Category: Amway India News

Amway India News

  • Vestige To Launch PETA certified 100% Vegan Assure Natural Range

    Vestige To Launch PETA certified 100% Vegan Assure Natural Range

    India’s homegrown MLM company Vestige Marketing Pvt. Ltd., and also the only Indian company in the world’s top 30 direct selling companies has expanded its personal care category into the natural personal care segment. The newly launched brand is Assure Natural.

    After achieving immense success following the initial launch in August, the company has launched six more new products.

    These products are Assure Natural Hair Mask, Assure Natural Hand, Assure Natural Micellar Water, Assure Natural Mud Mask, Assure Natural Multifunctional Oil and Assure Natural Facial Foam.

    Speaking on the expansion of the Assured Natural range, Gautam Bali, Managing Director, Vestige Marketing Pvt Ltd, said, “With its unique appeal and great results, Assured Natural has made a mark in the personal care segment in India. These products created a lot of anticipation among the customers and distributors and we witnessed a manifold increase in sales in our personal care business in these last two months.”

    The products under this brand are made with extracts of exotic natural ingredients that are made with the intention of caring for the environment as well as for its users.

    The range is 100 per cent vegan, not tested on animals, making it PETA-certified. The products are free from sulphates, harmful chemicals and parabens ensuring that the customer is as naturally cared for as possible, the statement added.

  • Amway sees post-COVID online sales to stay at 80-85pc

    Amway sees post-COVID online sales to stay at 80-85pc

    The company’s online business which was at 33 per cent in February hit 90 per cent during the lockdown but Amway does not foresee it will get back to pre-covid level in the future.

    Direct selling major Amway India remained bullish that its digitally focused strategy will help regain business very close to the pre-COVID level by July and its online share of sales would continue to remain high at 80 -85 per cent. The company’s online business which was at 33 per cent in February hit 90 per cent during the lockdown but Amway does not foresee it will get back to pre-COVID level in the future.

    “We expect online sales will continue to contribute 80-85 per cent to the overall sales,” Amway India CEO Anshu Budhraja said.

    All training and meetings with the direct sellers have been shifted online and the company has conducted over 3,041 online training programmes engaging over 4 lakh Amway Direct Sellers since the lockdown, he said.

    Riding on the spurt in demand for certain product categories like immunity, hygiene and health, he hoped to achieve 80-90 per cent level of business of pre-lockdown by July 2020.

    The direct selling FMCG company has tied up with ITC to distribute juices through its channel last month and the city-based FMCG conglomerate hinted to distribute more products in the health segment through this agreement.

    Amway said it witnessed excellent traction in certain categories during the lockdown and unlock 1 period, and saw a spike in the sale of immunity supporting SKUs (stock-keeping units) by almost three times, including the herbal range supporting immunity and respiratory health.

    Pre-empting rise in demand of immunity and hygiene products, the direct selling major is gearing up to increase the production of these SKUs by four times in the coming months and maintain the product availability at 95 per cent, Budhraja said.

    “We have identified around 30 SKUs, which include Nutrilite Tulsi, Nutrilite Ashwagandha, Nutrilite Natural C in the immunity space and others in the personal hygiene and home care categories,” he said.

    The Indian arm of the US-based company said the manufacturing facility at Dindigul in Tamil Nadu has sufficient capacity to manage the forecast demand. Additionally, Amway also enhanced manufacturing capacity at contract partners to ensure adequate supply.

  • Amway India to concentrate more on immunity-boosting, nutrition products

    Amway India to concentrate more on immunity-boosting, nutrition products

    • Amway, which is taking a look at its ‘portfolio’ in India as part of planned global investments, is studying how to readjust the portfolio more towards immunity, nutrition in the country
    • Amway India also expects its business to come back to at least 80-90% of pre-lockdown levels by July

    With the increased demand for immunity and nutrition products during the coronavirus lockdown, direct selling major Amway is gearing up for enhanced focus on the category and expecting up to 65% of its total business to come from it going forward, a top company official said.

    The company, which is taking a look at its “portfolio in a big way” in India as part of planned global investments, is studying how to readjust the portfolio more towards immunity and nutrition here in the country.

