Amway History

The beginnings of Amway

Rich & Jay 1940 -2016
Amway Founders Richard M Devos & Jay van Andel
 Friendship.
• Amway’s story began with the friendship
between two youths who would become the
founders.
• Became Jay Van Andel, born in 1924, and Richard
M. DeVos, born in the small nearby community of
Ada in 1926
• Friends at Christian High School in Grand Rapids.
Their common Dutch heritage of hard work,
thrift, and entrepreneurship drew them together.
Rich devos age 2 Students (1940)
in 1928
1940…students Rich age 16,Jay age 14
In high school after DeVos offered
to pay him 25 cents a week for a
ride to school. After a two-year
stretch in the US Air Force

1944 they joined again

Rich Devos In Army
 Jay Van Andel and Rich DeVos,
friends since school days, had been
business partners in various
endeavors including a hamburger
stand, air charter service, and a
sailing business.
1940s..
• Then a hamburger joint
called Riverside Drive-Inn.

• They start Toy business

 Sailing..
• Rich & Jay Van Andel that
began in December 1948
and ended in March 1949
on a shoal off the north
coast of Cuba.
• They were rescued by an
ocean liner and taken to
San Juan, Puerto Rico,
and spent the next five
months traveling through
South America and the
Caribbean.(308 ft boat)
 Founding..

• In 1949 they were ( Re-Jay Corp)introduced by Neil

Maaskant (Van Andel's second cousin) to
the Nutrilite Products Corporation.
• Nutrilite was a California-based direct sales company
founded by Dr. Carl Rehnborg,

• World First Direct selling Company

 Nutrilite

• Carl F. Rehnborg created the first

multi-vitamin in the 1930s.
• His time in China between 1917
and 1927 or so exposed him to
experiences in which he realized
the role vitamins and nutrients
impacted general health.
• He began selling his vitamins as
the California Vitamin company
and renamed it in 1939 to
Nutrilite.
• In 1945, he invented the Direct
selling system to distribute his
vitamins.
1951 Rich Devos
marriage 1953 Jay van Andel
marriage
 Nutrilite Closed
• 1959 Rich & Jay No.1 Distributors in Nutrilite
• They have 2000+ Full time ibo’s under their
org….
• Unavoidable situation Nutrilite was closed
1959
What next?
 Frisk - the first product
• Their first product was
called Frisk, a
concentrated organic
cleaner developed by a
scientist in Ohio.
•
• 1963 DeVos and Van Andel
bought the rights to
manufacture and
distribute Frisk, and later
changed the name to LOC
(Liquid Organic Cleaner)
 The American Way Association
Founded
• Rich & Jay organization which had more than 2000
distributors as members.

• In 1959, Nov-9th DeVos and Van Andel had

formed The American Way Association.. For
protect the independent distributors.

• Now they joined again under their Sponsor Neil

Maaskant (No LOS change)
Rich & Jay
 1st Year success

• First year company Revenue

$0.50 million( Rs.3 Cr/2016)
• No add
• No store
 S-A-8 is launched

• In 1960, Jay and Rich purchased a 50% share

in a Detroit, Michigan company (Atco) which
manufactured a small number of products for
them. One became a long-time favorite; S-A-8.
 International expansion
• Amway expanded into Canada in 1962.
Australia became its first overseas market in
1971.
• Now company name was changed to “Amway”
 Nutrilite
1934

