Amway year-end sales drop 7 percent
Amway has released its year-end sales for 2016.
The Ada-based global direct selling corporation reported sales of $8.8 billion for the year ending Dec. 31, 2016.
Amway said the sales figure represents a 7-percent decline when compared to 2015.
The company said it increased sales in seven of its top 10 markets, and the decline was due to softening market conditions in China.
“Across the world, Amway did well in 2016,” said Steve Van Andel, chairman, Amway.
The top 10 geographic markets for Amway in 2016 were China, the U.S., South Korea, Japan, Thailand, Taiwan, India, Malaysia, Russia and Hong Kong.
“We believe that in a world where people have more choices than ever before — specifically in how they make money, where they find products and who provides them with tips and insights — that we’re well positioned to help individuals meet their varying needs through the choice of an Amway product or Amway business opportunity,” said Doug DeVos, Amway president and chairman of the World Federation of Direct Selling Associations.
Amway broke down its sales by product category in 2016: nutrition, 49 percent (up 3 percent from 2015); beauty and personal care, 25 percent (same as 2015); durable products, 15 percent (down 1 percent from 2015); home care, 7 percent (same as 2015); other, 4 percent (down 2 percent from 2015).
Major product launches for Amway in 2016 included the Truvivity by Nutrilite skin hydration line, Artistry Flora Chic, the first premium fragrance from Artistry, and the continued rollout of Artistry Supreme LX, luxury, anti-aging face and eye creams.
Amway said a number of its products are doing well, and it expects that success to continue.
The XS brand of energy drinks, snacks and sports nutrition products is expanding rapidly following Amway’s acquisition of the brand in 2015, achieving 40-percent sales growth this past year.
Amway said the brand is now available in nearly 50 nations, and its launch of sports nutrition products in 2016 exceeded sales goals.
Newly launched Truvivity by Nutrilite, a supplement focused on skin hydration, is exceeding sales estimates, and distributors have found success in pairing the product with premium skincare lines, such as Amway’s Artistry Hydra-V, the company said.
Amway acknowledged a number of trends it thinks will help support sales in 2017, including its 2016 "Amway Global Entrepreneurship Report," which found that “77 percent of people expressed positivity about entrepreneurship and 43 percent could imagine starting a business of their own.”
The company said people are “positive about entrepreneurship” and can envision themselves as business owners.
Millennials are also expressing a particular interest in entrepreneurship. The same study found that 52 percent of millennials “could envision themselves starting a business.”