Amway has cause for celebration; its Township Strategy is yielding positive results (thereby empowering people at grassroots) and for the first time has grossed US$1 billion in sales worldwide

Amway Southern Africa’s foray into the lower end of the market – the Living Standards Measure 4-6 segment – is paying promising dividends, according to Makhaya Manie, its Manager for Corporate Affairs.

“We are buoyed by this experience in view of the fact that people are responding well to our message, which is encouraging, really,” he stated.

“The Amway Township Strategy has led to a sway in business, as witnessed during our road shows to Kwa-Mashu, Gugulethu, Khayelitsha, Soweto, Soshanguve and Marabastad. Subsequently, there has been overwhelming feedback in those new markets.”

This has led to a flurry of activities at Amway facilities, with sales and visits going up substantially.

The Amway Township Strategy 2010 has a three-year life span, after which it will be reviewed.

“So far the pilot project has shown encouraging signs,” nodded a confident Manie.

Following implementation of Amway’s Township Strategy, two fully fledged mobile centres opened in Soweto, followed by another in Tembisa. There has been activity in most of those areas, with the exception of Gugulethu in the Western Cape.

“Going by the results of a national survey conducted recently, entrepreneurial zeal is still a challenge in the Western Cape, but much of that thrives up north. In essence, that is the foundation upon which we base decisions on where to open mobile centres,” Manie explained.

As for Amway’s expansion into the rest of Africa, that will have to take a back seat for now, as the company presently concentrates its operations in southern Africa – Namibia, Botswana and South Africa.

“The strategy is one that hinges on growing a majority black clientele base; for this reason; we have senior Amway leaders stationed in Namibia and Botswana. They are doing quite well there, making the Amway story a remarkable one,” Manie exhorted.

Recession-proof

In spite of the widening debt crisis in the eurozone, Amway’s tested business concept has shown resilience worldwide.

“Direct marketing is an industry that is insulated against recession, simply because it is a business that doesn’t need a lot of overheads. It is the last resort, if you like, when the chips are down,” Manie retorted.

To the uninitiated, therefore, is the Amway concept a business or job opportunity? “It’s a combination of both,” he replied. “It’s self-employment, which entails running your own business (creating a job for yourself), generating income at your own pace, and being dependent largely on your passion.

“It is a stress-free business operation, hence there are between four to five million distributors of Amway products worldwide, with 80 000 of those in southern Africa.

“Its flexibility suits a lot of people’s lifestyles, as it allows you to undertake the business on a part-time basis if you so wish,” Manie emphasised.

Amway prides itself on a unique concept that deals in its own offering of homegrown manufactured products.

“Our business focuses on helping people to become better business leaders, gain skills and a better lifestyle, build families and bring rewards to others. The Amway concept has stood the test of time since 1959,” says Manie.

“Passion is a key ingredient to success in Amway. It offers an outlet for a person to improve their life and the lives of others.”

The Amway business concept is structured so that anyone can potentially rise to “executive diamond”, the highest rank in the company’s business opportunity hierarchy.

Products determine the success of distributors in the direct marketing sphere. To make it easier for business owners to access more products, and for questions of affordability, Amway responded to market dynamics by reducing the size of select products. This range includes home care, personal care, health and wellness and cleaning products in addition to jewellery, which Amway is marketing in partnership with reputable retailers.

“At the end of the day, drive and passion determine your profitability. Distributors get an introductory pack, consisting of information material, personal and commercial packs. This is the start you need. It could set you on a path to financial freedom,” explained Manie.

Startup capital

In a bid to meet the expectations of the LSM 4-6 market, the Amway start-up kit costs R352, down from R1 000. In keeping with the limitations of this demographic, it markets to this group mostly through word of mouth, in addition to hosting imbizos and opportunity meetings.

Another avenue helping Amway market its products is its corporate social investment (CSI) outreach. The company has partnered with the Department of Education to supply portable desks to vulnerable schools, particularly useful for rural children who receive tuition under the shade of a tree. Amway is undertaking this task in conjunction with a non-governmental organisation, Lapdesk South Africa, and so far 1 000 portable desks have been donated.

Amway has extended its CSI outreach to Zambia where, in partnership with the Christian Alliance for Children in Zambia, it is running a shelter for kids orphaned by HIV/Aids and those abandoned by parents who are in the latter stages of the illness.

Amway Southern Africa has 80 000 business owners across all demographics. “We are not just about money, but core values, personal wealth, integrity, an ethical ethos and the freedom to do business in this way and improve people’s lives.

“Our amazing story as Amway can best be summed up in four simple points: opportunities that empower, brands that delight, relationships that endure, and global citizenship that is purposeful,” echoed Manie.

David Mwanambuyu