Tuesday, February 22, 2011

Amway Sales Up For 2010?


ADA, Mich., Feb. 17, 2011 /PRNewswire/ -- Amway's parent company, Alticor Inc., reported sales exceeding $9.2 billion for the year ended December 31, 2010, a 9.5 percent increase over sales of $8.4 billion in 2009. The 2010 performance results mark Alticor's 10th sales increase in the last 11 years.

Amway said growth was fueled by strong 2010 results in China, the company's largest market, as well as healthy gains in India, Korea, North America and Latin America.

The company, which is privately held, does not generally release individual market sales or disclose profitability.

"Our message of free enterprise and individual opportunity continues to resonate across markets and across cultures," DeVos said. "We're proud to help entrepreneurs take the first step towards business ownership, and to support them with brands that are becoming better known every day."

The company announced that category sales of NUTRILITE approached $4 billion, attributed to overall growth in the category as well as increased visibility for NUTRILITE in 2010. Major campaigns included "Color Yourself Healthy," a global awareness program that promoted the benefits of plant ingredients for optimal health. Global sponsorships focused on major sports teams and well-known athletes continue to build brand awareness for NUTRILITE.

ARTISTRY skin care and cosmetics led beauty category sales for Amway. The company cited a successful launch of ARTISTRY Intensives Renewing Peel, the first product in a new Intensives line of skin care products designed to provide professional results at home. Masstige brand beautycycle™ successfully launched in Europe and Australia, targeted to consumers who are looking for high-quality skin care and cosmetics products containing natural ingredients.

Brand building continues to be a significant focus for Amway around the world. "Our distributors are realizing the benefits of our global investment in building our brands," said DeVos. "It is easier for them to sell products that consumers already know to ask for by name." To increase consumer access to its brands, Amway expanded its physical presences across the globe to complement its direct selling business model.

The company also unveiled a new Amway brand identity in 2010, highlighted by the opening of the Amway Center, home to the National Basketball Association's (NBA) Orlando Magic, which became the first high-profile venue in North America to showcase Amway's new brand identity.

Operationally, the company took steps to evolve into a true global enterprise – leveraging technology to improve supply chain efficiencies, help distributors run their businesses more efficiently and gain consumer insight vital to developing strong customer relationships. Said Van Andel: "We are a global business, with 90 percent of sales outside the U.S., and we are taking necessary steps to support customers worldwide."


Anonymous said...

No doubt the emerging markets in Asia are the reason for Amway's sales increase over the past 3 or 4 years. China is a major contributor to this increase with the Chinese government removing the restriction on direct-selling companies that has been in place since the early 1990's. There has been no new Diamonds in North America for years now and I have no doubt sales are taking a serious slide. Once other retail competition comes into play in Asia's emerging markets, sales there will decline.

***Former WWDB Lemming***

John said...

The stagnating US market is the reason that the new IBO can't even hope to keep up with the already abysmal success rate statistics. Sure, 1 in 10,000 or so current IBO's is a diamond, but that doesn't mean that the new IBO has the same probability of making diamond. In fact, it's many times worse. As Joecool already stated today, the odds of making diamond for the new North American IBO are probably on par with winning the lottery.

Cost of a lotto ticket: $1
Cost of 5 years as an Amway IBO: $10000-$35000

I think it's an obvious decision

Joecool said...

I'd like to see the sale sfigures for each market seperately. Not sure how you can see such significant gains in all of those listed markets. Also, it seems pretty hard to fathom that Amway had significant sales gains in North America. Not saying it's impossible, but it sure seems unlikely.

Anonymous said...

This is just another classic example where Amway could easily end speculation and release actual sales figures for each market, but instead they leave it up to guessing and speculation, just like many other figures Amway releases. I find it suspicious that Amway would have significant growth on north america when there aren't new diamonds around and large groups have quit or moved to other MLM opportunities.

Anonymous said...

Amway's recent history in North America went something like this...

1) 1980s were the high
2) 1990s it was all slipping away
3) 2000s tried to reestablish the 80s excitement by changing the name to Quixtar
4) 2010s poor growth in north america had already proven too easy to isolate because of the unique name so it's fully converted back to Amway were international growth masks everything.