Amway India, known for direct selling, moved online due to the COVID-induced lockdown as people remained cooped up in their houses and preferred shopping online. This indeed proved beneficial for Amway India.
The company witnessed a rise in online sales from 33.6 percent in February 2020 to over 70 percent in September 2020. Currently, the corporate is executing over 2.8 lakh home deliveries — an increase of over 200 percent from March 2020 — which is roughly 70-80 percent of Amway’s total sales. Amway is that the No.1 direct seller in India.
Before lockdown in March, the corporate executed 1 lakh deliveries, accounting for 40 percent of their total sales count then.
Amway expects the trend to continue and foresees online orders to succeed in over 5-6 lakh deliveries per month by the top of this financial year.“In the present scenario, the emergence of social commerce holds relevance as people are shifting online, showcasing a natural acceptance for digital,” Anshu Budhraja, Chief executive officer, Amway India, told Moneycontrol in an interaction. “As people search for personal recommendations online, many of our direct sellers have built social communities, delivering personalised product experiences by integrating their offline connection to the web network,” he added.
Amway India may be a wholly owned subsidiary of Amway, which has its headquarters located in Ada, Michigan, USA. The Indian arm sells quite 140 daily use products across categories like nutrition, beauty, care , home care, and durables . Nutrilite is its highest-selling vitamin and dietary supplements brand. Amway has 550,000 direct sellers across the country, of which 60 percent are women, at the present .
to enhance the shopping experience and ensure smooth last-mile delivery of orders, Amway India is functioning towards strengthening the availability chain and logistics.The company are going to be investing Rs 30 crore to enhance the house delivery experience by adding warehouse space, manpower, new logistics partners, automation in warehouses, and other back-end processes.
Amway India currently services 8,000 pin codes and aims to proportion to succeed in 15,000 by adding more national players and leveraging their network. it’s also looking to add 40 percent additional third-party manpower across India to support and fulfill the web demand.
Budhraja said there’s an increased awareness of holistic and preventive healthcare among consumers, prompting them to show towards wellness and immunity-boosting products.
“There may be a huge opportunity for health segment. with nutrition taking the middle stage. The growing demand for our products within the Nutrilite portfolio with a preference for herbal SKUs (Stock Keeping Units) is reflecting this trend,”
He didn’t say on what proportion sales the corporate has done in the nutrition category during COVID, but said he expects near to 10 percent growth during this category’s contribution within the next few years. Currently, the nutrition portfolio contributes 56 percent to the company’s sales.
Going ahead, the corporate is bullish on the nutrition and wellness category, which include immunity-supporting products.
As per the BCG COVID-19 Consumer Sentiment Survey 2020, over 28 percent more consumers have opted for nutritional supplements vis-à-vis pre-COVID-19 era, which shows a growing inclination for nutritional solutions to support overall health.
Apart from Nutrilite and other immunity-boosting products, the corporate also saw sales in other categories during the lockdown.
As consumers prioritised home and private hygiene, the corporate witnessed a gentle demand for products during this category. Amway Pursue Disinfectant Cleaner and Amway Home LOC multi-purpose cleaner emerged because the best-selling SKUs within the category.
Additionally, to meet the immediate consumer need and demand, within the previous couple of months, the corporate introduced the Persona Hand Sanitizer Gel. the corporate is additionally planning more product launches within the near future.
With the increased specialise in self-care through personalised skincare regimes, the demand for beauty products gradually showed positive traction, Budhraja said.
“In the initial lockdown phase, consumer purchases were skewed more towards essential items, but now we are witnessing some demand for the beauty category as people specialise in premium skincare solutions,” he added.
He expects demand to achieve further momentum within the coming months because the company plans to introduce new product innovations within the next few months.