Online sales have tripled for Amway in two years

Last Updated: Mon, May 07, 2012 19:32 hrs

The online sales have more than tripled for Amway, India’s largest direct selling FMCG company, in the last two years.

Currently, online sales account for about 31 per cent of the company’s sales, up from 7-10 per cent two years back.

“In the next three years, we expect the online segment to account for almost 40 per cent of our sales,” Amway vice president (North) Bhuvan Kapur told Business Standard here.

He said online sales category was still a growing segment in India, while in developed economies, it accounted for 60-70 per cent of the sales for direct selling firms.

Kapur maintained internet/web provided the concept of ‘virtual office’ to companies, while giving the ease of shopping to customers.

Amway has 11 offices in Uttar Pradesh viz. Lucknow, Ghaziabad, Gorakhpur, Varanasi, Agra, Allahabad, Kanpur, Bareilly, Azamgarh, Jhansi and Meerut, along with 6 warehouses.

In last fiscal, UP had accounted for 6 per cent of Amway’s pan-India turnover of Rs 2,130 crore vis-à-vis Rs 1,790 crore in 2010.

The contribution of Amway’s flagship brand Nutrilite grew from Rs 903 crore in 2010 to Rs 1,106 crore last year. Now, the company is aiming at a turnover of Rs 2,500 crore this year helped by its entry into healthy ageing category.

Almost 97 per cent of products sold by Amway India are manufactured domestically through third-party contracts.

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