Amway (Short For The "American Way", Renamed To: Forbes Direct Selling News
Amway (Short For The "American Way", Renamed To: Forbes Direct Selling News
Amway (Short For The "American Way", Renamed To: Forbes Direct Selling News
that uses a multi-level marketing model to sell a variety of products, primarily in the health,
beauty, and home care markets.[3][4][5] Amway was founded in 1959 by Jay Van
Andel and Richard DeVos. Based in Ada, Michigan, the company and family of companies
under Alticor reported sales of $9.5 billion for 2015, the second consecutive year of decline for
the company.[1] Its product lines include home care products, personal care products, jewelry,
electronics, Nutrilite dietary supplements, water purifiers, air purifiers, insurance, and
cosmetics. It has several times been subject to investigation in various countries, by institutions
such as the United States Federal Trade Commission (FTC), for alleged pyramid
scheme related practices.[6][7][8][9][10]
Amway conducts business through a number of affiliated companies in more than a hundred
countries and territories around the world, ranked No. 29 among the largest private companies
in the United States by Forbes in 2015 and No. 1 in multi-level marketing by Direct Selling
News.[11][12][13]
Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974, to
Japan in 1979, to Latin America in 1985, to Thailand in 1987, to China in 1995, to Africa in 1997, to
India and Scandinavia in 1998, to Ukraine in 2003, to Russia in 2005, and to Vietnam in
2006.[citation needed]
Brands[edit]
Amway's product line grew from LOC, with the laundry detergent SA8 added in 1960, and later the
hair care product Satinique (1965) and the cosmetics line Artistry (1968). Today Amway
manufactures over 450 products, with manufacturing facilities in China, India and the United
States, as well as Nutrilite organic farms in Brazil, Mexico and the United States (California and
Washington State). Amway brands include Artistry, Atmosphere, Body Blends, Bodykey, Body
Works, Clear Now, eSpring, Glister, iCook, Legacy of Clean, Nutrilite, Peter Island, Perfect
Empowered Drinking Water, Personal Accents, Ribbon, Satinique, Artistry Men and XS.
In 2015, the vitamins and weight management products accounted for 46 percent of Alticor's
sales. Beauty and personal care products represented 25 percent of sales while durable products,
such as eSpring water treatment systems and Atmosphere air treatment systems, represented 16
percent of sales. Home care products generated 7 percent of sales.[1]
According to Euromonitor International, Amway sells more products with a satisfaction guarantee
than any other direct seller.[31]
Household cleaners[edit]
Amway is best known in North America for its original multi-purpose cleaning product LOC, SA8
laundry detergent, and Dish Drops dishwashing liquid. In the January 2007 issue of Consumer
Reports, SA8 with Bioquest was rated the best-performing laundry detergent, scoring 99 out of a
possible 100 points.[32] Consumer Reports did, however, criticize SA8's pricing, a situation which
was disputed by Amway.[33] Consumer Reports conducted blind testing of detergents in 2010 and
ranked versions of Amway's Legacy of Clean detergents 9th and 18th of 20 detergents tested.
Consumer Reports program manager Pat Slaven recommended against buying the products
because consumers can "go to the grocery store and get something that performs a whole lot
better for a whole lot less money".[34][35]
Amway's health and beauty brands include Artistry, Satinique, Hymm, Body Series, Glister, Moiskin
(South America),[36] Nutrilite, Nutriway (Scandinavia and Australia/New Zealand), Attitude (India),
eSpring, Atmosphere and iCook as well as XL and XS Energy drinks. Other Amway brands that were
discontinued or replaced include: Tolsom, Eddie Funkhouser New York, or beautycycle (Eastern
Europe).