    Amway India also expects its business to come back to at least 80-90% of pre-lockdown levels by July.

    During the lockdown, a consumer trend has been observed with demand moving towards immunity and nutrition products, Amway India CEO Anshu Budhraja told PTI.

    “People are more attuned to consuming for their own self-care…During the lockdown, the classic case is that people did not want to go to a hospital, otherwise people earlier wanted to go to doctors for true curative (treatment). People have now moved to preventive and they see value in preventive,” he said.

    Therefore, he said, “the need for supplementation is leading to heightened awareness for stronger immunity. I think that is one big megatrend which we see. We have coined the term ‘What’s IN’ and IN stands for immunity and nutrition.”

    Budhraja further said the emerging consumer trend is also “helping our Ayurveda line” in which the company has six stock-keeping units (SKUs) out of which tulsi-based supplement saw a huge demand.

    Asked if the company would ramp up production of such immunity and nutrition products, he said, “Good companies always follow consumer demands and consumer needs. If consumer demands and needs towards immunity supporting range goes up, obviously we will support that.”

    Predicting that this market will grow over a period of time, he said, “It will grow more than the market in beauty (category) in the mid-term at least. We do see a mix change in our portfolio where immunity and nutrition will move up to almost 60-65% of the total business as compared to almost 56% at present.”

    He further said, “We envisage that these categories will grow at a much faster pace because the consumer is evolving and naturally inclined to migrate into those segment.”

    Reiterating the company’s focus on the segment as part of planned global investments, Budhraja said, “We are looking at the portfolio in a big way, how we can readjust our portfolio more towards immunity and nutrition. We are looking at multiple things around that.”

    Commenting on business resumption after the lockdown, Budhraja said after being immediately impacted, operations of the company are scaling back gradually to achieve business continuity.

    The company’s plant in Tamil Nadu has already been producing immunity and nutrition products which were included in essential items category, although beauty and home durable products were impacted.

    Out of 140 shops that Amway has in India, 90% are open and a similar percentage of warehouses have also started functioning following government guidelines. Offices are also back with 33% of employees, he added.

    “We have achieved business continuity in 60 days. After 90 days we will try and see how fast we can come back. By July I do expect us to come back to at least 80-90% of where we were in pre-lockdown,” he said.

  • Coronavirus outbreak a right time to revisit Ayurveda wisdom on prevention: Amway CEO

    Coronavirus outbreak a right time to revisit Ayurveda wisdom on prevention: Amway CEO

    Amway, which counts China as its largest market and was allowed to run its factory in Guangzhou to produce its ‘Nutrilite’ health products although others in manufacturing sector such as cars and electronics have been shut, believes India could also consider building long-term immunity and a healthy society as the Chinese have done.

    Crisis like outbreak of coronavirus provides an opportunity to revisit the ancient wisdom of Ayurveda for prevention of diseases through improved immunity and combine it with Western science for a holistic healthy living, according to global direct selling major Amway CEO Milind Pant.

    Amway, which counts China as its largest market and was allowed to run its factory in Guangzhou to produce its ‘Nutrilite’ health products although others in manufacturing sector such as cars and electronics have been shut, believes India could also consider building long-term immunity and a healthy society as the Chinese have done in the wake of the outbreak.

    Pant, the first non-family member to run the Amway business since its foundation in 1959, said the Ayurveda philosophy essentially talks about prevention.

    “This is the right time. When there’s a high consciousness in society about healthy living and prevention. This is a good time for us to go back to our roots and see what strengths are there and combine it with efficacy and Western science.

    “Ayurveda is not about curation. It’s about prevention and it’s prevention with a holistic lifestyle. In some conceptual sense, Nutrilite philosophy, and philosophy of ayurveda are very similar,” Pant told in an interview here. He said Amway sees itself playing a role towards building a healthy society as through holistic wellness.

    “I think as the Indian society gets consciousness of ancient wisdom, and combine it with science and efficacy and Nutrilite we play a small role in it. I see that being a trend going forward,” he added. Sharing the company’s experience in China, the origin of coronavirus, he said, “We’re an interesting business when such tough issues come in, like coronavirus, the consciousness of society about healthy living, and long term immunity increases”.

