The Hindu Business Line : Amway going rural with India-specific biz model

Amway is aiming to reach out to the country's emerging `rural and consuming middle class', says Mr William S. Pinckney, MD and CEO. The company finished the January-December 2006 at Rs 738 crore in turnover, up from Rs 633 crore in the previous reported 12-month period.

This represents a growth of almost 17 per cent and the expectation is that the Rs 1,000-crore milestone is just around the corner.

Amway India currently has a presence in 75 towns and cities. A perspective plan drawn up for the next three years envisages the company establishing a footprint in all the remaining 361 towns and cities. Of this, 100 will be covered during 2007 as part of the Amway Touch Points initiative.

Home delivery model

Amway has a home delivery model world over. Business owners can place orders for their products via Internet, phone, fax and the products get delivered at the doorstep.

While it has not been necessary to open offices at numerous locations in other markets, this has been a necessity in India. A central mother-warehouse supported by an extensive courier network does not work here.

"The main reason is that the Indian customer has a definite touch-and-feel approach to the products he/she buys. And the presence of an Amway office, where all the 80 products are displayed, definitely helps convince him/her that these people mean business, and are here to stay."

GROWTH DRIVERS

Mr Pinckney said he would rank the effort put in by Amway distributors across the length and breadth of the country, as being the major contributing factor for its growth. "We had 13 new launches in 2006. Our home delivery capacity went up from 2,000 to 2,500 locations."

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