February 07, 2013
Amway, NuSkin Report Record 2012 Sales
As we prepare to publish our annual list of the top 100 direct selling companies in the world, we are excited to announce early reports of record numbers from industry leaders. Alticor Inc., parent company of Amway, today reported record 2012 global sales of $11.3 billion, compared with $10.9 billion in 2011.
The numbers reveal increased sales in each of Amway’s top 10 markets, a first for the company in more than 20 years. Amway also reports several additional markets posting double-digit increases in 2012. Three product categories represent 94 percent of the company’s sales: Nutrition (46 percent), Beauty (26 percent) and Home (22 percent).
DSN spoke to Amway President Doug DeVos about the factors contributing to the company’s record year. DeVos attributes much of Amway’s current growth to the Growth through Innovation business strategy the company launched six years ago.
The strategy includes an in-depth evaluation of whether Amway’s products, services and technology represent the best possible support the company can offer independent business owners. “We knew we had to get beyond the economic issue,” says DeVos. “We continually ask ourselves whether we are doing the best we can for our business owners—are we innovating, are we using technology well enough, are our products what they need to be? These are the questions to ask. Economic conditions should not drive the results of our businesses.”
Discussing what role the founding vision plays in Amway today and in the Amway of the future, DeVos says, “Everything! It is the same story with innovation applied, because we can always be better.” DeVos highlights the company’s advance into diverse markets. Some are young markets, some are old markets, but together they represent considerable geographic diversity. Amway is still improving lives, but is now reaching even more individuals around the globe.
Amway’s commitment to innovation includes plans to invest over $335 million in manufacturing and R&D. With new facilities in the U.S., India, China and Vietnam, the company will add to its 900 scientists, engineers, and technical professionals working in 65 R&D and quality assurance labs worldwide.
Good news also issued from NuSkin, which yesterday reported 2012 revenue of $2.17 billion, a 24-percent year-over-year improvement. NuSkin’s numbers include record fourth-quarter results at 19 percent over the prior-year period.
Truman Hunt, NuSkin President and CEO, attributes much of the record fourth-quarter growth to “strong trends in several key markets including Japan, South Korea and Mainland China where we continue to see tremendous results from our latest ageLOC products.” In the Greater China region alone, NuSkin reported the number of sales leaders and actives up 57 percent and 51 percent respectively in comparison to the prior-year.
Read more on the DSN Global 100 in our upcoming June 2013 issue of Direct Selling News.
Read the full Amway press release here.
Read the full NuSkin press release here.