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Apr, 17 2011

DIRECTED TOWARDS DIRECT SELLING

Amway came into existence in Michigan (US) in 1959 by a single product. Over the last 50 years, it has become a household name around the world known for its unique business opportunity and world-class quality products.

Amway came into existence in Michigan (US) in 1959 by a single product. Over the last 50 years, it has become a household name around the world known for its unique business opportunity and world-class quality products. William S. Pinckney, MD & CEO, Amway India Enterprises, talks to Abha Garyali about business and growth in India.

Please share the origin, growth and success of Amway India Enterprises Pvt. Ltd.

Amway India is a wholly-owned subsidiary of the US $9.2 billion Amway Corporation, US. Amway commenced commercial operations in India in 1998 with five offices, six products and one central warehouse in Nagpur. Today, after 12 years, Amway India is a Rs 1,790 crore company with 127 products, 55 warehouses, 135 Amway Touch Points and 5.5 lakh active distributors.

Amway is a low-cost and high-profit company. What other factors attract aspirants to the brand?

Amway is known for its superior quality product offering. All Amway products are world class in quality, carrying 100 per cent money-back guarantee.

Would it be correct to call Amway India a perfect example of home-based business? Why?

Firstly, let me define direct selling. Direct selling can be best described as  marketing of products and services 'directly' to consumers in a 'face-to-face' manner, generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, through 'explanation or personal demonstration' by an independent direct salesperson. Since genuine direct selling opportunities does not warranty inventory holding, this business is a perfect example of a home-based business, ideally suited for women.

What according to you are the reasons behind the success of the company?

Last year (2010), Amway India posted a turnover of Rs 1,790 crore, up from the previous Rs 1,407 core in 2009. This is the third successive year that Amway India has posted growth upwards of 25 per cent. Over the last few years, we have put in place some measures like infrastructure upgradation, setting up brand experience centres, product launches and advertising, which are key factors for our robust growth.

What are the marketing techniques adopted by Amway India?

Direct selling is a high-touch industry, which relies on word-of-mouth publicity. Amway has been regularly advertising in various mediums like newspapers, magazines, television, etc. Apart from this, we also participate in consumer expos, health and beauty expos, where we meet and interact with consumers.

What is the profile of your business distributors? What is the total investment needed by them? Are there any hidden costs involved?

The Amway business is open to anyone, above 18 years of age with no criminal record, irrespective of age, education, gender. The entry into the direct selling business is usually through nominal fees, usually the price of a starter kit. At Amway, the initial investment is Rs 995. There is no compulsion for business owners to hold inventory nor does Amway set any targets to its business owners.

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