Amway India eyes masses to shore up top line
The new line, labelled 'Great Value Products', is priced 20-30% lower than the existing range. It includes categories like coconut oil, hair oil & shaving cream.
By Purva Bhatia, TNN |
NEW DELHI: Faced with the challenge of slowing growth and the threat of legal trouble to its business in Andhra Pradesh, Amway India, the wholly-owned subsidiary of the US-based direct seller Amway Corporation, is looking to reverse its fortune with the launch of a range of low-priced fast moving consumer goods (FMCG) products aimed at tier II & III cities.
The new line, labelled ���Great Value Products���, is priced 20-30% lower than Amway���s existing range, and includes mass-market categories like coconut oil, hair oil, shaving cream, disposable razors, toothbrushes et al. Though the Rs 800crore Amway India claims it has grown by around 10% in 2007, industry sources say the growth may be closer to 5%.
���We have realised that the Indian consumer is still a value-for-money person but at the same time is conscious of buying quality products. It, therefore, makes sense for us to be available in both categories (premium and mass),��� said Amway India MD & CEO William Pinckney. The company claims to have over 4.5 lakh direct sellers across the country.
The new line, labelled ���Great Value Products���, is priced 20-30% lower than Amway���s existing range, and includes mass-market categories like coconut oil, hair oil, shaving cream, disposable razors, toothbrushes et al. Though the Rs 800crore Amway India claims it has grown by around 10% in 2007, industry sources say the growth may be closer to 5%.
���We have realised that the Indian consumer is still a value-for-money person but at the same time is conscious of buying quality products. It, therefore, makes sense for us to be available in both categories (premium and mass),��� said Amway India MD & CEO William Pinckney. The company claims to have over 4.5 lakh direct sellers across the country.
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