Amway Facts and Figures
Amway, or some know as American Way is one of the world’s largest manufacturing and direct selling company. Amway company primarily focuses on manufacturing and selling health, beauty, cosmetic and home care products. It is currently listed as the #32 largest private companies in the USA by Forbes magazine by the end of 2010. Amway uses networking marketing as their primary means of selling their products, wherein members profit from the sale of their recruited members.
Amway was founded by best friends, Jay Van Andel and Richard Devos way back in 1949. It all started when Van Del and Devos signed up to become one of Nutrilite Products Corporation’s distributor, which became their largest selling brand in today. Nutritile Products Corporation was a direct selling company that mainly manufactures multivitamins and other health care products. Nutritile was using network marketing back then, adding profits to exisiting distributors who have invited new distributors. Following the sign – up, Vandel and Devos formed the Ja-Ri corporation as their Nutritile distributorship. By 1958, Vandel and Devos have already built an organization of 5,000 distributors. However, concerns on the stability of Nutritile’s product line was raised by the organization which led to Vandel and Devos to form the The American Way Association which purpose was to look for other products to distribute.
By then, Vandel and Devos together with the American Way Association bought Frisk, later known as the famous LOC (Liquid Organic Concentrate), which is an organic cleaner from a scientist in Ohio. This was their first product after the Nutritile product line.
They then formed the Amway Sales Corporation to handle the inventory, sales and marketing of the product, and formed Amway Services Corporation to handle the services and insurances for their distributors.
By 1960, Vandel and Devos together with their top distributors were able to buy 50% of the shares of Atco Manufacturing Company, which was the original manufacturer of Frisk or LOC, and subsequently changed its’ name into Amway Manufacturing Company.
In 1964, led by Vandel and Devos all their Amway companies, Amway Sales Corporation, Amway Services Corporation and Amway Manufacturing company merged into one single company known as the Amway corporation.
In 1972, Amway was able to partly control Nutritile Corporation and finally gain control in 1994.
Since then, Amway Corporation has been very successful in their business, selling, manufacturing and distributing all sorts of health care, home care, cosmetic products to the market in USA.
By 1971, Amway began its first expansion in the Australia, following by the Europe branch on 1973, and then Asia in 1974, Japan in 1979, Latin America in 1985, to China in 1995, Africa in 1997, India and Scandinavia in 1998, Russia in 2005 and the latest in Vietnam in 2008.
Today, Amway Corporation is still rapidly growing in their distributors, and is constantly increasing profits yearly. In 2004, Amway’s Health and Beauty products sales’ skyrocketed to 60% worldwide. And by the end of December 2010, Amway had a reached a sales of $9.2 billion dollars worldwide.