The Amway corp
Established over 50 years ago, the Amway Corporation today stands as the leader in direct selling and Multilevel Marketing (MLM). The company originally sold household cleaners but as time flew, Amway Corp delved into deeper and wider markets and made products for health and beauty, artistry, and water filtration systems. Since Amway Corp also operates on the MLM structure and is a popular company, controversies could not be avoided such as the ones that accuse Amway Corp as a “pyramiding” company.
In 1959, Jay Van Andel and Richard DeVos founded the Amway Corporation. However, before Amway Corp was established, the two founders already had a deep connection. Andel and DeVos have been friends ever since their early school days and the relationship continued to grow as they became business partners. They were introduced to the Nutrilite Products Corporation in 1949 and after a night-long walk, have decided to become distributors of the company. They sold their first box a day after for $19.99 but soon lost interest with it.
On the same year, Andel and DeVos formed the Ja-Ri Corporation which later became a distributor of Nutrilite products. Rumors regarding the stability of Nutrilite have forced the partners and their top distributors to establish The American Way Corporation or The Amway Corp in 1959. The company would represent the distributors and would also look for new products to market and profit.
The Amway Corp is based in Ada, Michigan, United States of America and has an estimated revenue of $ 9.2 billion in 2010. The company employs more than 13,000 individuals in their offices excluding their large team of independent distributors. The Amway Corp is under the family of Alticor has a reported sales growth of 9.5% which amounted to the whooping revenue in 2010. 60% of the revenue is attributed to Amway Corp’s beauty products line.
The success of Amway Corp was further proven by the awards and recognitions it received. In fact in 2006, Amway Corp was ranked 114th largest global retailer by Deloitte and gained the 32nd place in the 2010 Forbes List of largest US companies.
Amway Corp operates in more than 80 countries as of the year 2011. This is according to the website of the company. The countries are organized in regional markets that are the Americas, Europe, greater China, Southeast Asia/Australia, Japan and Korea. Just recently, 2/3 of Amway Corp’s 58 markets have managed to increase sales including strong increases in sales in Russia, China, and India. Among these countries, the Indian Amway Corp market has registered the greatest increase in sales which is 40% or $230 million.
Amway Corp’s first product was the laundry detergent SA8 which they marketed in the year 1960. The management of Amway Corp then decided to look for bigger markets to compete with and thus, in the year 1965 sold their hair care product line called Satinique. Three years later – 1968 – Amway Corp launched yet another product line named the Amway Artistry which is a cosmetics line. As the years progressed and the competition for Amway Corp products continues to intensify, the company never stopped developing and marketing new products to the market which led to the current 450 and more products of the company.
There are various manufacturing facilities that Amway Corp makes use. There are those in China, India, and the US of A. Amway Corp also makes use of organic farms of Nutrilite located in Mexico, Brazil, and in the states of California and Washington in USA. Aside from those manufacturing and utilities sites, Amway Corp affiliates also make use of the products of more than a hundred manufacturers which includes Barnes and Nobles and World of Wine.
Amway Corp currently delivers high quality products under different brands. These are as follows.
This line is the first from Amway Corp which is coincidentally, the reason why Amway is so well known throughout North America. Some of the products under this brand are the multipurpose cleaning product named LOC, the SA8 laundry detergent, and the Dish Drops dishwashing liquid. Amway Corp has also managed to bag some awards and recognitions because for this line. In January 2007, the SA8 with Bioquest was tagged as the best performing laundry detergent by Consumer Reports.
Health and Beauty
After the successful first line, Amway Corp developed a new line for health and beauty. Some of the brands that are included in the health and beauty line of Amway Corp are:
- Artistry Essentials
- Pure White
- Body Series
- XS Energy Drink
- XL Energy Drink
This is probably Amway Corp’s largest selling brand name. Nutrilite (Nutriway in some countries) is a range of health supplements distributed globally by Amway Corp. Five of the products of Nutrilite were the first ones certified by NSF International in 2001 proving the point that Amway Corp products are real and effective. To further prove this point, an independent survey conducted by Consumerlab.com in 2002 has stated that Nutrilite has the highest consumer satisfaction rating under the MLM category. Furthermore, Readers Digest have awarded either “Platinum” and “Gold” awards to Nutrilite in 2006 to 2009 as “Trusted Brands of Asia” in China, Taiwan, Malaysia, Thailand, and Asia in general.
Amway Corp introduced the eSpring water filter in 2000 and became the first home water treatment system in the world. It was also the first home water filter system to gain certification for ANSI/NSF Standards 42, 53, and 55.
Following Amway Corp’s MLM structure, issues and controversies regarding its legality and “pyramid” scheme were abundant. The most prominent claim is that of Amway Corp being a “fraud” as its promise of bringing more money to its independent distributors was just an empty promise. Amway Corp was also accused of tax evasion which led to the statement of DeVos in 2009 defending the company. He stated that he and Andel failed to discipline the organization and come down fast enough to sort everything out. Nevertheless, he claimed that the rumors about the tax evation of Amway Corp are not true. To dispute the “pyramiding scheme” claim, Harvard Business School of Leadership described Amway Corp as one of the most profitable direct selling companies in the world.
Today, Amway Corp still survives and not just barely doing so. In fact, Amway Corp is one of the leading direct selling/MLM companies the world has ever seen. Packing in its 50 years of history and quality products certified by trusted organizations in the world, Amway Corp is one company to beat.