The Hindu Business Line : A decade on, Amway feels it has just started out

Chennai, May 5 Amway, which will complete a decade of direct selling in the country next month, says that the company has taken a long-term view in India and in the first decade of operations, has set a strong foundation for growth.

“We do think that we have just started out in India. We have built the right product portfolio and positioned ourselves for growth in the country,” said Mr Bill Pinckney, Managing Director and Chief Executive Officer of Amway India Pvt Ltd.

According to him, the company was keen to get its act right and there was a need to adapt the business for the Indian market. He added that the direct selling industry will boom in the next 10 years as the middle-class segment expands.

Providing a comparison, he said that while the direct selling industry in India stood at Rs 3,000 crore currently, it was at Rs 15,000 crore in a developing economy like Mexico, which has a population of 90 million.

The huge gap, he said, could be put down to the fact that the industry was a late entrant in India, starting out in 1998.

In an effort to reach out to a wider cross-section of consumers, Amway has launched a range of products under the Great Value brand aimed at the mass market.

The launch of the range, comprising coconut oil, amla hair oil, shaving cream, hair cream and disposable razors, follows close on the heels of the launch of the Attitude range of cosmetics in December last.

The latter, priced about 30 per cent lesser than the company’s super-premium Artistry range, is slotted in the premium category.

The Great Value range is priced on par with other brands available in the retail segment, said Mr Pinckney, adding that the brand value built up over the past few years would help the company sell the new line in the market.

Speaking with journalists on a company-sponsored trip to the manufacturing site of Amway’s largest contract manufacturer, Sarvotham Care, in Baddi (Himachal Pradesh), he said the company was bullish about its growth prospects and was targeting a turnover of Rs 1,000 crore in calendar year 2008. It had recorded a sales turnover of about Rs 800 crore in 2007.

When asked about a perceived dip in its presence in the marketplace with one coming across fewer business owners, he said this could be attributed to the fact that the company had been able to develop a base of customers and a percentage of sales was now being conducted on the basis of referrals over the phone.

The company’s products fall into four categories: health and wellness products, cosmetics and skin care, personal care and home care. Mr Pinckney said that the company would be expanding its product portfolio with the launch of some surprise products later this year.

Related Stories:
Amway offers its distribution network to MNCs
Amway India launches TV campaign
Amway adding more offices, products in India