,” said Steve Van Andel, Amway’s chairman of the board. “The next-generation entrepreneur wants to run his or her business on the go. Meeting the unique needs of ‘next’ entrepreneurs will be the key to our success and long-term growth, as will meeting the digital needs of consumers.”
Some of the company’s initial digital investments are already coming online and the results are positive.
In China, approximately 70 percent of product purchases are already made through digital and social platforms, and two-thirds of those are via mobile devices. Amway also launched a variety of online platforms, apps and digital tools for sellers and buyers in the Philippines, South Korea and the United States.
While the company’s investment in digital is growing, so is growth in Amway’s product categories. In 2017, nutrition and weight management products accounted for 50 percent of Amway’s sales.
Amway also continues to see strong sales growth overall from some of its top-selling brands, including Nutrilite supplements; Artistry skin care and color cosmetics; eSpring water treatment systems; and XS Energy drinks, snacks and sports nutrition. This past year, XS Energy sales grew more than 30 percent when the segment expanded to new markets, including China and India. Further expansion is planned for 2018.
Across its product categories, Amway is focused on innovation to appeal to the new generation of consumers and their changing expectations on how companies interact with them. For example, the company released its first smart home product called Atmosphere Sky. This is the newest edition of its top-selling air treatment system and allows users to control the device using their smartphone from anywhere in the world.
“Globally, we see marketplace trends in employment and products converging on everything we offer at Amway,” said DeVos. “With our continual investment in products of the future and a strong, proven business plan, there has never been a better time for our business than now.”
Amway’s top 10 markets, based on 2017 sales, were China, United States, South Korea, Japan, Thailand, Taiwan, India, Russia, Malaysia and Hong Kong.