Amway fosters local success stories
Amway fosters local success stories
Amway’s chairman Steve Van Andel recently made a second trip to Vietnam after six years. On this occassion, the chairman gave insight into the company’s achievements in the global and local markets.
You have been chairman of Amway since 1995. What would you say about the development of Amway over the past 20 years?
Amway has changed greatly in that time period. In 1995, we were still largely a US business with an emerging international component. The last 20 years have seen great international expansion, to the point where 90 per cent of our sales are now outside of the US. The main lesson learned from this time period is that people, no matter where they live, are largely the same. They’re looking for an opportunity to better their situation, to reach a goal and to continuously reach higher. That has been a key to our success globally. It’s the ability to offer people a chance with little risk and little investment to do something for them that improves their situation.
I’m most proud of the individual stories of success – big and small. Millions of people around the world, including many in Vietnam, work hard every single day to make their Amway business all that they hoped it could be. For some, it is earning a little extra money to advance their life in some way. For others, it may be a full-time career. No matter the goal, I’m always so proud when I hear the stories from people about how they’ve worked to improve their lives. I’m thrilled that we get to play a part in that success.
Amway has been here for seven years. How has it developed in the Vietnamese market?
I’m impressed with the rapid development of the country. The population is sizable and middle-income families seem to be increasing in number as well. Our company is still young in Vietnam, but we have a strong foundation to build upon. We believe Vietnam has great potential. Establishing our second manufacturing plant in the nation in just seven years is an outcome of that belief, and we’re excited to see what the future holds.
Moreover, in my role as chairman at Amway, I’m fortunate in that I have the opportunity to travel to many of our top markets and meet with Amway Business Owners (ABOs) who are working hard to grow their businesses. Every success story is my favourite, because it involves an ABO working hard to accomplish his or her goal. Particularly, I see the critical growth of ABOs in Vietnam.
Please elaborate on the factors behind the achievements of ABOs in Vietnam?
Entrepreneurs play an important role in growing economies. It certainly doesn’t take long to realise that the entrepreneurial spirit is alive here in Vietnam. I see it in the faces of ABOs across the nation. Their work ethic is strong and the future appears bright.
Besides continuing to launch high quality products that meet the nation’s growing demand, we also focus on education. Our efforts to provide free training to our ABOs are critical to ensure that they have the knowledge needed to be successful in the marketplace. We also work to educate the marketplace about direct selling and the benefits that it offers. Now, hundreds of Amway Vietnam employees are working every day to support 300,000 distributors here.
How do you think direct selling could benefit Vietnamese consumers?
One constant around the world is the desire to do something for one’s self – to build a better life. We’d like to think that Amway helps people do that by offering a low-cost, low-risk opportunity to start a business selling quality products. We take care of the product manufacturing and shipping, offer robust training options that are free of charge, and provide a support structure that helps people get started and grow a business. We’re proud of how our employees – 450 in Vietnam and more than 20,000 around the globe – support our millions of distributors in building their businesses every single day.
We are proud that Amway Vietnam has been growing to get the No.1 position in the local direct selling market based on the latest report by the Vietnam Competition Authority in July 2015.
What has helped a multinational company like Amway take the leading position in direct selling in a local market?
We think a big part of our success in assimilating with local customs involves our business model. Since our large distributor base is part of the very communities that we serve, we’re essentially one with the nation. In addition, local ABOs are able to give us unique insight into the demands of the marketplace. As a result, we’re able to align our product offerings with the needs of the nation. We also believe that to be part of a nation – to think and act locally – we need a base of operations here, and we have that in Vietnam through our national headquarters and our manufacturing facilities. Finally, it is so important to support the needs of a community outside of offering quality products. We need to support the greater good, and we’re able to do that in Vietnam through a variety of health and education efforts.
How about Vietnam’s position in the Amway business map?
We believe Vietnam is a market with great potential. That’s why we’ve made major investments in the nation in a short period of time. The new $25-million facility in the southern province of Binh Duong will focus on our Nutrilite brand of vitamins and dietary supplements. Nutrition products are the top selling category for Amway and we are ramping up our production in an effort to meet the growing demand. Now that we have two manufacturing facilities in the market, we also believe that there is the potential to export products made here to other nearby nations.
What is your outlook for Amway’s business here in the future?
The authorities in Vietnam, from the central to local levels, are supportive of business and consumers are eager for quality options to consider. We look forward to positive times ahead. Vietnam continues to be a focus for Amway today and in the future. As it is around the world, education is a big investment focus in Vietnam. Ensuring that we’re offering our ABOs the very best training is a core focus, as well as our efforts to educate the general public about the benefits of the direct selling business model.
Moreover, since we are part of the community, it is our duty to support the community and to help make it a better place. We’re all about offering opportunity as an organisation. For some, that involves offering them the chance to start their own business. For others, our support involves corporate social responsibility initiatives supporting health or education – items that are important to our enterprise as well – such as our Operation Smile and Library for You efforts.
We’re committed to the continued growth of Amway Vietnam and look forward to many more years of helping improve the lives of our distributors and the communities where they work and live.
