Amway India faces stagnated growth
Source:
Business Standard
The growth of Amway India has staganated, almost unwavering in the last three years.
The managing director and CEO of Amway, William Pinckney, while talking to Business Standard on Monday, said, "The turnover in India has remained more or less same during the last two years. This was a consolidation period for us as the volume was almost the same."
For the first time, since its inception, Amway's annual turnover nose dived during the last financial year. Amway, which has September to August financial year, ended year 2004-05 in August 2005 with Rs 633 crore turnover as against Rs 636 crore in 2003-04.
For 2004, the turnover stood at about Rs 636 crore while, it was Rs 600 crore during the year ended in September 2003. The company witnessed major growth from 1998 to 2003. The turnover in 1999 was Rs 90 crore which rose to Rs 500 crore in 2002, he said. When asked why Amway does not advertise its campaign, Pinckney said, "In advertisement, whoever does it better wins the market and we do not advertise because with direct marketing we are able to garner loyal customers." He admitted it was difficult and more time consuming to gain better market share with this system. However, Pinckney said he is hopeful of achieving 8-10 per cent growth this year.
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Amway India faces stagnated growth
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