A Brief Profile
Amway (short for American Way) is an American company relying upon multi-level marketing model for selling a massive range of products focusing on niches such as beauty, health, home care, etc.
It came into existence in the year 1959 by Richard DeVos and Jay Van Andel, with its headquarters in Ada, a city in Michigan.
The product line of Amway includes home care products, jewellery, electronics, dietary supplements, air purifiers, water purifiers, and insurance.
Some family brands associated with Amway include Nutrilite, Dynamite, Artistry, Attitude among others. Amway’s expanse of business covers affiliated companies across more than a hundred countries across the world.
Amway after being formed launches its very first product, a liquid organic cleaner in 1959, one of the world’s first bio-degradable multipurpose cleaners which becomes a high-seller helping Amway in establishing a secure base.
By the late 1960s Amway joins hand with Artistry and Nutrilite enhancing its international share in the markets.
By Late 1980s, Amway’s Sales mark exceeds $ 1 Billion and it adds 20 more countries to its family. It goes on expanding establishing itself in China as well as South Africa and launches its One by One campaign for children in early 2000s and completes 50 years in 2009.
It goes on expanding till the present day and launches a $375 million manufacturing and R & D expansion globally in 2013.
Amway is one of the world’s largest direct sale companies with 6000 corporate employees worldwide. It services and supplies over 3.3 million IBOs in more than 80 countries and territories in Asia, Africa, East and Western Europe and Americas. Amway manufactures its own branded products and distributes them through ‘direct selling’.
That is how its mode of operation differs from that of traditional distribution channels. The “pyramid-like distribution system” of Amway is one of its major highlights which ensures that the independent distributors of Amway products receive a percentage of merchandise sold along with the recruited distributors receiving a percentage as well.
Amway strongly believes in the principle of ‘giving back’ to society, hence it operates an umbrella campaign One –By-One which serves this purpose. One-By One invites Amway Business Owners (ABO), employees, affiliates and clients to untie together for the cause of improving the wellbeing of children.
One-By-One has impacted the lives of more than 10 million children across the world. From national fundraisers to help children with special needs in the United States, to government partnerships for addressing malnutrition and education in China, to volunteers working side families in Guatemala to build homes, One-By-One comprises of a mosaic of activities undertaken in sync with company’s vision of helping people lead better lives.
According to Harvard School of Business, Amway is “one of the most profitable direct selling companies in the world”. Amway was listed on 27th Rank by Forbes in 2012 among the largest private Companies in the United States.
Its revenue for 2014 was recorded to be US$ 11.8 Billion. Amway has 21,000 employees (2014) working under it.