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.
In particular, we are encouraged by the sustained and rising relevance of the direct selling model in today's economy, as people place a high value on personal recommendations and technology allows our distributors to connect with clients from any location and at any time.
Joecool's point of view is as follows: Amway's 7 percent loss comes after two years of double-digit decreases for the corporation. Amway generated revenues of $11.8 billion at its height, and the company has been on a downward spiral ever since. Amway Corporation attempts to put a good light on the situation, but my sense is that the company has reached a point where they will be unable to prevent the inevitable from occurring.
It appears that the majority of Amway's "strong" growth occurred in foreign and new territories throughout those years of growth. However, if these other countries begin to realise what the United States already has, it is projected that sales would begin to decline gradually. I feel Amway's products are often overpriced and uncompetitive, but IBOs who are looking to "go diamond" will typically be willing to spend money on products if they believe Amway will help them become financially independent. When the dream is no longer there, so is the demand for Amway's goods and services.
I believe Herbalife is beginning to experience a similar downturn to that which occurred in their China market this past quarter.
Whatever transpires in the future will be fascinating to see unfold. The fact that a "legal" product pyramid whose "leaders" have deceived hundreds of thousands of people over the years is beginning to suffer serious deterioration to the point where their "diamond lifestyles" are really jeopardised is not something I can say I'll be sad about. I'm curious as to what the diamonds are saying these days, given that the company is experiencing significant reductions.
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