ADA — Direct-selling giant Amway Corp. generated $8.4 billion in sales for 2019, down 5 percent from 2018, according to an announcement today.
The losses were driven by “significant declines” in the overall direct-selling market in China, the Amway’s largest market.
The privately held company’s top 10 markets include China, the U.S., Korea, Japan, Thailand, Taiwan, India, Russia, Malaysia and Hong Kong. Thailand leads the way in “fast, sustainable growth,” according to the company which invested in a personalized weight-loss mobile app in the country last year.
“Amway is investing in a future both online and offline. We’re making it easier than ever for people to build a business of their own in areas they may already be passionate about, like health and beauty. All powered by social and digital tools that help them reach customers more efficiently and make online shopping simple,” Amway CEO Milind Pant said in a statement.
The company said it will invest more than $500 million in 2020, partly in new digital platforms.
“Amway is already aligned with some of the biggest global trends, like the gig economy, increasing consumer demand for product experiences that support a healthy lifestyle, and the rise of communities on social media that connect people with similar passions and interests,” Pant said.
Amway also will continue to invest in traceability in nutrition and beauty through natural ingredients, especially the botanicals grown on its certified organic farms. Amway grows, harvests and processes nearly 6,000 acres of certified organic farmland in the U.S., Mexico and Brazil.
In 2020, the company also expects “a greater focus” on products “that are especially appealing to those under 35,” including CBD cream and CBD cooling spray that just launched in the U.S., and similar CBD products that are slated to launch in 2020.
The nutrition category of vitamins, dietary supplements and weight management products continued to be the top sales category for Amway, representing 54 percent of sales, up 1 percent from 2018. Beauty and personal care products were 25 percent of sales, down less than 1 percent from last year.
Amway posted an increase in sales in 2018 after the company’s sales slumped from 2013 to 2017, as MiBiz previously reported. The company’s revenues peaked in 2013 at $11.8 billion.
The company began a two-year series of company-wide layoffs in 2018, which took place during a “comprehensive review” of Amway’s global organizational structure, as MiBiz previously reported.
Last week, Amway said it eliminated approximately 50 positions at its global headquarters in Ada in the final wave of local layoffs, as MiBiz reported.
In September 2019, the company eliminated 47 informational technology positions in Ada following 145 “back-office” cuts in April and 45 management-level cuts in December 2018. The company also closed two plants in West Michigan in 2018 as part of a restructuring of its manufacturing operations.
Amway has eliminated a total of 210 local jobs in the past 10 months, according to a filing with the state of Michigan.