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A stuttering economy has put a brake in direct-selling FMCG company Amway’s growth in India.
Compared to 20 per cent compounded annual growth between 2007 and 2012, Amway clocked a little over 7 per cent growth on a turnover of Rs 2,288 crore in 2012 against Rs 2,130 crore in 2011.
“The overall market sentiment had been subdued last year. Besides, our products belong to the discretionary purchases category. While there had been fantastic growth during 2007-12 averaging 20 per cent, the growth was lower in 2012,” Vice-President (North) Achinta Banerjie told Business Standard here.
However, the revenue share of e-commerce has risen to 35 per cent from 3 per cent in 2007. “Now, e-commerce accounts for about Rs 700 crore of our revenue,” he said.
The company has done well in Uttar Pradesh, recording sales of Rs 141 crore in the last fiscal. Amway has offices in major cities of the state.
Amway accounts for 40 per cent of the direct sales and multi-level marketing segment.
For years, the industry has been striving for setting up of a national regulatory framework. However, there is no clarity yet as to which central department —finance, commerce, or industry and corporate affairs — would oversee the sector.
