Amway, the world’s largest direct seller, announced sales of $8.4 billion for the year ending Dec. 31, 2019, down 5 percent from 2018 figures.
China, Amway’s largest market, saw significant declines in the overall direct selling industry, yet Amway was able to improve market share and move up a spot to become the country’s number two direct selling company.
“In 2019, we celebrated our 60th anniversary and now we are looking ahead to our 70th to unleash entrepreneurship for the next generation,” said Amway Chief Executive Officer Milind Pant. “Amway is already aligned with some of the biggest global trends, like the gig economy, increasing consumer demand for product experiences that support a healthy lifestyle, and the rise of communities on social media that connect people with similar passions and interests. Our new multi-year growth strategy and investment plan will help ABOs capitalize on these trends to support their customers.”
Amway is investing more than $500 million in 2020 in digital platforms, product innovation and independent Amway Business Owner (ABO) compensation, all to drive global enterprise growth and enable ABOs to better meet the needs of their customers.
According to the company, one new digital platform that already is helping ABOs provide a more compelling customer experience is the 3E “Easy, Early, Earning” platform in China. 3E focuses on selling products through social commerce, in partnership with global technology leader Tencent. Through the platform, ABOs receive commissions from new customer referrals and new customers can receive product discounts by sharing with friends. Amway is investing in multiple digital capabilities to globally roll out similar programs.
Another investment area for Amway is Core Plus+, a new incentives program that increases the earning opportunity for those who choose to start their business with Amway and rewards best practices in building a strong, sustainable business. Benefits include more earning potential, more consistency and more predictability so ABOs can set goals and make plans for more than just the year ahead.
The company also will continue to invest in traceability in nutrition and beauty through natural ingredients, especially the botanicals grown on its own certified organic farms – nearly 6,000 acres of certified organic farmland in the U.S., Mexico and Brazil, where Amway grows, harvests and processes plants using sustainable farming methods. These plant ingredients have long been a key differentiator for Nutrilite supplements and will also prominently feature even more in Artistry skin care.
The nutrition category of vitamins, dietary supplements and weight management products continued to be the top sales category for Amway, representing 54 percent of sales, up one percent from 2018. Beauty and personal care were 25 percent of sales, down less than one percent from last year.
Amway’s top ten markets include China, the U.S., Korea, Japan, Thailand, Taiwan, India, Russia, Malaysia and Hong Kong.