Fast moving consumer goods (FMCG) company Amway India is targeting 25 per cent growth in turnover to touch around Rs 1,800 crore by 2010 and Rs 2,500 crore by 2012.
East India, one of its fastest growing markets, is expected to grow by 26 per cent in 2010.
William Pinckney, MD and CEO, Amway India, said that Amway's focus in the past two to three years to improve consumer access and awareness. “We have grown from Rs 799 crore to Rs 1,407 crore over the past three years as the quality of pick-up centres has undergone a sea change and is more experiential for consumers."
Amway India is a subsidiary of the $8.4-billion Amway Corporation, one of the largest direct selling companies in the world. It has 130 offices across India and covers over 4,000 cities and towns through its home delivery network. Amway does not have its own production facility in the country.
Amway India offers 115 products in five categories of personal care, home care, nutrition and wellness, cosmetics and gift catalogue.
“We launch around six products every year,” Pinckney said.
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Amway has launched Nutrilite concentrated fruits and vegetables and has also entered the fragrance category by launching Dynamite deodorant and Attitude deodorant. It has also relaunched its CTM skincare regimen under Artistry brand with new formulation and new packaging in September 2009, as well as revamped its Indian cosmetics brand Attitude with attractive packaging and formulation in January 2010.
In 2010 so far, Amway has extended kids nutrition range by launching new variant in kids nutritional drink category. “Nutrilite Protein Powder and Nutrilite Daily are the two highest selling products. Nutrilite Protein Powder is a Rs 187 crore brand. It grew 24 per cent in 2009 over 2008. Nutrilite Daily has become a Rs 131.78 crore brand in 2009 by registering a year on year growth of 33 per cent,” informed Pinckney.
Nutrition and Wellness is the key driver of Amway India’s growth in India. It contributes around 55 per cent of total turnover. Nutrilite, globally, is more than $3.8 billion brand while in India it is Rs 750 crore brand in 2009 and growing at around 20 per cent.
“The reasons for our growth is quite simple. There has been increasing health awareness in urban India that drives the growth of Indian wellness market. With the rise in disposable income, favorable market demographics, consumerism, changing lifestyle and globalization, Indian consumers now evince a strong desire to maintain healthy lifestyle,” Pinckney said.
Notwithstanding the current economic slowdown, which has impacted several sectors, the Rs 11,000 crore Indian wellness services market is expected to remain buoyant and has the potential to sustain a compounded annual growth rate (CAGR) of approximately 30-35 per cent for the next five years, says a latest study by FICCI and professional services firm, Ernst and Young.
Amway commands over 35 per cent of the market share and is the leading player in Vitamin and dietary supplement market.
The size of vitamin and supplement market in India is around Rs 2300 crore, compared to Rs 3,06,000 crore globally. Vitamin and dietary supplement market is poised to grow by 33 per cent by 2013 to 3,400 crore market.