Global direct-selling company, Amway, saw yet another year decreased annual sales and the Chinese market seems to be the one to blame, according to a recent MiBiz article, written by John Wiegand.
The article states that in 2016, Amway made $8.8 billion in annual sales, a 7.4% decrease compared to $9.5 billion in annual sales made in 2015. The company saw its peak in annual sales back in 2013 with $11.8 billion, and has not been able to top that amount since.
Amway’s President, Doug DeVos, stated in the article that there has been an increase in competition from other direct sellers in China, but ultimately it is the company’s business cycle that is responsible for the decrease.
Devos states in the article, “It’s as much regarding our internal cycle. In a direct sales force, you have a lot of enthusiasm and momentum that takes the business forward, and people to a certain extent get tired. Our main leaders who are there, they are absolutely committed, but you have a huge part-time element and for a while they might be interested and then they might pare back or they have other interests or things happen. It’s just really difficult to maintain that level of engagement for an extended period.”
Devos also stated that key markets in China, the United States and India will drive the company’s performance in the future particularly with the help of millennials. A recent Amway study found that millennials opened the majority of independent businesses selling Amway products.
Devos stated in that article, "We appeal because we bring flexibility and we bring lifestyle and relationships. Our global entrepreneurship report continues to demonstrate that the millennials are very open to a business opportunity like ours and are very interested in having a flexible lifestyle where they can draw income to it.”
To read the full article please visit: www.mibiz.com