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Amway year-end sales drop 12 percent
Amway reported its annual sales for 2015 today, and the direct selling business saw a 12-percent decline from the previous year.
Sales at Ada-based Amway reached $9.5 billion in 2015.
The company’s annual sales number includes revenue from direct selling operations and other business holdings.
The company blamed soft sales in China and unfavorable currency exchange rates for the drop, saying those factors “negated gains” it made in 70 percent of its top-20 markets.
Steve Van Andel, Amway chairman, said the company saw growth in seven of its top-10 markets. He said emerging markets in Latin America and elsewhere “continue to perform well.”
“Several markets achieved record sales levels in 2015, with others producing their best performance in some time,” Van Andel said. “An increasingly competitive environment in China and unfavorable currency exchange rates mask a positive year overall for Amway globally.”
The company said it experienced notable growth in legacy markets like the U.S., 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, the U.S., 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 — culminating its $335-million manufacturing and R&D expansion.
In addition, the company launched new digital tools to help Amway business owners manage their businesses, showcase products and gain new skills and knowledge.