Amway India-From Direct Selling to Omni Channel Business Strategy |
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The ‘Direct Selling’ model was considered the oldest distribution channel in history and came into existence alongside the development of various civilizations. In the 20th century, several associations which promoted direct selling came into existence in various countries across the world... |
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| In September 1959, Amway set up two new divisions – ‘Amway Sales Corporation’ to procure inventory products and to handle sales and marketing plans and the ‘Amway Services Corporation’ to handle insurance and other benefits for distributors. In 1960, Jay and Rich acquired Eckle Company, the original manufacturer of LOC, and changed its name to Amway Manufacturing Company. After a few months, they launched another biodegradable powder detergent named SA8 and other household products like dishwashing liquid, aerosol shoe spray, hair products, and cosmetics...
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| The high growth potential of the Indian market prompted Amway to make its foray into India. In August 1995, it established Amway India Enterprises Pvt. Ltd. (Amway India) with an investment of more than Rs. 2 billion after getting approval from India’s Foreign Investment Promotion Board (FIPB).. |
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| In the 2000s, Amway India took the help of various organizations and e-learning centers to educate and train ABOs about the Amway business and motivate them. Joining hands with those organizations Amway formed Amway Motivational Organizations (AMOs), which were independently operated by senior distributors of Amway (Refer to Exhibit V for Details of Organizations Those Became AMOs)... |
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| As of 2007, Amway India was Amway’s seventh ranked market in the world. It sold 75 products in four categories in India – nutrition and wellness, beauty, personal care, and home care... |
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| In 2015, Amway India signed on leading Indian movie actor Farhan Akhtar (Farhan) as the brand ambassador of its Nutrilite range of products. In almost two decades of its presence in India, Farhan was the company’s first brand ambassador. Anshu Budhraja (Budhraja) Amway India CEO, said, “In India... |
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| Even though Amway India followed the highest standard of the industry code of ethics and offered different schemes for protection of consumers, it faced several challenges in its direct selling business in the country.. |
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| By the end of 2017, Amway India was considered to be one of the leading players in the Indian direct selling industry. For the FY 2017-18, Amway India had sales of Rs 1.8 billion, and this was expected to touch Rs 2 billion in FY 2018-19. In this, each segment contributed significantly... |
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Exhibit I: Growth of Direct Selling Industry in India as Of 2018
Exhibit II: Multi-Level Marketing Structure of Amway
Exhibit III: New Structure of Amway
Exhibit IV: Information on Illegal Pyramid Selling Structures
Exhibit V: Details of Organizations those Became AMOs
Exhibit VI: Amway’s Revenues From 2012- 2016 (Rs. in billions)
Exhibit VII: Technologies of Amway Digital Stores
Exhibit VIII: List of Amway Competitors (Direct selling)
Exhibit IX: Amway India’s Segment-Wise Contribution for 2018
Exhibit X: Different Categories of Amway Products as of 2018, available in India
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