    The government of China, while all factories were shut in China, during the Lunar New Year, from car manufacturing to electronics production, Pant said, “The government of Guangzhou gave us a special permission for the Amway factory to remain open”.

    This was because “the government believes in China that Amway Nutrilite products are part of a long term immunity and health a society and it wants to encourage society through this crisis, to move to a long term health, consciousness”, he added.

    “So we remain open. So one of our challenges, after we keep people safe and make sure they’re well protected, is actually scramble to meet demand, higher demand for products in China, because the society, you know, slowly is realizing that prevention and long term prevention is probably the best route to such Black Swan events which have come up,” Pant said.

    Amway has its largest team is based in China with almost 5,000 employees there, including manufacturing.

    He said, “everyone is safe. They’ve gone through personal hardship, everyone is safe. We’ve supported charities in Wuhan, the Red Cross. We’ve supported them with one a half million dollars and we continue to support local communities in different cities”.

    He, however, said it is a “tough time” for employees and distributors in China and Korea.

    “They are continuing their entrepreneurship. They continue to do the business but they’re doing it virtually. All business meetings are happening virtually, trading is happening virtually and selling is happening virtually,” Pant said.

    Source: economictimes

  • Amway India Appoints Ajay Khanna as Chief Marketing Officer

    Amway India Appoints Ajay Khanna as Chief Marketing Officer

    Khanna has taken over the reins from Sundip Shah and will will report to Anshu Budhraja. Ajay Khanna joined the organisation in 1998 and donned many hats in various capacities

    Direct selling FMCG company Amway India has appointed Ajay Khanna as the chief marketing officer. With over 24 years of experience in the FMCG and Telecom industry, Khanna has taken over the reins from Sundip Shah, former CMO, who will embark upon an entrepreneurial journey after spending nearly three decades in the corporate world. Based in Amway India’s headquarters in Gurugram, Ajay Khanna will report to Anshu Budhraja, CEO, Amway India.

    With deep understanding of India’s dynamic marketing environment as well as the direct selling industry, Khanna has contributed to the remarkable success of Amway’s nutrition and consumer durables categories, Anshu Budhraja, CEO, Amway India, said.

    According to Ajay Khanna, chief marketing officer, Amway India, India is a top priority market for Amway globally. “The evolving market dynamics, along with our differentiated sales channel, makes it an opportune time to introduce innovations for business growth. I look forward to further building the growth momentum created by my predecessor Sundip Shah and taking the business to greater heights,” he added.

    An Amway veteran, Ajay Khanna joined the organisation in 1998 and donned many hats in various capacities. His trajectory with the company includes leading growth of the home-care/personal care, agriculture and insurance categories before taking on the category head role for the company’s biggest business category – nutrition and wellness in 2014. Armed with a deep understanding of India’s direct selling industry as well as the dynamic consumer landscape, Khanna has been instrumental in driving growth for Amway’s nutrition brand– Nutrilite, and consumer durables in addition to driving effective collaborations with the company’s direct sellers and cross-functional teams. Under his leadership, Amway team has engineered many successes such as the Nutrilite campaign with a brand ambassador, the best in class Amway Queen (cookware) launch, successful foray into Herbals through the Nutrilite Traditional Herbs range as well as into the consumer durables segment.

    source

  • Network Marketing Companies seek protection under Consumer Protection Act

    Network Marketing Companies seek protection under Consumer Protection Act

    Network Marketing and Direct Selling companies in India are facing a lot of problems while operating in the Country. The current provision of criminal proceedings in the case of discrepancies is hampering the growth of these companies in India. Hence these Direct selling companies have urged the Indian Government to extend protection under the Consumer Protection Act.

    QNet said,“Certain individuals have been filing criminal complaints directly with the state police, without even attempting to contact the concerned company for resolution first,” in response to the guidelines issued in September 2016 by the Ministry of Consumer Affairs.

    QNet urged the customers to approach the concerned company first in case of any complaints about the products. However, currently, this is not happening. The customers are registering complaints with local police without even seeking for resolution with the concerned Direct Selling Company first.

