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“We were able to generate strong growth by leveraging on the solid foundation implemented in 2020 and taking on vigorous steps. We continued to focus on delivering innovative products while strengthening our support for our entrepreneurs, and further enhancing our eCommerce platform in our effort to stay relevant and to meet our customer needs and expectations,” said Mike Duong, Managing Director of Amway Malaysia, Singapore and Brunei.
While healthy living has always been important, the pandemic has pushed it to the forefront of society’s priorities so much that health is positioned as the new wealth. Amway’s broad portfolio of over 450 high-quality consumer products covers a wide range of customer needs. In particular, Amway’s health and wellness category “Nutrilite” has been an early pioneer in plant-based nutritional supplements for healthier living. Nutrilite sales growth was a major contributor to Amway Malaysia’s total revenue for FY2021.
“We are committed to serving Malaysia’s health and wellness needs. We will continue to introduce safe, high quality, and relevant products across all categories in an effort to meet customers’ needs while offering fun and engaging communities for achieving a healthy lifestyle,” remarked Mike.
Amidst the pandemic, many people were looking for an alternative career, with greater financial security and more flexible working conditions. Amway has always placed emphasis on offering a low risk, money-back guaranteed opportunity for business ownership. The Group introduced various initiatives to further improve the entrepreneurial business journey.
“These new initiatives, coupled with the strong demand for Amway’s health and wellness products, led to half a million new entrepreneurial Amway Business Owners (ABOs) and registered customers signups in 2021. In addition, we see 3 times increase in the number of early ABOs earning bonus from the sale of products to their customers, as well as more ABOs, earning higher recognitions and levels of business success,” said Mike.
For over 40 years, Amway has been a traditional door to door business model, with physical product demonstrations, home meetings, and purchases through retail stores. However, all that changed during the COVID-19 pandemic as Malaysia imposed the Movement Control Orders (MCO) over the past two years to curb the spread of the virus. The physical lockdowns led to a mass migration of business practices and sales onto virtual platforms for survival’s sake, including a period where 100% of all business events and activities were conducted virtually.
“Given the COVID-19 MCO impacts on the traditional physical business operations, Amway fast-tracked its eCommerce and contactless delivery investment and development efforts. Amway’s online orders and home delivery now accounts for 60% per cent of total revenue, growing from RM274 million in 2019 to RM956 million in 2021. We will continue to invest in digital solutions for our entrepreneurs and customers while providing an engaging and convenient eCommerce experience,” said Mike.
The Group aims to deliver moderate topline growth for 2022 and will continue to strategically and prudently invest in specific areas to achieve long-term business growth, such as ABO-centric programs, new product launches & promotions, as well as further improvements to the digital platform and related delivery infrastructure. While the cost associated with these investments will exert pressure on operating margin, the Group expects the sales incentive plan rolled out in prior years to normalise thereby improving operating margin versus the prior year.
“As we progress towards our 50th anniversary in 2026, we are focused on delivering sustainable topline growth and improved profitability; growing the entrepreneurial ABO and registered customer force size; expanding our healthy & wellness solutions, community programs, and loyal customers; and modernising our omnichannel digital experience,” concluded Mike.
Source: AMWAY Global(Press release)
