ADA, MICHIGAN, UNITED STATES (Feb. 8, 2017) — Amway today reported sales of $8.8 billion USD for the fiscal year ending December 31, 2016, a 7% decrease from the previous year's data. Although the direct seller saw a growth in sales in seven of its top ten territories, market conditions in China were becoming more difficult for it to operate in.
“Amway had a successful year in 2016,” said Steve Van Andel, Chairman of Amway International. “We saw sales increase in several of our top regions, as well as double-digit percentage growth in nine more markets. We also continued to develop our company in China, as we look to take advantage of evolving market conditions and realise the long-term growth potential of the market.
- More information can be found at: http://globalnews.amway.com/pressroom/news-release/news/amway-announces-2016-sales#sthash.4g213ipz.dpuf. -
It's amusing to see how Amway manages to turn a 7 percent loss into a positive outcome. In 2013, Amway's sales totaled 11.8 billion dollars. Defendants for Amway were screaming from the rooftops that this was proof that Amway had arrived and that they were about to "explode." The Amway defenders were right. In 2014, Always's sales totaled 10.8 billion dollars. They sold 9.5 billion in 2015, which represented a 12 percent reduction, and now sell 8.8 billion, representing another 7 percent decline.
My apologies for not being able to pinpoint the actual cause of the significant reduction. It's possible that Amway has reached market saturation, and that consumers are obtaining pertinent information and making good selections as a result of the ease with which information is available.
Regardless of the outcome, it will be fascinating to see what occurs over the next few years. Due to less sales, I would expect fewer huge pins and less tool money for the diamonds to be available. Earlier this year, I heard that some functions were being moved to smaller locations, which could indicate that tool income is declining and that diamonds are no longer raking in the cash like they used to. In any case, keep an eye out for updates. Time will tell whether or not this is true.
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