    Network Marketing Companies have submitted affidavit to the Supreme Court

    In response to the draft guidelines of the ministry, QNet has submitted its affidavit to the Ministry of Consumer Affairs. Its Indian franchisee Vihaan Direct Selling (India) Pvt Ltd, submitted the affidavit on behalf of Qnet Chief Executive Officer of QNet Ltd, Trevor Kuna said.

    According to the sources, Amway, Mediocre, Herbalife, Tupperware and Oriflame have filed affidavits to the Ministry of Consumer Affairs. These companies are also into Direct Selling Industry.

    In the submission to the Ministry, a senior executive of the company said “These guidelines are a progressive step in the direction of reforms for the direct selling sector. Given the thriving industry in India and a healthy growth trend over the last few years as reported by several trade bodies and chambers of commerce, the guidelines will help with sustainable development of the industry,”

    Billiards champion Michael Ferreira and Vihaan’s Indian shareholder got a bail from the Supreme Court last week. He was earlier arrested on criminal charges in September 2016.

    Court said Criminal law cannot be set in motion to settle civil disputes

    The Karnataka High Court also stated, “Criminal law cannot be set in motion to settle civil disputes by giving the color of criminality.”But due to the lack of regulation, various courts have enforced acts like the Maharashtra Protection of Interest of Depositors (MPID) Act and the Price Chits and Money Circulation (Banning) Act (PCMC),  and categorized the complaint under criminal offenses.

    A city-based independent legal expert, Vishwanathan Iyer observed, “Lack of a regulatory framework and concrete laws to guide players in the business has held back the growth of this industry in the Indian context so far. Acts like Maharashtra Protection of Investors Deposit (MPID) Act and the largely misused Price Chits and Money Circulation (Banning) Act (PCMC), have been irrationally been used against the Direct Selling Industry.”

    An industry player has urged all the other industry players and industry bodies to come and work together on a common platform with the Ministry of Consumer Affairs to convert these guidelines into legislation.

    The Supreme Court while granting bail to Ferreira said that Direct Selling is not a Ponzi scheme. Direct Selling Industry in India accounts to approximately $1.18 billion in revenues in 2015. It is 22nd in the list of top 25 countries in the world. As per a FICCI – KPMG report, around four million people are earning their livelihood from this industry in India. This figure is only expected to grow by 2025 to approximately $9.8 billion.

  • Amway takes concrete steps to triple its turnover in next decade

    Amway takes concrete steps to triple its turnover in next decade

    Key Highlights:

    • Amway to add 8 more products to its existing product lines

    • Decides  to  explore newer avenues like the experience stores and e-commerce to increase turnover

    • Plan to launch an app with no  tie-up with the existing e-tailers like Flipkart or Amazon

    DELHI : One of the leading and oldest  FMCG direct selling company ,Amway plans to add new product lines especially targeted for Indian customers in 2016 . This will likely result in a double-digit growth in FY17 in cookware, health, nutrition and skin care segments showing India’s importance for the parent as per the reports from Edelweiss.

    The report also said that Amway plans to triple its turnover by 2025.

    Currently in terms of growth rate India is considered amongst the top four markets. This new strategy is expected to figure India amongst the top three in the coming five years. The market growth in Japan for Amway has been at 2% and Korea at 5%. Other global markets like Brazil, Malaysia, Mexico and some pockets in the US have shown good double-digit growth whereas market in Thailand has been flat.

    Bhuvan Kapur, Amway vice president (north), said that the company would add 8 more products this fiscal year.Currently, Amway has over 140 products in five major categories –personal care, nutrition & wellness, cosmetics, home care, and great value products. 70% of their revenue is credited to the first two categories of product.

    As per the report Nutrilite, which constitutes 50% of the company’s turnover in India, has recently taken Farhan Akhtar as their brand ambassador.  The report also stated that the company has also set aside INR 1 billion for setting up 10 to 12 experience stores. These stores are said to be in partnership with Microsoft and will be utilized to showcase its range of products to distributors, business partners and customers.

