Amway’s business model is recruiting independent business operators to personally market the company’s health, nutrition, beauty and home-care products to consumers.
In 1995, they expanded into China and rapidly grew to $200 million in 3 years. The government banned direct sales, as they were concerned about scams. Citing political unrest, they required physical stores – which was not a part of the Amway business model. However, once built, the business owners loved the physical stores, as they could show entire line of products in person. The stores provided credibility. China is the company’s largest market, representing $4+ Billion of Amway’s $11.8 Billion in annual revenue.
After changing their strategy for China with brick & mortar stores, and then seeing the success…Amway decided to take the “experiential store” lesson around the world. They now have over 1,000 stores globally.
What business strategy changes can you implement from global experience?
