Amway, the multi-level marketer of dietary supplements and other products, on Wednesday announced that its annual sales (US$8.8 billion) fell 7 percent from the previous year. The results marked the third consecutive year of shrinking sales.
Although sales improved in seven of the company’s top 10 markets, Ada, Michigan-based Amway cited “softening market conditions in China." It was the third straight year China had weighed down sales.
In 2013, Amway generated record sales of $11.8 billion, marking seven consecutive years of sales growth.
Last year, nutrition (49 percent) led Amway’s sales, followed by beauty and personal care (25 percent); durable products (15 percent); home care (7 percent); and other (4 percent). Nutrition sales were up 3 percent from the prior year, while beauty and personal care sales remained the same as in 2015.
In a press release announcing its 2016 results, Amway said it was bullish about the new year. It cited, for example, new product categories that were exceeding expectations, millennials’ interest in the Amway business in the United States, and the strength of converged product categories, such as a supplement focused on skin hydration (Truvivity by Nutrilite) that is beating sales expectations.
Amway’s top 10 markets include China, United States, South Korea, Japan, Thailand, Taiwan, India, Malaysia, Russia and Hong Kong.
“Across the world, Amway did well in 2016," Amway Chairman Steve Van Andel said in a statement. “We experienced sales growth in several top markets, saw double-digit percentage growth in nine additional markets, and continued to evolve the business in China as we seek to take advantage of shifting market conditions and achieve the market’s long-term growth potential."
Founded in 1959, Amway operates in more than 100 countries and territories. The direct selling giant, which manufactures and distributes around 450 consumer products, has reported paying out $55.9 billion in bonuses and incentives to its Amway Business Owners (ABOs) worldwide since its founding.