In a recent announcement, Amway stated that their sales for 2015 were down 12 percent, at $9.5 billion. Amway's sales reached close to $12 billion at their zenith. Amway 2015 may be found at http://www.worldofdirectselling.com/amways-2015/. The global economy has been a little unstable of late, but what is the cause of the sharp decline in retail sales in particular? Despite the fact that WalMart's growth has slowed, the company's sales increased by 2 percent in 2015, amounting to approximately (ironically) 9.5 billion dollars. http://corporate.walmart.com/news /investors/2015/02/19/walmart-announces-q4 underlying earnings per share of 161 and further strategic investments in people, e-commerce, and Walmart-US comp sales climbed by 15 percent
Walmart's sales are still stable, in my opinion, because the company has a predictable set of clients who are also repeat customers who make regular purchases from them. This allows them to continue to grow their business even during a worldwide economic downturn. In fact, one could argue that Walmart sales would increase in a terrible economy due to the fact that customers can discover amazing discounts and save money at the retailer. Walmart has a policy that they would match any printed advertising price if you can locate one that is less expensive than theirs. That is an excellent deal.
How can Amway's sales decline explain this phenomenon? It is, in my opinion, a fairly straightforward matter. Amway does not have the same level of stability and repeat business as Walmart does. The company instead expels nearly half of its sales staff each year. As a result, Amway's revenue decline is very likely the result of Amway Independent Business Owners (IBOs) failing to replace IBOs who departed quickly enough to keep up with the attrition rate. As a result, there has been a significant fall in sales. When you factor in a difficult economic climate, who would want to pay premium rates for average-quality soap or other home items? According to my assessment, the market has spoken loudly and clearly.
The only way I see Amway growing is by expanding into new and foreign regions, where the company's name reputation is less well-known and not necessarily connected with "scam." This is the only way I see them surviving and prospering in the long run. Amway sales have been rather consistent in the United States and other presumably older areas, indicating that the company is likely to be able to recruit enough prospects to replace those who are leaving. Thank goodness for Amway that more people turn 18 every day, because if the potential IBO market didn't grow, I believe Amway would have been out of business in the United States.
Despite the fact that this post is merely my opinion, I believe it to be the truth. Apologists for multi-level marketing and Amway will come up with reasons why they believe I am incorrect, but I cannot see things any other way. Individuals, on the whole, are not enthusiastic about selling; as such, a popular technique taught by upline is to "purchase from yourself" and to be one's own best customer. In this context, it makes perfect sense that the decline in sales is due to a reduction in the number of people in Amway who are "purchasing from themselves."
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