Amway, the world’s leading direct selling company for a wide portfolio of products from health and wellness to agriculture, has registered double-digit growth for its nutrition products, health and wellness, and personal care products during this pandemic period.
Leni Olmedo, country manager of Amway Philippines, said in a virtual webinar that Amway invested during the pandemic to enhance its digital business and strengthen their online operations and their Amway Business Owners (ABOs). The investment enabled them to shift to 70 percent online during the pandemic from only an average of 8 percent pre-COVID.
In terms of product growth, Olmeda said that its nutrition category performed better under the Nutrilite banner, which accounts for 60 percent of their business.
Over the past 6 months, demand for immunity booster products, particularly Nutrilite, and vitamin C, grew double-digit along with demand for personal care, home care and health and wellness product categories.
Olmedo said that programs like enhancement of e-commerce platform, and Amway Exclusive Shopper to be launched by October 17 this year are expected to help contribute growth.
With Amway Exclusive Shopper, customers can directly purchase Amway products online. However, unlike many e-commerce platforms, each order will be fulfilled through an assigned ABO so customers can still benefit from personalized service whether or not they opt to directly engage with the ABO.
Olmedo also stressed that all incomes come from products, nothing from ABO registration.
Amway is looking at 10 percent increase in ABOs this year boosted by the Amway Exclusive Shopper. Amway had 80,000 ABOs in 2019.
To further help ABOs, Olmedo said they have released over 90 learning modules and management systems and almost daily trainings on how to shift businesses to online from offline.
Olmedo, however, said that the pandemic has impacted because of issues of supply gap, but said, ”We are on our way for recovery especially for Nutrilite.”
For Amway though, she expressed confidence of being able to hit growth targets for the year.
The strength of Amway’s portfolio attracted a new wave of Filipino entrepreneurs, giving Amway an increase of 130 percent in new ABO sign-ups from April to June 2020. The company sees this uptake as a way for newly unemployed Filipinos to augment their income during a difficult time.
During this pandemic, Olmedo noted the direct selling business has once again proven to be more resilient as long as the products a direct seller carries are relevant to the current situation.
The entire direct selling industry in the Philippines grew by 10 percent last year to P79.3 billion, solidifying this established business model in the local culture. Compounded annual growth target for this year was 4 percent, but that was pre-COVID.
“Direct selling provides new income opportunities for those newly unemployed Filipinos to build a new career during this difficult time,” she said.
In the face of adversity, Olmedo said, “Amway reinstates its commitment to support healthier lives and create a path for Filipino entrepreneurs to achieve their goals.”
Olmedo also stressed that Amway can deliver both “buhay” and “kabuhayan”, (health versus economy).
She added that the Michigan-based health and wellness company is committed to innovations in nature, science and technology. Amway promises pure safe and effective products.
The science-based company has been present in the Philippines for the past 23 years. It is present in over 140 countries globally.
The health and wellness company offers a wide portfolio of safe and effective high-quality products in health and nutrition, beauty, lifestyle, home and agriculture.