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Amway expands presence with new Satinique range; to close year at Rs 700 crore

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Amway expands presence with new Satinique range; to close year at Rs 700 crore

Amway has extended its personal care range, introducing three specialty hair care products under the Satinique brand. The company will soon focus its efforts on the sachet format, too, in an attempt to increase trials and market share.

Speaking to reporters at the launch, William Pinckney, MD and CEO, Amway India, said, “We have grown to seven times our size in the last seven years. We believe we will close at just over Rs 700 crore this year – that’s a growth of around 9 per cent. One of the reasons for the consistent growth is the introduction of new products.”

He reiterated that the direct selling mode of business in India was gaining popularity, with even companies like HLL looking at the same to boost sales. He stated that the direct selling market, estimated to be in the region of Rs 2,900 crore, was growing annually by 20 per cent.

On the company’s growth plans, Pinckney added, “Since our entry in 1998, we have been very specific about our strategy – we decided to go with an urban focus. The idea still remains that we explore the urban markets to their potential before moving into rural areas. I think it would be at least three to five years before we enter rural markets. In the same period, we hope to grow to Rs 1,000 crore.”

The new range was launched by international hairstylist John Gillespie, the brand ambassador for the Satinique range. While the initial launch will see the advanced range in 250 ml pack sizes, the company is working on introducing the same in sachets soon.

Naveen Anand, VP, Marketing, Amway India, said, “Today, shampoo sales are showing a CAGR of 9.5 per cent. While the shampoo market is estimated to be in the region of Rs 1,349 crore, the urban markets account for around 80 per cent.”

The shampoo market in India is expected to reach a size of Rs 2,238 crore by 2010.

On the packaging, he added, “According to the last available data, around 50 per cent of the shampoo sold in the country is in the form of sachets. We realise that the opportunity is huge, and we are working on it. It also gives the opportunity for customers to sample the sachets and then shift to the larger pack sizes. After a few months, sachets will also be made available.”

Meanwhile, Amway India will continue to advertise only for the corporate brand, and not for its individual brands. Another big launch from the company is in the offing in August, in the beauty segment.


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