Sales: $4.5 billion for beauty and home care products. Corporate sales: $9.5 billion.
Key Personnel: Steve Van Andel, chairman; Doug DeVos, president; Michael Cazer, chief operating officer; Su Jung Bae, chief marketing officer; Samir Behl, regional president, Europe, Africa and India; Mark Beiderwieden, regional president, Asia Pacific; George D. Calvert, Ph.D., chief supply chain and R&D officer; Gan Chee Eng, regional president, greater China; Candace Matthews, regional president, The Americas; John Parker, chief sales officer.
Major Products: Artistry, Body Blends, Clear.now, Personal Accents and Tolsom skin care and cosmetics; Body Series personal care; Glister oral care; Legacy of Clean home care.
New Products: Artistry Supreme LX and Artistry Hydra-V.
Comments: Corporate sales fell 12% to $9.5 billion, the second year in a row of declines. Beauty accounted for 25% of sales and home care accounted for 23% of sales. Amway maintained that it enjoyed constant dollar sales growth in 70% of its top 20 markets but, like many international companies, experienced soft sales in China and unfavorable currency exchange rates that negated gains.
“We experienced growth in seven of our top 10 markets and emerging markets in Latin America and elsewhere continue to perform well,” said Steve Van Andel, Amway chairman. “Several markets achieved record sales levels in 2015 with others producing their best performance in some time. An increasingly competitive environment in China and unfavorable currency exchange rates mask a positive year overall for Amway globally.”
The company experienced good growth in legacy markets like the US, South Korea, Japan, Taiwan and Malaysia, along with emerging markets such as Brazil, Mexico and many others. The top 10 markets for Amway in 2015 were China, South Korea, US, Japan, Thailand, Russia, Taiwan, Malaysia, India and Ukraine.
Sales may have shrunk in 2015, but that didn’t stop Amway from expanding its global footprint. Here’s a list of the five facilities that the company opened last year:
- $42 million nutrition manufacturing and R&D facility in Buena Park, CA;
- $81 million nutrition manufacturing facility in Ada, MI;
- $25 million nutrition manufacturing facility in Binh Duong, Vietnam;
- $13 million Amway Botanical Research Center in Wuxi, China; and
- $100 million nutrition, beauty, personal care and home care manufacturing facility in Tamil Nadu, India.
The company is expanding its footprint, as it says goodbye to two brands. Just last month, Amway sold luxury cosmetics lines Laura Mercier and ReVive to Shiseido Co. Specifically, Amway’s parent company, Alticor Inc., has agreed to sell New York-based Gurwitch Products LLC, the holding company for Laura Mercier and ReVive, to the 140-year-old Japanese cosmetics maker. Gurwitch had sales of $175 million in fiscal 2015.