India is a fast-growing market for consumer goods: Amway

March 23rd, 2010 - 11:35 am ICT by IANS  

By Arun Kumar
Washington, March 23 (IANS) A rapidly expanding middle class with high aspirations and a growing appetite for quality goods make India an attractive investment destination for consumer goods companies, says Amway chairman Steve Van Andel.

“The sheer size of the market, its relatively young population and economic and social stability all work in India’s favour,” Andel, who has been running America’s leading $8.2 billion direct selling company since 1995, told IANS in an e-mail interview.

For Amway, India is one of its fastest growing markets. “It has been growing by double digit percentages for a number of years. In 2009, Amway India has reached sales of Rs 1,407 crore or $300 million, a 25 percent increase over 2008,” he said.

He said 2009 marked another year of strong regional sales in China, India and South Korea for Amway.

Andel believes Amway’s sales in the region proves that its business model “resonates very well with the Asian consumers” and “our products meet consumer needs”.

The company is improving its product line, introducing new and modifying existing products, while building consumer awareness by sponsorships, endorsements and advertising campaigns.

Andel cited the use of internet and social networking sites to reach out to younger generations.

“The launch of Amway iPhone ‘app’ in North America was extremely well received,” he said. Amway is currently deploying Web 2.0 programme worldwide.

“While technology will continue to be a significant part of our growth, even in this day of Internet and virtual world, the bricks-and-mortar presence of our company and the personal service our sales people provide to consumers are irreplaceable,” Andel said, noting that direct selling still works.

(Arun Kumar can be contacted at arun.kumar@ians.in)

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