Amway today announced sales of $9.5 billion USD for the year ending Dec. 31, 2015, a decline of 12 percent when compared to 2014 figures.
The direct seller saw constant dollar sales growth in 70 percent of its top 20 markets but, like many international companies, experienced soft sales in China and unfavorable currency exchange rates that negated gains.
“We experienced growth in seven of our top 10 markets and emerging markets in Latin America and elsewhere continue to perform well,” said Steve Van Andel, Amway chairman.
“Several markets achieved record sales levels in 2015 with others producing their best performance in some time. An increasingly competitive environment in China and unfavorable currency exchange rates mask a positive year overall for Amway globally.”
The company experienced notable growth in legacy markets like the United States, South Korea, Japan, Taiwan and Malaysia, along with emerging markets such as Brazil, Mexico and many others.
The top 10 markets for Amway in 2015 were China, South Korea, United States, Japan, Thailand, Russia, Taiwan, Malaysia, India and Ukraine.
The nutrition category of vitamins, dietary supplements and weight management products continued to be the top sales category for Amway, representing 46 percent of sales. Beauty and personal care products accounted for 25 percent of sales.
Durable products, including the eSpring™ water treatment system and Atmosphere™ air treatment system, represented 16 percent of sales with home care products generating 7 percent of sales. Other offerings accounted for 6 percent. Major product launches for Amway in 2015 included Nutrilite Phyto2Go™, Truvivity™ by Nutrilite™, Artistry Supreme LX™ and Artistry Hydra-V™.
Amway continued its investment path in 2015, focusing on manufacturing and R&D, along with digital platforms and training for its Amway Business Owners. The company opened five manufacturing facilities and a major R&D site last year alone – culminating its $335 million manufacturing and R&D expansion. In addition, the company launched new digital tools to help Amway Business Owners manage their own businesses, showcase products, and gain new skills and knowledge. More than three million online learning sessions were held in 2015.
Globally, Amway's independent salesforce has created a strong customer base. Based on recent surveys*, Amway™ products can be found in 71 million households spread across 10 of its top markets – and those households are not part of the Amway salesforce.
“Globally, more and more people are seeking an opportunity to do something on their own – whether it’s to earn a little extra or for a bigger commitment to earn more. We’re well positioned to meet that demand with a low-cost, low-risk business opportunity selling world-class products,” said Doug DeVos, Amway president and chairman of the World Federation of Direct Selling Associations. “The changing definition of entrepreneurship positions our entrepreneurs – Amway Business Owners – well as they meet the needs of the global customer.”
The Amway Global Entrepreneurship Report, released in November 2015, quantified attitudes about business ownership and the entrepreneurial spirit. Approximately 50,000 people in 44 countries were surveyed and 75 percent were positive about entrepreneurship. Those under the age of 35 were even more positive, with 81 percent responding favorably.
Amway is a $9.5 billion direct selling business based in Ada, Michigan, USA. Top-selling brands for Amway are Nutrilite™ vitamin, mineral and dietary supplements, Artistry™ skincare and color cosmetics and eSpring™ water treatment systems – all sold exclusively by Amway Business Owners. Global sales in 2014 made Amway the No. 1 direct selling business in the world, according to the Direct Selling News 2015 Global 100. The company’s annual sales figure includes revenue from direct selling operations and other business holdings. For company news, visit globalnews.amway.com.
*Based on population data available about the specific markets and surveys conducted in China, India, Japan, Korea, Malaysia, Russia, Taiwan, Thailand, the United States and Vietnam between May 2013 – June 2014 by an independent research firm.