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direct selling 2016-08-05

Learn complexities of direct selling via Amway

In conversation with Franchise India, Rajat Banerji, Head, Corporate Affairs, Amway India Enterprises Pvt Ltd, reveals the brand’s women-oriented business model.

Even as the direct selling market in India awaits a well-defined set of rules, it certainly is contributing to women empowerment. More than 60 per cent of direct sellers in India are women and one such name hitting the right notes in this area is the beauty products brands, Amway. In conversation with Franchise India, Rajat Banerji, Head, Corporate Affairs, Amway India Enterprises Pvt Ltd, tells us how the brand is providing low-cost opportunities to women, making entrepreneurs out of them and how it’s increasing its distributor base in the challenging direct selling market.

Elaborate your business model?

Our business is like a conventional FMCG where we engage in sourcing, manufacturing, distribution and post-marketing support except that our distributors who engage in one-on-one sale of products also provide extensive post-marketing support through personal contact with consumers. For this they rely on the in-depth knowledge about the products gained through intensive training and education provided by the Company. The distributor receives commission based on the sale of products by him/her personally and by his/her team whom he/she trains and mentors. This is similar to the commission a sales supervisor of a conventional FMCG company would get when a salesman under him makes a sale.

What is your brand’s USP?

We offer people an opportunity to own a business by selling more than 130 high-quality nutrition, beauty, personal care and home care products, most of which are manufactured right here in India. Amway complies with the highest standard of industry code of ethics and always offers protection to the consumers. All of Amway's products are backed by a 100 per cent money back guarantee, allowing ABOs to ‘try’ the business, or their customers to try the product. To extend this commitment to the consumer and distributor protection, Amway India does not charge any entry fee and distributors are free to exit any time and all unsold inventories will be re-purchased by the company.

What are the challenges you face in the direct selling business?

The lack of clarity relating to the business of direct selling in India is a key challenge for the industry. As of now, there is no specific legislation which regulates the activities of the direct selling industry in India, unlike other countries like Malaysia, Thailand, Vietnam, Singapore or even Hong Kong, which have separate legislation for direct selling. The Indian direct selling industry has a huge potential.

Why is this business a woman oriented one? How much are women contributing to your revenue model?

The direct selling industry has contributed significantly to the area of women empowerment. More than 60 per cent of the direct sellers are females. The part-time or full-time income they earn and the business skills we provide have helped create more successful female entrepreneurs. We are investing in women and their future, which will help with overall economic stability and the reduction of inequality. At a FICCI event in Guwahati recently, there were women distributors (not just from Amway, but others) who support groups of 25-30,000 strong. Clearly, this industry does have the ability to offer gainful self-employment for women.

Amway has helped empower millions of women around the world by offering them a low-cost, low-risk opportunity to achieve their goals by owning their own business. This fact is especially gratifying to us. There are countless examples of women who have achieved success in the direct selling opportunity provided by Amway.

Elaborate the training and support that you will offer to your distributors?

In order to support and empower people who join Amway, the company provides free training to all its distributors. Amway India conducts over 18,000 training sessions during an average 12-month period. Amway training offers specific skill development opportunity to all attendees in the area of selling skills, business development skills and team management skills. These training interventions are designed to help people build confidence and self-esteem in general and a sustainable and profitable Amway business in specific.

What business opportunity do you offer?

  • Commission is based on sale of product
  • Offer high quality products
  • Buy-back guarantee of products to ensure protection
  • Offer genuine business opportunity- No cost of entry
  • Earnings are dependent on sales results – the more products sold, the better the returns
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