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Amway reports dip in year-end sales
Amway has reported its year-end sales for 2017.
Ada-based Amway, a global direct selling company, announced today sales of $8.6 billion for the year ending Dec. 31, 2017.
This compares to sales of $8.8 billion in 2016, a decrease of roughly 2.27 percent.
Amway attributed the decline to softer sales in China, a factor the company also cited in 2016, when sales dropped about 7 percent from 2015.
“We have weathered a challenging period for our business in China that, combined with less-than-favorable exchange rates, have impacted our sales for a few years,” said Doug DeVos, president, Amway.
DeVos said the decline in China is leveling off, and the company forecasts sales growth in 2018.
“Several factors further support the company’s 2018 forecast, including steady growth in bellwether markets like South Korea and Thailand, expanding investments in digital platforms and distributor tools and new product launches that are exceeding expectations,” DeVos said.
Amway’s top 10 markets, based on 2017 sales, were China, the U.S., South Korea, Japan, Thailand, Taiwan, India, Russia, Malaysia and Hong Kong.
The company achieved 2017 sales gains in South Korea, Thailand, Russia and India.
The company said its total sales in the second half of 2017 grew by 3 percent, compared to the same period the previous year, led by China and the U.S.
The company said its “significant investment in digital platforms” is expected to be a key sales driver in 2018.
In China, about 70 percent of Amway product purchases were made through digital and social platforms and two-thirds of those were via mobile devices.
In the Philippines, South Korea and the U.S., the company launched various online platforms, apps and digital tools for sellers and buyers.
Amway broke down its 2017 sales into product categories.
In 2017, nutrition and weight management products accounted for 50 percent of Amway’s sales, up 2 percent from 2016.
Beauty and personal care products made up 26 percent of Amway’s sales in 2017, up by 1 percent over 2016.
Home and durable products made up 21 percent of the company’s 2017 sales, down by 1 percent from 2016.
The remaining 3 percent of sales were classified as “other,” down by 1 percent from 2016.
Amway is developing products with the Internet of Things, or IoT, in mind.
Its Atmosphere Sky home air treatment system is an example. It is a connected air filtration system that can be controlled by mobile app and has the potential for third-party integrations, such as Amazon Web Services and web apps to support product development.
DeVos said he expects the IoT part of Amway’s business to continue growing in 2018.
Amway has several top-selling brands: Nutrilite vitamin, mineral and dietary supplements; Artistry skincare and color cosmetics; eSpring water treatment systems; and XS energy drinks — all sold exclusively by Amway sellers.
The company’s annual sales figure includes revenue from direct selling operations and other business holdings.