    Beside this Amway also has e-commerce presence through its existing website and is said to contribute about 30-35% of the total Indian sales. The company also aims to take this number to 55% in next ten years. In the other global markets like the US and South Korea, the company’s online sale constitutes about 70 -80% of sales and the company is setting these countries as their benchmark.

    Further the company also has plans to launch an app in coming months and has no plans to tie-up with the existing e-tailers like Flipkart or Amazon and plans to remain a B2B player said the report.

    The company is committed to manufacturing all its products locally following the Government’s “Make in India” campaign in India and has also set up its manufacturing facility in Tamil Nadu.

    The report also confirmed that it currently has five million independent agents and it plans to increase this number to 18 million in the coming next ten years.

    About Amway:

    Amway, earlier known as The American Way, is an American company founded in 1959 by Jay Van Andel and Richard DeVos. It uses a multi-level marketing model to sell its products. Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers,  insurance, and cosmetics. Amway has its global presence in more than hundred countries around the world.In 2012 Amway ranked No.26 amongst the largest private companies in the US by Forbes. 

  • Amway starts pick-up centre at vadodara, Gujarat

    Amway starts pick-up centre at vadodara, Gujarat

    Amway starts pick-up centre at vadodara, Gujarat

    Gujarat is one of the top five markets for Amway company in India.

    Country’s leading direct selling FMCG company – Amway India – on Wednesday upgraded its existing office at Anand to an express pick-up centre.

    The new set-up is a first of its kind in the country for the company. The upgraded office is similar to a ‘mini shopping centre’, a release issued by the company said.

    It will give an opportunity to the Amway distributors to touch and feel the products offered by Amway and purchase them over the counter.

    Gujarat is one of the top five markets for the company in the country. There is high level of interest and appreciation of Amway products which has encouraged us to open country’s first Amway Express Pick-up Centre here at Anand,” said Sandeep Prakash, regional head (west) of Amway India.

    “The centre will play a key role in expanding business interest of Amway in the city of Anand and nearby clusters. This new format will provide touch and feel of all the Amway products to our distributors and their customers which was hitherto not present in the earlier set-up,” he said.

  • Amway’s priority is to engage with the government constructively: Anshu Budhraja

    Amway’s priority is to engage with the government constructively: Anshu Budhraja

    #Tupperware #Oriflame #Microsoft #FSSAI #AnshuBudhraja #Amway

    Even after being engulfed in the controversial arrest of its CEO, Amway refuses to give up its promising Indian Market. It has decided to come back even stronger by engaging in constructive participation along with the Indian government. The GDP of India’s direct selling market is around 0.08 per cent, which means that there is a huge potential of growth and once a clear guidelines are made, the Direct Selling Industry has the potential to grow from a current Rs. 7200 Crore to a whooping Rs.64500 crore by 2025. The Indian economy has also seen the raise in the demand of products patterning to wellness, cosmetics and personal care in the last couple of years. Keeping this in view Amway has decided to focus on manufacturing nutrition and cosmetic products in its Chennai based plant. This not only will cut down their import cost but will also reduce the cost of the products to their end customers which could be a good strategy in capturing the untapped Indian market – Networking Eye.

     

    Direct seller Amway India is looking to put behind it controversies stemming from the arrest of its top leadership over allegations related to various irregularities and regain growth momentum while charting out a new phase of engagement with the government.

    Anshu Budhraja, the Rs 1,900-crore direct selling firm’s first India head in 16 years, said his immediate priority is to engage with the government constructively and take Amway forward from what he said is a “point of inflexion for the next growth phase.”

    Amway has consistently denied any wrongdoing on its part. “An Indian leader understands the sensitivities of Indian culture,” Budhraja said in an interview. “He has the benefit of growing up and being part of system. It’s very simple… the way an Indian will interact with key stakeholders will be different from what a person from outside India will be able to do.”

    Budhraja, who has been with the company for about 15 years in roles such as sales and finance, succeeded expat Bill Pinckney, who has relocated to a global role within the $10.8 billion Amway Corp.

    “China is a $30-billion direct selling industry, while in India direct selling is just 0.4 per cent of retail sales.That’s one big opportunity to double the numbers… it has a leverage of 10 times,” Budhraja said.

