The direct selling industry is expected to grow from INR 7,200 crore to INR 65,000 crore by 2025: CMO, Amway India
Sundip Shah of Amway India shares the brand’s marketing focus as it completes 20 years in India and the effectiveness of their digital campaigns
Direct-selling firm Amway India recently completed 20 years in India. The Rs 1,800 crore brand is looking to clock around Rs 6,000 crore in brand growth from its India operations by 2025. Investing heavily in the digital and influencer-marketing space, Amway India seems to be eyeing big on expansion. Sundip Shah, Chief Marketing Officer, Amway India shared the brand’s marketing focus, growth drivers and how the brand measures the effectiveness of their digital campaigns.
Amway recently completed 20 years in the Indian market. As a direct selling company, what are some of the big challenges you have faced over the years here in India?
In any market, one big challenge which we have faced across the world is that the general public and the government are not familiar with direct-selling.Currently the lack of clear direct selling laws prevent the law enforcement authorities to distinguish between direct selling and fraudulent schemes that masquerade as direct selling companies. Effective & efficient legislation will allow Indian direct sellers to focus on growing their business through product sales and simultaneously protect consumers from fraudulent enterprises. While there has been some confusion regarding the direct selling business model in India, both the consumers and the government are beginning to understand the business model better. Industry bodies like IDSA have been working closing with the government to bring Direct Selling guidelines to address this challenge and we are happy that the Ministry of Consumers Affairs has issued guidelines on Direct Selling Industry and now slowly each state is adopting it.
And then, of course, at the heart of Amway’s model is people, so another challenge is how do we enable people to represent our brands and products, especially the youth segment, who are today’s opinion makers and influencers in our society and are open to experimentation. Amway is currently working on making its interface simpler, intuitive, more exciting and relevant for the exponentially growing youth population.
What do you believe could be growth drivers for Amway in India, going forward?
There are two aspects to it. One is entrepreneurship opportunities in India which presents itself as a big opportunity for direct-selling. We’re expecting the direct selling Industry to go from Rs 7,200 crores to Rs 65,000 crores by 2025. Besides this, the opportunities in the FMCG categories are growing, whether you take wellness or personal care, all these categories are growing at double-digit rates. Increasing our presence and enhancing our share in these segments is clearly an opportunity for us.
What is the brand’s approach when it comes to advertising?
Our intent and effort is to help our distributor sell to consumers. Hence, we give them the tools and means to represent our brands more articulately by way of online and offline trainings, product videos, Apps etc. Through Advertisements, we try to generate interest which helps our distributors to service their consumers.
‘Attitude’ an entry-level premium skincare and cosmetics brand targeted at India youth. Our recent campaign #Don’tLimitMyAttitud celebrates stories of inspiring women who have broken societal shackles to live their lives of their own accord, the film exemplifies the essence of Amway’s vision of empowerment. Through these stories, the film aims to draw consumers’ attention to the societal perception against women who are dictated by norms set for them by others.
Amway has completed 20 years in India and the latest campaign #AmWayofLife brings to life a strong bond built during this journey with millions of consumers in India. The powerful storyline shows the impact and strong integration of brand Amway with their ABOs and consumers through an emotional narrative.
How much of your ad spend goes into digital marketing?
Amway India’s approach has been more focused towards making communication more personalized and contextual while utilizing the right mediums to deliver our messages for consumer engagement. From a media mix perspective; Amway has moved on to a 100% digital approach on our brands this year; while on corporate Amway is exploring relevant platforms as per the context of the communications.
You can argue that is around 90% .
What does your digital marketing strategy comprise? Social media? Video? Display ads? Content Marketing? Influencer Marketing? Which one do you use more and why?
We use social media and display ads more cause we’re still in the phase where we need to build awareness and engagement. At some point of time, we will shift to conversations.
You use digital to target which demographic? And why?
Each brand has its own demographic, Nutrilite is targeted towards both men & women and Attitude, our indigenous brand is targeted towards young women
Leading advertisers are taking digital media buying in-house. What are your thoughts on this? Is this sustainable? If yes, will you do this at your company?
Currently, we are using media-agency for our digital campaigns as we believe in the value they bring through its cross-category and cross-client experience. We would like to leverage the huge learning curve which they have acquired.
Unified digital measurement is an issue that the industry is grappling with. How have you been measuring your digital campaigns and their effectiveness?
Apart from the standard measures like reach, views and engagements, now we’re also tracking click-throughs. So, when we run a campaign, we now look at how many people come on to our site and show interest or buy a product. That is what gives it some amount of tangibility.
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