Calcutta: Direct selling firm Amway envisages a higher contribution of online sales to its business mix in India as it looks to invest and consolidate its presence in the country.
The company has earmarked an investment of Rs 100 crore over the next 2-3 years to expand its business to Rs 6,000 crore by 2025 from around Rs 1,800 crore last fiscal. The additional investment will be spread across research and development, manufacturing and digital initiatives.
"The consumer preference is going online. We have got 35 per cent of our sales from our captive website. We have to enhance the experience of our distributors as well as consumers on our own website and investment will be going in to enhance that experience. We are also looking at mobile phones as a key engagement platform," Anshu Budhraja, CEO of Amway India, told The Telegraph on the occasion of completing 20 years of business in India.
Of the Rs 100 crore investment, around Rs 20-30 crore has been set aside for digital initiatives. "Over a period of time, I do not see a mix which is less than 50:50 of the enhanced business scale," said Budhraja.
Amway, which began operations through direct selling agents, has expanded into retail outlets and online platform as part of its omni-channel business strategy. The company has more than 55 experience stores across India and plans to add 25 more express pick-and-pay stores in 2018.
It has over 5.5 lakh direct sellers in India. The company is also looking to expand into herbal products in the beauty and personal care category as well as consumer durables such as air purifiers.
The company remains optimistic about the growth prospects of direct selling in India. "The direct selling FMCG industry is expected to touch Rs 65,000 crore by 2025, clocking an almost six-fold growth, providing employment to more than 18 million people of whom 50 per cent are women," said Budhraja.
Guideline adoption
According to Budhraja, adoption of direct selling guidelines by states will compliment the growth prospects of the industry. In 2016, the consumer affairs ministry had announced the guidelines governing the principles and responsibilities of direct selling firms and their obligations to the consumers.