    Amway’s first company-owned plant in India, in which it has invested Rs 600 crore, will start commercial production in November.The India unit is looking to service Southeast Asian markets and turning itself into a regional product, innovation and research hub.

    “Commodity prices are the lowest in some time now like crude and some other sensitive raw material prices. This is the time to really leverage these. We are reducing dependency on imports,” Budhraja said. Amway’s import content is down to 1-2 per cent from 2025 per cent two years back, he said. The new plant will also make Artistry super premium cosmetics, which are currently being imported. Amway has dropped prices of its largest selling protein supplement Nutrilite by 10 per cent and is signing a brand ambassador both firsts. A new category of child nutrition products, global energy drink XS and home-tech cookware are in the works, he said.

    The company is also setting up 10 digital stores in consultation with Microsoft, in line with the growing switch to online. Amway India’s top line contribution to its parent is just 3 per cent, but it’s a top 10 market for the company in terms of growth and is targeting to be in the top three over the next decade. “We are targeting tripling turnover over the next 10 years and investing ahead of the curve,” he said.

    The Indian direct selling industry, which includes peers such as Oriflame and Tupperware, is about Rs 7,200 crore. “As the industry and players mature, and as the government’s awareness of the potential and economic and social impact of this industry matures, then you definitely have a playing field which I believe we are getting to,” he said.
    On food regulator Food Safety & Standards Authority of India (FSSAI) directing Amway to recall some products two months ago for allegedly selling them without approvals, Budhraja said, “There’s no conflict of interest with the FSSAI. It’s an education process which both of us are helping each other with. For a few products, we are looking at required changes.”

    Amway has a portfolio of about 50 products in nutrition, three or four of which have been affected. These are not top growth drivers, it said.

    The company has been an active participant in discussions with the government on the model that involves selling directly to consumers through distributors.

    “The ministry of consumer affairs has now taken complete ownership of issuing guidelines on direct selling,” Budhraja said.”Amway is making sure the ecosystem has the right facts and has a face who it can go to. That does make a difference. I have personally made it to all meetings we have had with the ministry of consumer affairs. I feel their level of understanding with the Indian piece is much better than what it was earlier.”

    source economic times

  • #Amway betting big on India, eyes Rs 6000 crore revenue

    #Amway #DirectSelling

    Amway the largest American Direct Selling company, which has a significant presence in India, has decided to make its presence felt even more strongly. It is taking strategic decisions for the growth of the company by enabling its online marketing and sales. The company has already set up a manufacturing hub for nutrition and cosmetic products in Chennai, which is good news for the Indian job market. Besides giving opportunity to people who want to start their own business via the direct selling model, it will also generate job opportunities for that section of population who believe in the security of the fixed inflow of monthly income – Networking Eye

    Multi-level marketing company, Amway is looking at trebling its sales in the country to up to Rs 6,000 crore over the next ten years, a senior executive said today. Even as direct selling has seen a significant downturn globally, Amway has bet big on India and has invested in a Rs 600-crore manufacturing plant despite several regulatory hurdles plaguing the sector.

    “We are looking at trebling our sales to Rs 6,000 crore from the current Rs 2,000 crore in ten years,” Amway India, General Manager,  Anshu Budhraja told PTI.

    It currently has 150 physical stores, 65 warehouses, and delivers to 9,000 pin-codes, Budhraja said. In the domestic market, direct selling is currently regulated by the Prize Chits and Money Circulation Schemes Act where lately several schemes have come under the government scanner with its executives getting arrested for frauds.

    The company is looking to make India the manufacturing hub for neighbouring countries in South Asia and is looking to produce nutrition and cosmetic products here, he said. He also expects the direct selling market in the country to explode, growing to Rs 67,000 crore in the next ten years from the present Rs 7,200 crore.

    “It is a great self-employment opportunity and in the next ten years, the number of direct sellers is expected to grow to 18 million from the current five million,” Budhraja said.

    Amway is looking at digital engagement as a key enabler of business. “Presently, 65 per cent of business comes through direct selling and 35 per cent comes through e-commerce,” he said, adding that like most retail businesses, direct selling should also leverage the facility offered through online shopping.

    source franchise india