2015-02-16 15:37
Behind the decline in the performance of Amway
CNDSN February 15th news (direct human network) recently, Amway group announced in 2014 the company had sales of $10800000000, down 10% compared with 2013. The company that is mainly influenced by the exchange rate fluctuation of Amway in China and foreign currency income decrease. And before this, in the "2014 China direct sales performance report", Amway China direct sales performance for 28700000000 yuan, 500000000 yuan sales share of less than 29200000000 yuan in 2013. The overall, Amway China's decline in the performance of floating is not large, but for the direct selling industry giant, and the direct sales industry in China has maintained for 7 consecutive years of growth, behind Amway's performance drop, what are the reasons? The change of strategic layout Don't do "e-commerce", only "electronic commerce" Today, electronic commerce, mobile Internet is becoming more and more popular, online shopping, mobile payment can be seen everywhere, people buying habits is being changed gradually. In this situation, many people think that the direct marketing has become a more traditional sales mode. In view of this situation, Amway Greater China President Yan Zhirong to think, any kind of business model, including electric model, are not universal. The key lies in whether the enterprise can adopt the appropriate way to foster strengths and circumvent weaknesses. The advantage of the electronic commerce is convenient, the disadvantage is the lack of face-to-face communication with the customer, so it is difficult to meet the personalized needs of the. The latter is the advantages of direct marketing. As a Direct Selling Company, and marketing staff between Amway partnership is the company successful, crucial for the sustainable growth. Any time, Amway kept to the marketing personnel's commitment, to protect their interests. Therefore, Amway Chinese do "e-commerce", only "electronic commerce". Why Amway China stresses do not "electronic commerce" to do "electronic commerce"? This is to enter from 2003 the United States Jetstar began speaking of china. In 1999, in order to conform to the trend of electronic commerce flourished in North America, Amway cooperation with Microsoft, IBM, created the Jetstar e-commerce site, also established the Czech company logistics enterprises to large production, storage capacity based on the. After the restructuring, created a new parent company, Alticor subsidiary of its subsidiaries include: Amway, Quixtar, Czech and Pyxis Innovation. The parent company of Alticor as early as the beginning of the establishment of clear: Jetstar only in North America, not in other countries of operation. However, Quixtar since 2003 "electronic commerce" way to penetrate the Chinese market, with its higher quality Lu, cheap, the Commission is rich, convenient operation and other advantages to attract a lot of people who like electronic commerce, Jetstar IBO in China every day more than 1000 speed in growth within a short period of time are obtained within the territory of China Great benefits. This makes traditional sales mode based Amway Chinese sales team continue to collapse, for three consecutive years, the Amway Chinese performance decline. Until its parent company Alticor pushing top-down merging policy, after the reorganization of the Amway still used two different sets of channel system in North America and China two largest market. Because it has such a history, Amway Chinese on strategic layout, consider more is how to make the sales channels and business channels combined, in enter the business at the same time, keep the marketing personnel harm the interests of. On this consideration, Amway has done a lot of strategic layout, such as Amway is to strengthen cooperation with the e-commerce giant Tencent, Amway marketing staff will be through the micro letter order products, for the entry of customers; at the same time, improve the operating system of the line, including electric business website, mobile APP management software, independent marketing personnel training and management of website, through the micro Bo public account and micro letter public account and marketing personnel, consumers remain open connection; these are the Amway implementation of "electronic commerce" way, improve marketing personnel utilization efficiency of electronic exhibition industry, it is the most important piece of the strategic layout of Amway China in 2014. However, Amway Chinese this against a series of electronic means, is only limited to the scope of Amway marketing personnel, such as WeChat place an order closed system, introduction of new consumers and no obvious effect. At the same time, by new consumer guide the publicity efforts do not, the new consumer can not be interest in. Therefore, whether it is from the small letter orders or mobile APP management software, this is only for the use of the Amway marketing staff, but was not able to attract more consumers into the new way of joining, bound for new consumer growth has some shortcomings. Product layout adjustment Nutrilite weight management market targeting According to the WHO forecast, to 2015, 50% to 57% of the population will China overweight. When the weight loss became a kind of life attitude, the weight loss market billions of market become hot. At this time, the first who can grasp the opportunity, who can first to seize the market to lose weight. And at present, China direct selling market weight loss products do the best is the herbalife. In the nearly 7 years of hard work, to "lose weight, Herbalife concept immediately to ask for" slogan and "weight management" as the main selling point, weight loss products brand influence has win support among the people, its weight management series products supporting our sales of more than 90%; in addition, America another green health brand Shaklee is start slowly rise in the China mainland market, its main products also rely heavily on the weight loss products, already has a number of fixed consumer groups. In this case, Amway Nutrilite fiber into music Chinese weight-loss market a little late, and has not formed own brand concept. We look back, Amway Chinese performance in 2013 continued to grow, thanks to the 2012 to November profit source water purifier in Chinese since listing brings good sales situation. But in 2014, Amway new products are concentrated in the minor products, such as the Department of new artistry, silk Ting Xihu series of products, Nutrilite Le fiber weight management products etc.. Especially the Nutrilite Le fiber weight management products, sales in North America has been doing well, so in 2014, Amway hope that through Nutrilite Le fiber weight management products bring growth to Chinese district. Early in 2013 to early 11, Amway Le fiber series of 7 kinds of diet drinks obtained health food mark approval number. According to the "regulations Chinese health food management approach", have effect reducing weight of products must have the "approval certificate" health food, also is the "blue hat". Because of the "blue hat" approval threshold high, cycle is long, costly, therefore, the general direct selling enterprises have "blue hat" direct marketing health care products is not much. "Blue hat" has thus become the most direct selling enterprises competitive weights. From product development to the 'blue hat' application, we can see that the Le fiber series products is a performance Amway key point of growth, in 2014 Amway send in slimming health product market brings big eruption. However, over the past 2014, Le fiber products but not officially listed, the reasons for this are Amway in product layout adjustment is not in place, therefore, can only say Amway in the weight loss market is still searching for a suitable road. No matter how the market, aiming to lose weight, is the strategic choice Amway, is also the inevitable result of the deepening of direct selling market competition. Behind Amway performance decline, many of the deep reason. We focus on Amway, is precisely because of this huge monster is the direct selling industry benchmark, it's every act and every move is other enterprise case study. A temporary decrease in Amway performance does not mean the enterprise entered a recession, maybe just one part of the strategic adjustment in the performance of small fluctuations on the. Anyway, Amway younger, digital and experience strategy is successful, we should innovate and reform behind the success of Amway see, it is because of Amway continue to explore new roads, only today's Amway. * (original title: behind the decline in the performance of Amway) Editor: small Shen |