Amway stands for- FAMILY,HOPE,FREEDOM AND REWARD
DEAR WILLIAM S PICKNEY
1. I would like to bring to your notice the
falling turnover trend of Amway Business in India which has fallen from 2388 Crore
in FY 12-13 up to December 2012 to 1900 crore in FY 13-14 up to December,2013.
I along with host of Amway Distributors across the nation must be worried as to
what is happening with Amway India these years especially in view of the fact
that even during the worst days of recession, company made robust growth. The
company’s top brass here in India as well as in HQ at Ada must be worried about
this. We have chosen this business as career and therefore it is startling and agonizing
for me as well to see this downward trend happening. Last fiscal also when the
company had set the target turnover to 2500 crore, we could not achieve it and
could finish at 2388 crore only.
2. Over a decade I had been analyzing the facts
and figures related to Amway India and if I remember correctly, never before
this, the Amway’s turnover has witnessed such huge downslide trend. Everyone
including me is worried and anxious to know as to why is this happening and
what has gone wrong with the Company. We tend to guess that perhaps Kerala
episode may be one reason. But it is hard to believe that this may the only
reason because with the issuance of statements by the concerned ministry at
centre, things became amply clear. As a matter of fact we never encountered any
problem while showing sale & marketing plans to the prospects. I personally
believe that majority of the people outside Amwayites world never knew what had
happened in Kerala. I had gone through
two very good books on Amway last couple of months. One is “Promise to keep” by Charles Paul Con and other one is ‘Amway forever’ by Catherine A
Jones. These books have nicely depicted company’s ups and downs in terms of
business challenges across the globe. In fact, it mentions that there are three
phases in the life of any corporation around the world. One is ‘discovery phase’,
2nd is the ‘downslide phase’ and last one is ‘balanced phase’. It
says that when any company, in this case Amway, enters any country, people take
it very positively because there is nothing negative to discuss. But after a
decade or so when company makes its presence felt, some people, especially
those who fail, talk negative about the company. This is downslide phase. But
the book says, the turnover goes up in this phase also. Downslide phase is
termed due to its negative image amongst few or many people in that country. India,
according to this analysis, might be passing through this phase but
surprisingly the turnover should have not gone down. This is a downslide phase
with difference.
3. Recently, company has made certain
changes in terms of joining, renewal, bonus structures rules etc. Firstly,
renewal fees were set flat to 480 Rs irrespective month of joining. This
resulted in large steep fall in number of joining in the month of August,
because large number of people feel that why should he/she pay 480 Rs in
September even if they join in the month of August so better to join in
September instead of August. I am sure if there is any statistics with the
company they can throw it in the amwayite’s domain that what % fall the company
has been witnessing in the month of August after the introduction of this new
rule.
4. From February, 2014, another new rule
related to joining came into being. Now you have to submit cancelled cheque,
photocopy of banks account in case the cheque does not bear accounts holders
name, ID and address proof at the time of joining itself. Even on web joining
one has to upload these documents and wait for some time/hrs because in the
back end, these documents have to be ‘so called verified’, I have been told, by
other third party. This technical glitch has hindered the earlier smooth
process of joining resulting therein huge and steep fall in number of joining across
the nation. The company must throw the data also amongst us so that we can also
analyze the downward trend of joining in our respective groups. If web joining
is done in the evening or night, the distributor has to wait for the next day
for getting his order processed because this third party would approve the
uploaded documents only on the next day. It seems that the rule is made not to
facilitate the process but to stalemate or hinder it.
5. One rule related to 10% discount
directly going to distributors account is widely appreciated and I also
appreciate this move. This has helped in curbing, to a large extent, the shop
selling practice by many/some ABOs.
6. Coming to office and state specific
problems, I have sent innumerable emails to officials at Patna PUC as well as
Kolkata regional development officers like Mr Chandra Chakravorty, Arindam
Banerjee, Alok deep, GS Cheema, Sudipto, Bikash kumar and host of others
regarding malfunctioning of PUC at Patna and other ATPs in Gaya, Bhagalpur,
Muzaffarpur. I don’t want to repeat or rewrite them for the sake of time. Just
by going into these offices one cannot get the flavor of MNCs work culture or
ambience. It seems that perhaps Amway in Bihar has been nationalized and
offices are being run by ‘government babus’. One can taste the flavor of redtapism which has surprisingly
disappeared from government offices also, thanks to new era of liberalization.
In amway forever book, the
writer writes, if I remember correctly, that in China there are as many as 139
ADCs in 137 cities. In fact this was one of the Chinese government’s
instructions also that Amway has to open outlets so that people many touch and
feel the products. But here in Bihar there is only one touch and feel PUC where
also one can hardly touch products and services, thanks to rude, unfriendly,
undemocratic, unpolished, lack of etiquettes, non professional behavior of most
of the staffs barring a few. Most of the staffs sitting on the desk are more
interested in refusing and rejecting the documents rather than helping them
understand and making them through. Security personnel’s presence in large
number gives impression that whether this is a business venture or intelligence
and security establishments. These issues are not unheard, unnoticed and
unreported to the Amway officials both in Patna and Kolkata. But this is
disgusting to say that nothing remarkable in terms of improvement could be
done. This is perhaps why the turnover in Bihar is meager as compare to south.
We are still to find a good ADC or Brand experience centre in Patna and some
more PUCs in other cities of Bihar.
7. Coming to national scenario, the direct
selling industries in India is expected to reach Rs 34,000 crore in 2019-20
where as Amway’s turnover which was projected in Melbourne ALS by none other
than William. S. Pickney to 5,000 crore will grow up to 3000 crore by 2020
according to Picney who has been quoted by the Times of India, Kokata dated 13th
Feb, 2014. Is it reversal or revision of goal or strategic retreat? In fact in
morning when I came across this news, I got panicked and perturbed. My career
is at stake because as I said that I have chosen this business as career.
8. According to PHD report total number of
distributors in direct selling business is about 60 lacs in India in 2012-13
out of which Amway’s share is hardly 6 lacs whereas this is the biggest direct
selling company. Sometimes it seems and it is true also that people at large
don’t have problem or negativity from Amway products, they are actually
frustrated with the system it runs. Quitters are vociferous in negative
propaganda. In fact John A Catherine in Amway forever book has mentioned it
very nicely. Does it not sound not good that every year large number of ABOs
quit due to this flat renewal fees rule and other unnecessary formalities. As a
lay man, we feel that every company should expand its consumer base therefore
how one can afford to let them off? Amway must re think over it.
9. Some suggestions- (a) kindly do away
with some cumbersome rules and facilitate the process of joining.
(b) Remove renewal fees and replace with
some other criterion like doing 50 pv mandatorily in month of Sept-Oct to get
ABOs renewed.
(c) Increase the number of pick up centers across
the nation and in Bihar also. Make the ambience ABOs friendly and not staff
friendly only.
(d) Retrieve similar suggestions from
ABOs. Although similar exercise were made by Amway in which on line suggestions
and feedbacks were asked, but it seems it is more a rhetoric that a serious
exercise. Make it fruitful and useful.
(e) Expand the distribution networks to
ensure that rural areas also come under delivery zone. It is very important for
Amway to reach out to rural areas to keep growth moving upward.
(f) Number of products which could cater
to the needs of rural people with moderate income should also be introduced.
Needless to say that Amway needs face
lift and revamping so that we grow and fulfill our dreams. The principle of
Hope, Family, Freedom and Reward is still inculcated to our hearts, let it be
intact
Thanks
Sincerely
Sarita Yadav ,Patna
