Amway says E-commerce to contribute half of sales in future

Direct selling company Amway, which is aiming Rs 6,000 crore turnover by 2020, today said it expects its e-commerce platform to contribute half of its sales in the future.
The US-based company, however, expects a flat growth in sales this year in India at Rs 2,100 crore. E-tailing accounts for 35 per cent of this.
"We see e-commerce as a great opportunity for the sector. 35 per cent of my revenue is through e-commerce. We have embraced it... We see e-commerce as our future," Amway Managing Director & CEO William S Pinckney told PTI.
The company is expecting the revenue traction from its B2B (Business-to-Business) e-commerce platform (between Amway and its distributors) to go up.

"I do not know where we would settle. I think it could be 50:50 or 60:40. We would not be worried if e-commerce is 70 per cent," he said.
He added that the growing share of its e-tailing business would not affect its distributor network.

"It would increase but we have our physical presence at 142 offices that will not decrease. As our business grows, we see e-commerce taking a greater share of that... There would be always be a consumer who will say that I do not want to go online," he added.
It would be a hi-tech business with hi-touch, he said.

Pinckney said:" This year the company has a flat growth rate, we would have the same turnover of Rs 2,100 crore".
He, however, added: "We have a goal of Rs 6,000 crore (turnover) by 2020."
The company would complete its Rs 600 crore Tamil Nadu project by March next year.