Amway Sales Fell 10% To $10.8 Billion In 2014

Doug Devos,Amway,Founder


Amway Corp. announced sales of $10.8 billion for 2014, a 10 percent decline that company officials blamed on lower revenues in China and fluctuation in foreign currency exchange rates. 

While 2014 revenues are lower than 2013, the company continues to exhibit strong long-term growth, the company said in an announcement released Wednesday, Feb. 4.

Amway has grown by 68 percent in the last decade and achieved sales growth in 13 of the last 15 years, the company said. In China, results have been strong as well – with growth rates over the past five and 10 years of 27 percent and 45 percent, respectively.

Privately held Amway does not release its sales figures by country, but China is generally regarded as its largest market.

Considered the world's largest direct sales company, Amway sells nutrition, cosmetics, home care, and durable products through a global multi-level marketing system that includes more than 3 million independent distributors.

Amway employs more than 20,000 worldwide and 4,000 near its Ada headquarters and at its hotel properties in downtown Grand Rapids.

Sales in 2014 reflect the significant efforts of Amway business owners and employees who continue to do well around the world, despite challenging operating environments found in several nations that are major markets for Amway, said Amway Chairman Steve Van Andel in the news release.

We continue to see great strength globally as select markets hit record sales numbers and others show resilience that point to strong results in 2015, Van Andel said.

Looking ahead to 2015 and beyond, we are optimistic and feel we are well positioned for growth, said Amway President Doug DeVos.We will be opening five new manufacturing facilities, many new Amway Experience Centers to support our ABOs (Amway Business Owners), and improving virtual experiences online.

DeVos said attitudes toward and interest in entrepreneurship remain at all-time highs.

The top 10 markets for Amway in 2014 were China, South Korea, Japan, United States, Thailand, Russia, Taiwan, India, Malaysia and Ukraine, the company said.

Amway products can be found in 71 million households in its top 10 markets, the company said, citing a 2013-2014 survey. The households surveyed are not part of the Amway salesforce, the company said.

Some of Amway's most mature markets, including South Korea and Taiwan, experienced notable growth in 2014, the company said.

Markets such as Brazil, Mexico, Argentina, Costa Rica, Guatemala, Chile, Panama, Italy and Spain saw double-digit percentage growth in local currency sales, while markets influenced by political unrest and economic slowdowns – Russia, Thailand and Ukraine – showed resilience and produced solid results.

Amway sales in 2014 were largely concentrated in the product categories of nutrition, beauty, durables and home care, the company said

Nutrition products continued to lead the way, accounting for 43 percent of direct selling revenue.

Beauty products contributed 25 percent, followed by durable products at 19 percent and home care products at 8 percent. Other offerings accounted for 5 percent.

Get more information, facts and figures about Amway, click here for the Amway overview.

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