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Amway India bullish on expansion; eyes up to 25 pc growth in 2011

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Amway India bullish on expansion; eyes up to 25 pc growth in 2011

Direct selling FMCG company Amway is all geared with well thought out expansion plans to launch more Brand Experience Centres as the company intends to more accessible to its business owners and consumers.

In an email conversation with exchange4media, William S Pinckney, MD & CEO, Amway India, said, “To drive growth, Amway India is focusing on four strategic pillars – Business Excellence, Distributor Experience, Consumer Experience and Products & Brands. The year 2011 will witness a slew of product launches, mostly in our two lead categories – Health and Beauty.”

Further discussing the company’s expansion plans, he said, “Over the next 2-3 years, we will be ramping up our infrastructure – take the number of Amway Touch Points from the current 130 to about 250. Another initiative that we are working on is our Brand Experience Centres. We currently have 13 Brand Experience Centres. These Brand Experience Centres are focussed on our two lead categories. Our plan is to add another 20-25 over the next 2-3 years.”

Amway India considers its fiscal year from January to December, and accordingly, it has seen a growth of 28.2 per cent. In 2010 (till December), the 11-month period has recorded a sales turnover of Rs 1,644 crore, while during the same period last year, the company had witnessed a turnover of Rs 1,282 crore.

So, what is the expected growth for 2011? “For 2011, we expect to growth in the range of 22-25 per cent,” Pinckney replied.

Since Amway India is a direct selling company, the advertising of the brand is niche and selective. On being asked which tool of communication was significant for a company like theirs, Pinckney answered, “The direct selling industry follows the word-of-mouth publicity route. Since products of direct selling companies are sold through ‘people’, the network of business owners ‘proactively’ reaches out to the end consumers. Some companies, like Amway, also do advertising using various mediums like print, television, outdoor, etc. Our objective to advertise is to create brand awareness, which enables our business owners to conduct business with ease.”

Meanwhile, Amway officials informed that the company was still in the final stages of finalising its overall marketing budget for the year 2011. Amway India has invested more than Rs 151 crore in India and has 130 offices and 55 city warehouses across the country, covering over 4,000 cities and towns through its home delivery network.



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