Follow us twitter facebook
Edition: Brazil
Click here to subscribe toour free weekly newsletter click here
Companies & industry

Amway eyes Brazil as major growth market

The world’s largest direct selling company is investing US$ 150 million to turn the Brazilian operation into one of its top 10 global markets.

With nearly 60 years in business and operations in 100 countries around the globe, Amway is the world’s largest direct sales and multilevel marketing company, having recorded global revenues of US$ 8.6 billion in 2017. The giant manufacturer of home care, beauty and wellbeing products landed in Brazil in the 1990s, but only recently has it started to target the country as a key market.

Rossana Sadir, managing director at Amway do Brasil

Rossana Sadir, managing director at Amway do Brasil

"Despite representing only about 1% of our global sales, Brazil was confirmed by the headquarters as a focus country for Amway’s international investment strategy,” says managing director at Amway do Brasil, Rossana Sadir. The Brazilian subsidiary is currently the company’s fastest-growing operation worldwide, with a 40% average annual growth. In 2017, revenues were estimated at US$ 300 million.

Sadir says the good performance is due to Brazil’s entrepreneurship potential. “According to the 2018 Amway Global Entrepreneurship Report, 66% of Brazilians aspire to become entrepreneurs, which shows the nation’s relevance to our business,” she says.

Brazil is the world’s sixth largest direct sales market behind the U.S., China, South Korea, Germany and Japan. With over 4 million consultants, it generated R$ 45 billion in sales last year, according to the Brazilian Association of Direct Selling Companies (ABVED). Amway alone has 200,000 consultants – or entrepreneurs, as the company refers to them – in Brazil. In addition to selling Amway’s products, they can recruit new consultants to form a team and receive a percentage of their team’s sales.

To continue its growth strategy and develop Brazil into one of its top 10 global markets in the next decade, Amway is investing US$ 150 million in infrastructure and training of its consultants. "Since 2013, we have opened stores in Curitiba, Belo Horizonte, Brasilia and Cuiabá to build brand awareness and strengthen our relationship with customers. We have also revamped our stores in Recife, São Paulo and Rio. We have recently opened new distribution centers in Jundiaí and Cuiabá, as well as creating new training programs to empower our entrepreneurs and overhauling our incentive programs to offer more rewards, trips and unique experiences,” says Sadir.

Manufacturing locally is also part of Amway’s plan to gain market share in Brazil. “Our growth strategy definitely includes increasing local production. We have already started manufacturing our top selling home care product, L.O.C. Multipurpose Cleaner, in Brazil and production is expected to reach 600,000 liters per year,” she says.

Amway’s home care range is the most popular product division in Brazil and accounts for 36% of sales followed by personal care, with 33%. Oral care line Glister is one of the highlights in this category, which also has skin care, hair care and body care products as well as fragrances and makeup.

Amway has yet another reason to turn its attention to Brazil. A global leader in sales of vitamins and diabetes prevention supplements, the multinational has the world’s largest acerola cherry farm in the city of Ubajara, northwestern Ceará. “As well as acerola cherry, which is remarkably rich in vitamin C, the farm also grows cobbler’s pegs, watercress and eclipta alba in an area that encompasses over 16.5 million m². That’s where we source raw materials that are used in Nutrilite’s products sold around the world,” Sadir concludes.

Renata Martins

Portfolio

© 2018 - Brazil Beauty News - www.brazilbeautynews.com

latest news
Focus
Luxe Pack prepares for its second Los Angeles edition and announces new venue in New York

Luxe Pack prepares for its second Los Angeles edition and announces new venue in New York

Luxe Pack, the business to business tradeshow dedicated to luxury packaging, will return to the West Coast for its second Los Angeles edition on February 27-28, 2019. As per last year, the event will be co-hosted with MakeUp in Los Angeles, B2B show for beauty and skin care accessories, trends, and formulation. Luxe Pack Los (...)

read more
Experts’ views
Is Brazil the new Korea for hair?

Emmanuelle Bassmann
Is Brazil the new Korea for hair?

International Beauty Fair, South America’s largest trade beauty show, took place on September 08-11, 2018 in Sao Paolo, Brazil. Here is a short overview on the main trends that emerged during the event. Brazil has always been renowned for being innovative in the beauty sector. Historically, the beauty industry in Brazil accelerates (...)

read more

Features