Strategic innovation, consumer focus fuel growth despite slow global economy; Alticor marks sales increase for ninth time in 10 years
ADA, Mich., (MARCH 9, 2010) /PRNewswire/ — Amway’s parent company, Alticor Inc., announced record sales of more than US$8.4 billion for the year ended Dec. 31, 2009, which was a 2.3 percent increase over 2008. Sales were negatively impacted by foreign currency fluctuations, which in local currency grew 5.9 percent.
“Our focus on using innovation to transform the Amway business is showing results,” said chairman Steve Van Andel. “The global economy challenged every business in 2009. Our continuing investment in products, technology, and connecting with consumers helped us weather the storm.”
Said president Doug DeVos: “Our distributors around the world deserve a lot of credit for persistence in a difficult economic climate. We put a lot of effort into improving our product offerings and building consumer awareness; the distributors put in the work to drive sales to our customers.”
The company also made gains in another key measure. Said Van Andel: “In 2009, we increased our market share in the direct selling industry, and continued to drive improvements and adjustments to our business that will help us, and our distributors, succeed over the long term.”
Strong regional sales in China, India, Southeast Asia, and Korea continued in 2009, while the 2008 relaunch of the Latin American market yielded a second year of more than 50% percent increase in volume in the region. Visible work has been done to strengthen and reposition Amway in established markets such as Australia, New Zealand, and South Africa, making the region one to watch for 2010.
In the North America market, continued transformation was marked by investments in visibility, training and consumer access. In November, the company launched an ordering “app” for Apple® iPhone, product information and sales support via podcast, and training apps on iTunes®. North America is also the first to implement a new web commerce platform, which will begin a global rollout later in 2010.
“More than ever before, Amway is a truly global company,” DeVos said. “As markets outside the United States continue to develop, we are learning constantly how to better support consumers in many different cultures. Then we take the best lessons we learn in each market and figure out how to apply them around the world.”
Amway does not generally release individual market sales or disclose profitability.
Amway, a pioneer and leader of the direct selling industry, does business through its distributor network in more than 80 countries and territories. Amway’s flagship product brands include NUTRILITE™ nutrition and wellness products. Nutrilite is the leading global brand of nutritional supplements and is also the worldwide leader in children’s nutritional supplements. ARTISTRY™, one of the top five global prestige brands of skin care and cosmetics, is a recognized leader in specialized development of Asian skin care regimens and emphasizes premium, anti-aging skin care.
Talent and innovation
The company is in its third year of a strategic plan intended to drive innovation, talent and growth. “Amway has hired 23 executive leaders in the past three years,” said Van Andel, “adding to a world-class senior management team that has grown with the Amway business. The new leaders bring outside perspectives and insights to us, and the veterans are giving them a strong, supportive base to build from.”
Amway’s parent company earlier this year announced a strategic partnership with Metagenics, developer of therapeutic nutritional supplements that are primarily sold through health care providers. Gurwitch Products, marketer of Laura Mercier cosmetics and ReVive skin care products, continued a strong, stable pattern of growth and expansion. Sales of third-party manufacturing and logistics services through subsidiary Access Business Group were lower in 2009, in part due to the challenges faced by those customers, and in part due to an increased need for manufacturing and logistics capacity based on growth of the Amway business.
“In 2010, we will continue to change the way people see Amway,” said DeVos. “We are finding new ways to articulate our values and our opportunity so that we can connect to entrepreneurs and product consumers around the globe.”
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