Once under regulatory glare in India, direct selling major Amway aims to turn the wheels around and make the country as one of its top three markets in the next five years.
Amway India, the India arm of the $11.8-billion company, aims to treble its current Rs 2,000 crore turnover in the next 10 years. For this, the company plans to enter new categories, strengthen its distribution program and launch digital stores.
“India always has been a key market for Amway. We are currently amongst the top 10 markets for Amway globally but my personal target is to have India feature in the top three markets. I am confident that we can do this over the next five years,” said Anshu Budhraja, CEO, Amway India.
Budhraja took charge of the company in 2015 after former CEO William S Pinckney was arrested on allegations of unethical ways of money circulation.
In order to increase its product portfolio, the company plans to enter new segments.
“I am very open to enter newer categories if we are convinced that the product will deliver value to the end consumer and is compatible for the direct selling model. We are going to enter into newer product segments like consumer durables and plan to launch a cookware range in India in 2017,” he said.
Besides that, the company will have new products in personal care, wellness and nutrition segment.
“Nutrition & wellness and beauty are the two focus categories; next year alone, we are looking at launching close to 10 new products,” he said.
Amway derives almost 70% of its revenue from the personal care, wellness and nutrition segment.
Famed for a robust direct distribution model of around 1.5 million direct distributors, most of whom are actually consumers who have turned distributors, Amway is also looking to move to the B2C model by opening stores.
The company aims to open a chain of digital stores and has started working on the project with Microsoft. The first store would start operations in Bangalore next year.
“Amway is reshaping its strategy in tune with the times. A lot of focus in now being given on the usage of digital media to reach out to the distributors as well as consumers,” Budhraja said.
“Digital currently contributes almost 35% percent of Amway India’s revenues. We expect that this percentage will go up significantly in the future,” he said.
The company's first plant in Madurai which is going to be operational in November is betting big in the Make in India story.
“We are keen to make the India manufacturing unit a regional export base in the near future,” Budhraja said.