Abstract

The case “Amway India – From Direct Selling to Omni-Channel Business Strategy” talks about the reasons that led India’s leading direct selling FMCG company, Amway India Enterprises Pvt. Ltd. (Amway India) to shift to an Omni-channel strategy. The case starts out by taking a brief look at the history of Amway Corporation (Amway), the parent company, and its unique business model the ‘Amway Business Model’, which incorporated the dual principles of direct selling and multi-level marketing (MLM) strategy. It then elaborates on the various measures taken by the company to adapt its business model to Indian conditions. The case takes an in-depth look at the company’s distribution system within India. It then describes the company’s shift to an Omni-channel strategy in order to serve the distributors through an e-commerce platform and retail outlets called Brand Experience Centers (BECs). The case then provides the reasons why the company decided to become a B2C player through e-commerce and a variety of retail stores such as Express Pick-up centers (XPP) and digital stores. It also highlights the challenges faced by the company in India, primarily due to the lack of a clear definition of ‘direct selling’ and absence of a regulatory framework. Can Amway India leverage its leading position in the Indian direct selling space to emerge as a strong competitor to other FMCG companies in India in the future?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Learn the complexities of direct selling combined with a multi-level marketing (MLM) strategy.
• Analyze the localization strategy of a global company.
• Evaluate the reasons that drive a direct selling company to adopt an omni-channel strategy.
• Examine the challenges faced by a company with a unique business model.

Keywords

Amway; Direct Sales; Distribution Strategy; Direct Selling Agents; B2B; B2C; Personal Selling; Sales Force Management; Amway Business Model; Omni-Channel Strategy; Localization Strategy; Multi-Level Marketing (MLM); Pyramid Selling Structures; Regulations; Business Model