ADA, MICH., USA (Feb. 8, 2017) – Amway today announced sales of $8.8 billion USD for the year ending Dec. 31, 2016, a decline of 7 percent when compared to 2015 figures. The direct seller increased sales in seven of its top 10 markets, but experienced softening market conditions in China.
“Across the world, Amway did well in 2016,” said Amway Chairman Steve Van Andel. “We experienced sales growth in several top markets, saw double-digit percentage growth in nine additional markets, and continued to evolve the business in China as we seek to take advantage of shifting market conditions and achieve the market’s long-term growth potential.
“Above all, we are pleased to see the continued and growing relevance of the direct selling model in today’s marketplace as people place real value on personal recommendations, and technology enables our distributors to connect with customers at any place at any time.”
Joecool's commentary: Amway's 7% decline follows two previous years of double digit declines. At it's peak, Amway had revenues of 11.8 billion and has been in a downward spiral since. While the Amway corporation tries to put positive spin on this, it signals to me that Amway is reaching a point where they cannot prevent the inevitable.
During Amway's years of "strong" growth, it appears to have been done in foreign and new territories. But once these other countries start to figure out what the US already has, it's expected that sales will eventually decline. I believe Amway's products are generally overpriced and not competitive but IBOs seeking to "go diamond" typically won't mind shelling out cash for products when they think Amway will make them wealthy. When the dream fades, so goes the desire for Amway's products.
I believe Herbalife is starting to see a similar decline as their China market saw a decline this past quarter.
It will be interesting to see what happens going forward. I can't say I'll be sad to see a "legal" product pyramid whose "leaders" have scammed tens of millions of people over the years start to see serious decline to a point where their "diamond lifestyles" take a serious hit. I wonder what the diamonds are saying these days now that the corporation is seeing serious declines?