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This is the blog where leaders come to learn with NY Times, Wall St. Journal, USA Today, Money & Business Weekly best selling co-author of Launching a Leadership Revolution & Top 25 Leadership Gurus List Best of the Rest Selection - Orrin Woodward. This blog is an Alltop selection and ranked in HR's Top 100 Blogs for Management & Leadership.
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Re: Re: Re: Re: Re: Amway Sales Numbers
by
Anonymous
Heck, I can't even get global sales data out of MonaVie, so a bit harsh to criticise Amway for lack of individual countries information! :-)
I've been studying Amway and collecting Amway info for a decade now, mostly as an outsider, and in most new markets it appears sales increase dramatically for a couple of years, then tend to flatten or drop off a bit, then slowly start to rise again after 6-7 years. After that it seems to have more to do with fluctuating economies and a handful of individual IBO leaders than anything else. As Maxwell says, in the end it all comes down to leadership. Spain was doing extremely well a decade or so ago, then their major leader died in a plane crash, the remaining leaders squabbled, it collapsed. Hungary had leadership squabbles a few years back (involving N21 incidentally), sales plummeted and are only recovering again now. North America has undoubtedly suffered from the Storms/TIF/Team disputes and others.
Internationally, markets also seem to be very heavily influenced by other market openings. This has been particularly apparent in Australia where a lot of international Amway business originates from. Every time Amway opens a new market, many of the top leaders fly off, focused on the new market opening, and sales suffer. Similar things happened in SE Asia when China opened - the local markets suffered.
Curiously, in english speaking markets a least, the move to an internet-focused business seems to have had an almost instant and dramatic negative effect on sales. US, Australia, UK all dropped substantially with the launches of the internet portals. Part of that was apparently disillusioned "old-timers", but I believe a major issue there was, surprisingly enough, product pricing! Now I don't happen to believe the majority of Amway products are "overpriced" - but they are however expensive. 10 years ago, who was the "target market" for an internet-based business opportunity? The young and the internet-hip. Who is the "target market" for the profitable and corp-focused products like Nutrilite and Artistry? Certainly not the young and the internet-hip! How about the premium quality catalogue products?
So folk were all madly going out recruiting people with the whole "internet business" tag and then trying to get these new young IBOs using all the Q* products. Quality products undoubtedly, but also at a quality, and importantly price point substantially higher than younger folk were used to paying.
There was a fundamental disconnect between the target market for the products and the target market for the business opportunity, something which could quite predictably (in hindsight at least!) cause all sorts of problems, including of course, lots of internet-hip folk going on line talking about how much money they lost and how expensive the products are!
In short, while it's an interesting exercise of the type I am fond of doing, getting all the sales data and throwing it in to interesting equations may tell us something, but not necessarily anything that particularly reflects what's going on in the real world. As you yourself showed in the US, in a struggling market some innovative leadership can create startling results.
Which isn't to say Amway Corp. has nothing to do with it. Quite clearly innovative leadership has been lacking for some time, though I sense the tide is turning. The dispute with yourself and Team, and in particular the UK situation has certainly awoken some people from their slumber. Whether that's enough to remain ahead of younger, and perhaps nimbler, competitors like MonaVie remains to be seen.
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