DIRECT STRATEGY © RECESSION MAKES DIRECT SELLING MARKET AVIABLE BUSINESS OPPORTUNITY 3Stop, look, grow “4 Continued from page 1 ‘The Baddi plant manufactures 80% of Amway's products in India, while the remaining is made at six contract manufacturing facilities For the time being, Amway wil throw its brand-building muscle behind the ‘Nutrliteand Areestry brands in india. ‘Traditionally, direct _ selling ‘companies do not use advertising in aa big way; but Amway, a strong be- liever in brand building, has put ‘aside Rs 16 crore this year (up from R512 crore in 2008) for communica- ‘brand awareness so. that, the distributor's job is made easier” says Pinckney. “The television campaign that we started last year will run sil2010." Pinckney adds, “We will not do Amway India is a wholly-owned subsidiary of 8.2-bn Amway The Amway Coporaon ia Michigan, U8 way... Ditreconeda sales tumor of vers 1,126 coin 2008 > tionmusce. Andits distribution mus- cle is awesome—on its roll in India are 45 lakh ofthe approximately 15, lakh distributors or business owners as Amway calls them. ‘While ithas made steady over the years, Amway would like to see the regulatory environment to “The purpose of our advertising isto build corporate brand awareness $0 thatthe distributor's job is made easier” WILLIAMSPINCKNEY peor aaa ‘ease out forthe industry to realise its {ruepotential. The company has been lobbying with othersincluding the In dian Direct Selling Association (DSA) formore protective consumer egisla- tion that wilalso ensure the industry does not get a bad name, > Established in 1995, Amway India started commercial ‘operations in May 1998. tis headquartered in New Debt 1 Amway hasinvestedin excess ofS35 milion (Rs 151 core) Jn india; ofthis $6 milion (Rs 26 ror) sin the form of FDL ‘Amway India has 400 full time employees and has _generatedingiec employmentfor1,650personsatalthe contact manufacurelocations Direct seling companies such as Skybiz, Goldquest and QuestNet have had numerous run-ins with the police for not giving their agents the commissions promised or taking advances without giving the requisite stock. There. are instances of companies that have simply changed their names and moved to another cities to restart theirbusineses. In the meantime, IDSA continues topuruethe Department ofladusrial Policy and Promotion under the Min- istry of Commerce to passa separate Jaw to regulate direct sales. David Stanley, chairman of IDSA, says, “Many direct seling companies inthe US and Europe that are waiting t0 ‘come to India would ike tose laws regulating schemes andlaws protect ‘ng consumer interest. Regulatory issues aside, Amway seesthe diet slingmatkel opening ‘up a8 consumers start to see the difference between direct selling and door o-door sales, and that be- tweenthelonghaulersand the l-by- night operators. i