According to Amway's announcement earlier this year, the company's growth strategy focuses on digital, product innovation and business owner compensation. Below is a summary of key findings on its growth strategy.
Key Findings on Growth Strategy
- According to its Chief Executive Officer Milind Pant, “Amway is already aligned with some of the biggest global trends, like the gig economy, increasing consumer demand for product experiences that support a healthy lifestyle, and the rise of communities on social media that connect people with similar passions and interests. Our new multi-year growth strategy and investment plan will help ABOs capitalize on these trends to support their customers.”
- In order to drive global growth and enable Amway Business Owners to better serve their customers' needs, Amway is investing more than $500 million in 2020 in digital platforms, product innovation and independent ABO compensation.
- Digital strategy is one of the key areas in which Amway is investing to keep up with global trends. Note that the company has made investments in digital strategy even before this. For example, last year it rolled out investments in mobile and data platforms for ABO business management.
- Currently, Amway is utilizing a digital platform called the 3E “Easy, Early, Earning” to help ABOs in providing a more compelling customer experience in China. The platform "focuses on selling products through social commerce, in partnership with global technology leader Tencent." ABOs are paid commissions for new customer referrals on the platform while new customers are rewarded product discounts for sharing with friends.
- According to its announcement, Amway is investing in multiple digital capabilities to globally roll out similar programs. It aims to empower ABOs with social and digital tools to "reach customers more efficiently and make online shopping simple."
- The company will also continue to invest in its products as part of its growth strategy, particularly with a focus on production innovation.
- Amway will continue its investment in "traceability in nutrition and beauty through natural ingredients, especially the botanicals grown on its own certified organic farms – nearly 6,000 acres of certified organic farmland in the U.S., Mexico and Brazil, where Amway grows, harvests and processes plants using sustainable farming methods." Amway claims that these plant ingredients have been key differentiating factors for Nutrilite supplements and the company will prominently feature them even more in Artistry skin care.
- Furthermore, the company will bring out a range of new on-trend products especially appealing to those under 35, including recent launches:
- n* by Nutrilite, launching in Korea, Japan, China and the U.S. and addressing the top concerns of young consumers such as sleep, stress, focus, vision and immunity.
- Artistry Studio, a limited-edition collection of on-trend makeup and specialty bath and body products inspired by cities from around the world. The brand has launched three collections featuring New York City, Paris and Bangkok, with the next launch focusing on Tokyo this spring.
- CBD Cream and CBD Cooling Spray, just launched in the U.S. and the first of similar CBD products slated to launch in other markets in 2020.
Business Owner Compensation
- Its 3E platform mentioned previously serves as a strategy that focuses on both digital and ABO compensation. Supporting its ABOs for success, particularly in capitalizing on global trends, is a key area of growth strategy for Amway.
- In addition to the 3E platform, Amway is also investing in a new incentives program called Core Plus+ to increase "the earning opportunity for those who choose to start their business with Amway and rewards best practices in building a strong, sustainable business."
- Benefits include more earning potential, more consistency and more predictability so ABOs can set goals and make plans for more than just the year ahead.