Amway smashes through $10 billion

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 ūüôā

Amway India letter to distributors

The following email sent by Amway to all Emeralds and up in India a couple of weeks ago regarding the situation with Sajeev Nair and MonaVie

Dear Leaders,

Greetings from Amway India !!!!

As  you  are  aware  by  now,  Amway  India had its biggest sales month in September’11  when  we  had  Rs.251 crore of sales. With such excitement & momentum,  I  am not only confident of achieving our Goal of Rs 2500 cr by 2012,  but also convinced that we will attain higher GOALS in the years to come.

We ¬†have ¬†introduced ¬†several ¬†‚ÄúPositive ¬†Changes‚ÄĚ ¬†in ¬†the ¬†business from¬†November 1st that would further fuel our growth & offer a safer future for¬†our ¬†ABOs. ¬†These revisions have been accepted very well by leadership all¬†around.

With ¬†growth, ¬†we ¬†also attract attention of various entities. One of them¬†can ¬†be ¬†competing organizations who claim to be ‚ÄėJust Like Amway‚Äôbusiness¬†opportunities. ¬†Amway ¬†India ¬†& ¬†the Direct Selling Industry is poised for¬†huge ¬†growth in years to come, which pulls organizations to get a share of¬†this ¬†growing ¬†market. ¬†While ¬†we ¬†appreciate ¬†healthy ¬†competition, it is¬†unfortunate that some organizations choose improper & dishonorable methods¬†to ¬†grab ¬†business ¬†& ¬†get ¬†a ¬†foothold ¬†in the market. We have reasons to¬†believe ¬†that ¬†such ‚ÄėCopycat Businesses‚Äô with shallow income opportunities¬†have ¬†been ¬†targeting ¬†YOUR ¬†line ¬†of sponsorship to build THEIR business.¬†They are really not competitors but actually “predators”.

I  wanted  to  take this opportunity to advise you on expected launch of a company  in  the  Direct  Selling  market in India and what activities are currently  taking  place  openly  &  surreptitiously,  leading  up to this launch. Continue reading Amway India letter to distributors