ADA, Mich., (Feb. 12, 2018) – Amway has announced sales of $8.6 billion USD for the year ending Dec. 31, 2017. The company achieved sales gains in several key markets, including South Korea, Thailand, Russia and India. Total sales in the second half of 2017 grew by 3 percent, compared to the same period of the previous year, led by China and the United States. The company forecasts year-over-year sales growth in 2018.
”We have weathered a challenging period for our business in China that, combined with less than favourable exchange rates, have impacted our sales for a few years,” Amway President Doug DeVos said. ”That downward trajectory has leveled off and now, with our China business rebounding faster than expected, we are forecasting sales growth in 2018. Several factors further support the company’s 2018 forecast, including steady growth in bellwether markets like South Korea and Thailand, expanding investments in digital platforms and distributor tools, and new product launches that are exceeding expectations.”
The company’s significant investment in digital platforms is considered a key sales driver in 2018 and beyond.
”Technology is evolving at a rapid pace and we are evolving and investing right along with it,” said Steve Van Andel, Amway’s Chairman of the Board. ”The next-generation entrepreneur wants to run his or her business on the go. Meeting the unique needs of ‘next’ entrepreneurs will be the key to our success and long-term growth, as will meeting the digital needs of consumers.”
Some of the company’s initial digital investments are already appearing online and the results are overwhelmingly positive.
In China, approximately 70 percent of product purchases are already made through digital and social platforms, and 2/3 of those are via mobile devices. The nation is widely seen as the place where digital is the most advanced globally, and it is there that the company is seeing the impact of this merger of direct selling and ecommerce the most. The company has launched new apps and digital experiences in China, like the Online Studio, that have transformed the buying and engagement experiences for ABOs and their customers – driving overall success.
In the Philippines, the company launched an intuitive and streamlined online experience for ABOs called AmwayNow that offers fresh content for sharing with customers and others, integration with calendars, social feeds and mobile contacts, and the latest news from Amway. Meanwhile, in South Korea, an augmented-reality beauty app called YouCam features virtual make-up application and product recommendations. In the United States, the company has launched a revamped digital education platform that is resulting in strong reviews and significantly increased usage rates.
Localised experiences like these, along with an overhaul of the company’s digital ecommerce sites, are being amplified by global solutions such as MyBiz, a business-management platform that recently launched a deepened analytics package.
While the company’s investment in digital is growing significantly, so is customer demand for Amway’s product categories. In 2017, nutrition and weight management products accounted for 50 percent of Amway’s sales – showcasing an increasing desire on the part of the public for healthy products. Even greater opportunity lies ahead, led by the launch of a reformulated Nutriway Double X, the company’s top-selling multivitamin/multimineral supplement.
Additionally, the Nutrilite/Nutriway brand of vitamins and supplements exemplifies Amway’s commitment to ingredient traceability and transparency, which remains a key attribute sought by customers around the world. The company projects its nutrition category sales to grow as interest in high-quality health and wellness products increases.
Another consumer trend that Amway is well poised to capitalise on is the global desire for high-efficacy and reliable skincare.
Skincare continues to be beauty’s most valuable global category with consumers looking for natural ingredients that also deliver performance. Amway’s Artistry brand of skincare and cosmetics leverages powerful ingredients from nature, backed by science, for proven benefits and results.
For example, Artistry Advanced Vitamin C + HA Treatment, a serum with proven results in reducing expression lines, was launched in 2017 with acerola cherry extract from Amway’s certified organic farms and contains the highest concentration of Vitamin C among Artistry products. Beauty and personal care made up 26 percent of Amway’s sales in 2017.
Built on innovative products and unique experience-driven events, Amway continues to see strong sales growth for the XS Energy brand. This past year, sales grew more than 30 percent as the line of energy drinks, snacks and sports nutrition products expanded to new markets including China and India. Further expansion is planned for 2018.
Across its product categories, Amway is focused on innovation to appeal to the new generation of consumers and their changing expectations on how companies interact with them. Home and durable products, which made up 21 percent of the company’s 2017 sales, were the focus of several new innovations this past year. For example, the company released its first smart home product called Atmosphere Sky. This is the newest edition of its top-selling air treatment system and allows users to control the device using their smartphone from anywhere in the world.
More consumers are building an interconnected lifestyle in their homes and beyond through personal devices. While many companies are developing products with the Internet of Things (IoT) in mind, Amway’s Atmosphere Sky home air treatment system is unique in the IoT space because of how its connected system is built. Amway’s digital investment extends to mobile apps, third-party integrations (like Amazon Web Services) and web apps to support product development for a new unified product experience. Atmosphere Sky has been most directly impacted by this investment thus far, and it is just the beginning of Amway’s goal to build the connected home in ways that few companies – if any – have explored.
“Globally, we see marketplace trends in employment and products converging on everything we offer at Amway,” said DeVos. “With our continual investment in products of the future and a strong, proven business plan, there has never been a better time for our business than now.”
Amway’s top 10 markets, based on 2017 sales, were China, United States, South Korea, Japan, Thailand, Taiwan, India, Russia, Malaysia and Hong Kong.
To access all the latest facts and figures about Amway, visit amwayglobal.com/newsroom.
Amway is an $8.6 billion direct selling business based in Ada, Michigan, USA. Top-selling brands for Amway are Nutriway™ vitamin, mineral and dietary supplements, Artistry™ skincare and color cosmetics, eSpring™ water treatment systems* and XS™ energy drinks – all sold exclusively by Amway Business Owners. Global sales in 2016 made Amway the No. 1 direct selling business in the world, according to the 2017 Direct Selling News Global 100. The company’s annual sales figure includes revenue from direct selling operations and other business holdings. For company news, visit amwayglobal.com/newsroom.