Amway India, the Rs 1,100 crore direct selling FMCG company has witnessed a 40 per cent growth in its distributor network in the October-December period in the eastern region compared to the same period in 2007, in the wake of the widespread job cuts.
Buoyed by the robust growth in regional distributor network, the company is targeting 25 per cent growth in sales this year.
This apart, the company is also working on a new business model which the company plans to roll out by the end of this year to achieve its target.
Diptarag Bhattacherjee, Vice President-East, Amway India, said, at present it had over five lakh distributors in the country, of which almost 1.1 lakh were in West Bengal alone.
Eastern region, primarily West Bengal contributes around 20 per cent of overall business.
"I believe that there will be a significant addition to the number of distributors by the year-end, which will increase West Bengal's contribution to overall sales," he added.
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“Keeping the rising distributor network this year we have taken a realistic budget, around 25 per cent growth in sales in India as well as in West Bengal which contributes 20-25 per cent to national sales. But we could achieve a higher growth if newer products and robust distributor chain expansion works in our favour.
Already we have witnessed a spiralling growth in the number of distributor over the last quarter in the eastern region." informed Bhattarcherjee.
Till March-end, the company had been able to able to achieve a 40 per cent growth in sales with the growing distributor network.
Last fiscal, Amway India, expected Rs 1,000 crore, but it managed to touch Rs 1,128 crore during January-December 2008, an almost 40 percent growth over last year.
The company is also working on a new model of sales through specialised stores, which will be manned and owned by company distributors and not like conventional kirana stores. “We are working on a new selective non-conventional retail format, which will be different from the conventional retail format where Amway distributors will have one consumer access centre each, as we have one now at our main office in Kolkata where consumers will be able to purchase products directly. We are working on it, and hope to make it pan-India by year-end,” said Bhattacherjee.