Artistry[edit]
Amway's Artistry products include skin care, cosmetics, and anti-aging creams and serums. In
2011, Artistry brand reached sales of $2.8 billion.[37] According to Euromonitor International, the
Artistry brand was among the world's top five, largest selling, premium skincare brands, and
among world's top ten, largest selling, premium cosmetic brands in 2014–2015.[31]
Nutrilite[edit]
Amway's largest selling brand is the Nutrilite range of health supplements (marketed as Nutriway
in some countries), and in 2008 Nutrilite sales exceeded $3 billion globally.[38] In 2001, five
Nutrilite products were the first dietary supplements to be certified by NSF International.[39] In
2006, 2007, 2008, and 2009 in the nutrient and health food category, Nutrilite won "Platinum" and
"Gold" awards in Malaysia, China, Taiwan, Thailand, and Asia overall in the Reader's Digest
"Trusted Brands of Asia" survey.[40] In 2008 Nutrilite scientists, in partnership with Alticor
subsidiary Interleukin Genetics won the 12th John M. Kinney Award for Nutrition and Metabolism
for their research into the interaction between nutrition and genetics.[41]
In 2011, Nutrilite brand of vitamins and dietary supplements led Amway's sales, totaling almost
$4.7 billion.[37] According to Euromonitor International, in 2014, Nutrilite was the world's No. 1
selling vitamins and dietary supplements brand.[31] In 2015, it was reported that according to
Euromonitor International, Amway was the largest vitamin and dietary supplement vendor in
China, with 11% of a market that generated 100 billion yuan ($15.6 billion) in annual sales.[42] In
2015, it was reported that according to China Confidential consumer brands survey, Amway
Nutrilite was the most popular vitamin and dietary supplement brand in China.[43]
In January 2009, Amway announced a voluntary recall of Nutrilite and XS Energy Bars after
learning that they had possibly been manufactured with Salmonella-contaminated ingredients
from Peanut Corporation of America. The company indicated that it had not received any reports
of illness in connection with the products.[44]
In 2012, the Center for Science in the Public Interest (CSPI), accused Amway of making
unsubstantiated and illegal claims about Nutrilite Fruits & Vegetables 2GO Twist Tubes and
threatened to launch a class action lawsuit against the company unless it took remedial
action.[45][46] Amway countered that the claims made about the products were properly
substantiated and that they did not plan to change the product's labeling but nevertheless would
review the statements that CSPI has questioned.[47] CSPI later reported that Amway had agreed
to changing product labels by the end of 2014.[48]
eSpring[edit]
Amway's eSpring water filter was introduced in 2000. According to Amway, it was the first system
to combine a carbon block filter and ultraviolet light with electronic-monitoring technology in the
filter cartridge and it became the first home system to achieve certification for ANSI/NSF
Standards 42, 53, and 55.[49][50] According to Amway, eSpring was the first water treatment
system to receive certification for all fifteen NSF/ANSI 401 contaminants which includes
pharmaceuticals, pesticides and herbicides.[49][51] The company also claims that, in addition to
these 15 contaminants, eSpring is certified for more than 145 potential contaminants, including
lead and mercury.[49]
eSpring was the first commercial product which employed Fulton Innovation's eCoupled wireless
power induction technology.[52] In December 2006, Amway sister company, Fulton Innovations,
announced that it would introduce eCoupled technology in other consumer electronic products at
the 2007 Consumer Electronics Show.[53] Companies licensing this technology include Visteon,
Herman Miller, Motorola and Mobility Electronics.[54] Fulton was a founding member of the
Wireless Power Consortium which developed the Qi (inductive power standard).[55]
In 2007 eSpring was ranked fifth out of 27 brands in a comparison of water filters by Consumer
Reports.[56] In 2012, eSpring scored 94 points (out of a possible 100 points) – best among
countertop models and third out of 18 brands in a comparison by Consumer Reports.[57]
In 2013, eSpring was one of the Reader's Digest Trusted Brands Award winners in the water
purifiers category in Malaysia.[58] In 2015, Amway was recognized for the sixth consecutive year
by Frost & Sullivan as Asia Pacific Water Filtration company of the year.[51] According to an
Amway commissioned study of global sales conducted by marketing research firm Verify Markets,
eSpring was the world's largest selling brand of kitchen water treatment systems and home water
treatment systems in 2014.[59]
XS[edit]
On January 14, 2015, Amway announced that it had acquired XS Energy, a California-based brand
of energy drinks and snacks. The XS Energy brand has been sold as an Amway product since 2003.
As of January 2015, it has been distributed in 38 countries, generating annual sales of $150
million.[60][61][62]
According to Euromonitor International, the XS Energy was the first exclusively sugar-free energy
drink brand sold globally.[31]
Commercial sponsorships[edit]
In December 2006, Alticor secured the naming rights for the Orlando Magic's home basketball
arena in Orlando, Florida. The Orlando Magic are owned by the DeVos family. The arena, formerly
known as the TD Waterhouse Centre, was renamed the Amway Arena. Its successor, the Amway
Center, was opened in 2010, and the older arena was demolished in 2012.[66]
In 2009, Amway Global signed a three-year deal with the San Jose Earthquakes Major League
Soccer team to become the jersey sponsor.[67]
In March 2009, Amway Global signed a multi-year deal to become the presenting partner of the
Los Angeles Sol of Women's Professional Soccer.[68] The deal, however, would last only one year,
as the Sol folded the next year.
In 2011 Amway signed a three-year deal to be the presenting sponsor of the National Hockey
League's Detroit Red Wings.[69]
Since 2012, Amway has been the title sponsor of the Canadian Championship, an annual soccer
tournament.