Business

The success of Amway products is predominantly driven by the quality of the products. AmwayIndia's products are mostly sourced from manufacturing units from India. It has outsourcingcontracts with 5 major units in India. The products are sourced after strict quality checks.

Amway also faces this issue. The products of Amway are excellent but very expensive. Forexample, the Persona brand of soaps cost Rs 30 which is almost double the rate of an ordinarysoap. Persona is one of the best soaps in terms of quality but price is definitely a dampener.

Another example is the range of cosmetics under the brands Attitude and Artistry.

Artistry istargeted at the premium class and Attitude at the middleclass. But the price of these brands makethe consumer think twice before buying it. Hence the ABOs have a tough time convincing the valueproposition..

Among the 80 products, one of the best seller for Amway is the Nutrilite

brand. Nutrilite is anutraceautical supplement and this brand contributes around 50% of Amway's turnover. The brandvirtually faces no competition so far. The Indian nutraceauticals market is estimated to be aroundRs 1500 crore and is rapidly growing. Many Indian companies are eyeing this segment and hasserious plans to enter this segment

Amway has understood that doing business in India will require a new business model. Thecompany has started to take steps in the right direction. It had tried to rationalize prices and bringin new value products. But to balance the price , cost, quality and higher commission is no easy task.

Understanding the issues, Amway launched its first corporate branding initiative in India . The brand came out with a Television campaign highlighting the customer-centric approach .

The products match Amway’s global quality standards. They carry a tamper proof seal and a ‘100% Money Back Guarantee'. If not completely satisfied with the product, the consumer can return it fora refund. Amway encourages the return of its...