source: Amway Europe Leadership Training Seminar 2013
I’ve received a lot of queries about this and I’ve confirmed from reliable sources that Amway exceeded $10.2 billion in global sales for the 2010/2011 IBO financial year. Note that this is not the official 2011 sales figures – which should be self-evident since the year isn’t finished yet!
In 1999/2000 Amway/Alticor switched to reporting sales for a calendar year, to match the Alticor financial year. These are the figures Amway/Alticor releases every February. The IBO financial year however runs from September to August (matching the original Amway Corp financial year), and sales for this period are still reported internally and to Amway field leadership. It is at those meetings that the $10.2 billion figure has been presented. The Alticor figures that will be published in February will include revenues from other Alticor interests, such as Amway Grand Plaze, Fulton Innovation, Gurwitch products, and others. A few years ago they were reported as being around $100 million and they are probably higher today. This means that when Alticor’s official sales are published in February they’ll likely be higher than $10.2 billion.
This is, obviously, a huge milestone for Amway, particularly given global financial circumstances. Another question that has arisen is whether this now makes Amway the #1 direct sales company, surpassing Avon? Given Avon did $10.9 billion in 2010 it’s unlikely. Furthermore, as a public company, Avon reports their sales quarterly so it’s relatively simple to calculate their revenue for the October 2010 to September 2011 period, shifted just one month from the Amway sales. The result? For September 2010 to August 2011, Amway did $10.2 billion. For October 2010 to September 2011, Avon did $11.5 billion.
So no, Amway is not yet #1, but it is catching
Alticor, Amway’s parent company, has reported record sales of $8.4billion for 2009, a 2.3 percent increase of 2008. Real growth, accounting for currency fluctuations, was 5.9%.
Apart from Amway, the sales figures include revenue from other Alticor concerns such as Amway Hotel Corporation and recent acquisitions like Gurwitch Products and Metagenics, however the bulk of the sales is from the direct selling giant, Amway Corporation.
As noted with last years sales release, Amway is not providing breakdowns of particular markets, however they did note – Continue reading 51 years and Amway continues to grow – $8.4 billion for 2009
In my earlier post (and in the comments) on Amway Global’s sales in 2008 I incorrectly thought that Internet Retailer regularly reported much the same overall figures as Amway reported as total sales figures for Amway North America.
It seems I was wrong. Regular visitor SP75 has tracked down the Internet Retailer reporter online sales data for previous years and compared it to Amway’s actual reported sales.
|Year||Online Sales||Total Sales||% difference|
|2004||$748 million||$1.058 billion||41.4%|
|2005||$751 million||$1.094 billion||45.7%|
|2006||$880 million||$1.118 billion||27.0%|
While it’s fairly clear that online sales are becoming an increasingly larger percentage of Amway’s sales in North America, what’s also clear is that Amway’s online sales increased 5.4% from 2007 to 2008. If we guestimate and say actual sales were 20% higher, this puts Amway Global’s actual revenues in the region of $1.084 billion for 2008. Personally I think that if Amway’s sales had been over the billion dollar mark again in 2008 they would have said so, but it would appear that it probably wasn’t far off. It seems any negative effects of the TEAM dispute and the name change to Amway was nowhere near what I thought! What’s most interesting is that I have heard unconfirmed reports that the total number of renewed IBOs at the end of 2008 was down as much as 30% over the previous year. With the loss of business from TEAM, this implies that remaining Amway groups must be growing substantially in volume, even accounting for the fact (revealed in the TEAM vs Quixtar california lawsuit) that IBOs affiliated with TEAM generated significantly less PV than the average.
I’m guessing things are looking good for Amway Global in 2009!
Thanks again to SP75 for bringing this to my attention.
Back in February, Amway reported their 2008 sales at $8.2 billion globally. In a break from previous years, the data for Amway Global/Quixtar in North America was not reported separately. In what was clearly a bit of spin, Amway PR explained they were moving away from reporting individual market data. The US press releases rarely mentioned individual international data in the past, and many Amway affiliates around the world have continued to release their sales data. Quite obviously, Amway Global’s sales (confusingly, Amway Global is actually only Amway North America) must have suffered in the continuing fallout from the dispute with TEAM, as well as the initially unpopular decision to revert Quixtar back to the Amway brand.
Well – now we know. Last week it was announced that Amway Global has again been ranked the #1 online Health & Beauty retailer by Internet Retailer. This is the sixth consecutive year Amway has topped these rankings, with an astounding market share of nearly a third. Hidden in the press release though, it was reported that Amway Global’s sales were $904 million in 2008, a drop of nearly 10% from 2007 sales of just over a billion, which were themselves a 4% drop from Amway North America’s best ever year in 2006.
With the publicity surrounding Amway’s 50 year anniversary, and the Orlando Magic’s challenge for the NBA Championship at Amway Arena, as well as other great initiatives like the Amway Global LA Sol and San Jose Quakes, it’s clear to me that the decision to move back to the Amway name was the right one, though as I said in February, it will probably take a few years to really have an effect.
UPDATE: Please read this post for important new information – Amway Global sales up 5% in 2008?
This is an update of a graph I did last year for AmwayWiki
Amway global sales were reported at “estimated retail” until 2000 when the holding company of Alticor was formed. This means they’re valued assuming that they were all sold at the full retail price, not at the price they were sold to distributors/IBOs. Alticor reports actual revenue – sales at the base IBO price. I’ve converted the figures so they can be properly compared. It’s important to be aware of this as many critics of the business (including some former Diamonds who you would think know about this) have in the past conveniently ignored the change in reporting standards and tried to claim Amway’s sales peaked in 1998. Note however that Alticor sales includes revenues from other sources such Access Business Group and Amway Grand Plaza. In 2007 this was reported as around $100 million, so by far the majority of the sales are through the Amway business opportunity.