AMWAY INDIA ENTERPRISES

Background
Amway Corporation, USA, a 45-year-old company, is among the largest Direct Selling companies in the world. It has a presence in 80 countries & territories. Amway Corp. was set up by two young entrepreneurs in 1959 in the United States. Its entire business is based on the concept of person-to-person selling. Today, more than 3 million independent business owners distribute Amway products across the world. Its revenues in 2003-04 stood at US$ 137.66 million. Amway Indias Head Office is located in New Delhi. It has 5 Amway Distribution Centres (ADCs) in Delhi, Mumbai (Bombay), Kolkata (Calcutta), Bangalore, and Chennai (Madras). The company also has 48 Pick Up Centres (PUCs) and 39 City Warehouses which are managed by Service Partners. It provides direct and indirect employment to around 2000 people in different locations and boasts of over 400,000 active distributors across the country. and Cosmetics. Nutrilite, the brand name under which Amway sells its Nutritional products is a leader in multi-vitamin and multi-mineral dietary supplements. Artistry, the global cosmetic brand from Amway is amongst the worlds top 5 prestige brands of skin care and colour cosmetics. Globally, Artistry is the No. 1 cosmetics brand in the Direct Sales category. Amway increases the appeal of its products by making most of them environment friendly, and by informing the consumers that they are not tested on animals. Amway offers 100 per cent money back guarantee both on business opportunity and products. Amways Business Owners and customers are encouraged to first try its products. It encourages the return of its used product bottles for recycling and to prevent their misuse. perception through activities like: Braille Textbook Project - Amway India has partnered with NGOs like NAB (National Association for the Blind) in printing and distributing Braille textbooks to school-going visually challenged children in 15 states in India. Amway has also set up a computer centre at the Ram Krishna Mission Blind Boys Academy, Narendrapur, West Bengal. A total of 80,000 visually impaired children have benefited from this project. Amway India has funded a state-of-the-art, fully equipped Mobile Dental Clinic for the Rotary Club, Delhi. The Clinic caters to the oral healthcare needs of underprivileged sections of society.

Leading Player in Direct Selling

Amway is Indias leading FMCG company in the direct selling channel. It introduced foreign consumer goods to the Indian customers for the first time by pioneering the direct selling concept in India.

Future plans
Amway will be following an aggressive new product launch strategy to further strengthen its presence in all the categories it operates in. It has plans to start local manufacturing of more products, which are currently being imported. It also plans to target rural markets in the future. Amway India expects to emerge as the major product sourcing base for Amway International.

Factors for Success

In India Amway has adopted a PUC model - partly to overcome certain infrastructure issues and partly to allow the Indian consumers to see, touch and feel its products before buying them. Every PUC operates as a full service centre. Amway India has opened Local Ordering Centres (LOCs), where Amway Business Owners can place their orders. These are then delivered to the address given by them. To cater to the price sensitive Indian customer and induce trails of its products, Amway India introduced products in multiple pack sizes including sachets. Amway India has developed India specific brands.

Creating an effective and extensive distribution channnel

Amway sells and promotes its products through the value-for-money pitch. It has a strong group of 0.40 million distributors which covers over 1600 cities and towns through the home delivery network set up with the help of independent logistics partners. Improving the sales force Direct Selling requires expertise and special skills. Amway India offers free and unlimited training across the country to its Business Owners and prospects. Over 1.3 million attented its training sessions in 2003.

Amway India Enterprises: AT A GLANCE

Amway Corporation USA: amongst the largest direct selling companies of the world. 3 million independent business owners/ distributors India. Head Office: New Delhi; 5 Distribution Centres: Delhi, Mumbai, Kolkata, Bangalore and Chennai. 400,000 active distributors across 1,500 cities 4 product categories: Personal Care, Home Care, Nutrition and Wellness, Cosmetics Factors for success: Diverse and innovative product portfolio; Effective and extensive distribution chain; Consistent improvement of efficiency of sales force; Local manufacturing; Responsible social image Future Plans: Foray into rural markets

Amway India was established in 1995 and it commenced commercial operations in May 1998. It manufactures nearly 85 per cent of its products locally, through third-party manufacturers. Amway India operates in four categories Personal Care, Home Care, Nutrition and Wellness and Cosmetics range.

Leveraging Indias manufacturing advantage

Most of Amway India products are manufactured in India through third party contract manufacturers. Amway has invested over US$ 4 million to upgrade the manufacturers production facilities to international standard.

Diverse and innovative Product portfolio

Amway has a very diverse and rich product portfolio in India. Starting from a portfolio of 6 products, Amway India has grown to over 50 products in six years. It offers world class products in four categories Personal care, Home care, Nutrition and Wellness

Building social ties

Being a direct selling company, Amway depends on the trust it builds in the community. Amway takes part in social activities to develop a good public
US COMPANIES IN INDIA