Amway bought a controlling interest in the

company in 1972, and took over complete
ownership in 1994.
Diversification and acquisitions 1972
the company purchased Nutrilite
Products, Inc.,
 Nutrilite President
• Sam Rehnborg, Ph.D.
• President ( again)
Nutrilite Health Institute
• Dr. Sam is the son of Nutrilite founder, Carl F.
Rehnborg, the man who developed our first
multivitamin/multimineral product back in
1934.
• 1972 : 11% share
FTC investigation
• “pyramid-like distribution
system" of the Amway
business model led to
Amway being accused of
being a pyramid
scheme. A 1979 US
Federal Trade Commission
ruling established that the
Amway business model is
not illegal in the United
States
• Total expense for this case
Rs.175 Crore (INR)
 Achievement
• Since 1959, Amway has paid out over $53
billion in bonuses and incentives to its IBOs
worldwide /2015FY
• more than any other direct selling company in
history.
• $53 Billion= INR 3,25,000 cr (aprox)
• BBB Accreditation – A+
• A BBB Accredited Business since 01/10/1999
• BBB has determined that Amway Canada
Corporation meets BBB accreditation
standards, which include a commitment to
make a good faith effort to resolve any
consumer complaints. - See more at:
http://www.bbb.org/kitchener/business-reviews/multi-level-
selling-companies/amway-corporation-in-london-on-
19357#sthash.bM9rFT6S.dpuf
D&B Rating…
 Rich Devos
• Forbes magazine listed
him as the 60th
wealthiest person in the
United States
• The 205th richest in the
world, with an estimated
net worth of $5 billion.
• He was one of the top 10
wealthiest Americans
 Jay van Andel
• He also served as
Chairman of the U.S.
Chamber of
Commerce from
1979 to 1980 and
later as a member of
its Senior Council
from 1980 to 1985.
 Burned
• In July 1969 Amway’s aerosol manufacturing plant burned completely to
the ground. Losses were estimated at $700,000. The next day plans were
made for a temporary substitute supplier and a new facility. Six months
later the new facility was completed and the company moved in.
NEW HEADQUARTERS
ADA, Michigan
 Asset:
Our world headquarters located in Ada,
Michigan, USA, stretches one mile from east
to west and is comprised of 80 buildings and
3.5 million square feet of office and
manufacturing space. More than 4,000 of our
21,000 global employee family work in Ada,
the same small town where Amway began
over 50 years ago.
 Next Gen: THE KIDS TAKE OVER
• AMWAY COFOUNDER RICH DeVOS ANNOUNCES RETIREMENT-1993
• Amway co-CEOs Steve Van Andel, Doug DeVos

• NAME: Steve Van Andel, co-CEO, Amway Global.

AGE: 54, oldest son of Amway co-founder Jay Van Andel.
• EXPERIENCE: Chairman of the company since 1995, succeeded his father, Jay Van Andel, who
co-founded Amway. Joined Amway in 1980, and has held various positions including vice
president of the Americas and marketing, new product development and corporate affairs.

• NAME: Doug DeVos, co-CEO, Amway Global.

• AGE: 45, youngest son of Amway co-founder Rich DeVos.
• EXPERIENCE: President of Amway since 2002. Also worked for Amway in Belgium and Great
Britain, served as regional sales manager in North America, vice president for North
American sales, senior vice president and managing director for North America and Latin
America, senior vice president for the Asian and Pacific Ocean region, Amway vice president
for distributor relations.
Doug DeVos &Steve Van Andel
CEO/CFO
Steve Van Andel ..
(Son of Jay van Andel) Doug DeVos, Chariman
U.S. Chamber of World Federation of
Commerce 2001-2002 Direct Selling Associations
 Leadership of New CEO/CFO

• It has grown
exponentially and
shows no signs of
slowing down.
 Amway
Grand Plaza
Hotel
• The hotel was rated as one of the top ten
hotels in the US.
Amway Grand
Plaza Hotel
 Peter Island
• A luxury resort and hotel complex on Peter
Island in the British Virgin Islands was
purchased in 1978, another amenity used to
motivate Amway distributors.
• Peter Island is a 720 hectare private island
Peter Island
BOAT / YACHT
AMWAY HANGAR
AMWAY PRIVATE JET
Amway Center, Orlando
Orlando magic
Transport/ Mega Trucks
Amway Brands
Artistry is among the world's top five, largest
selling, premium skincare brands
XS
Amway Home tech
best weight management products
Body key
 Amway’s ATMOSPHERE

• Amway’s
ATMOSPHERE
brand of
premium
home air
treatment
systems is
No. 1 in the
world
 Amway-ATMOSPHERE
• About ATMOSPHERE
The ATMOSPHERE™ Air Treatment System,
exclusively from Amway, utilizes state of the
art technology to provide users with best in
class performance, purifying the air with
efficiency and convenience. ATMOSPHERE is
the world's number one selling brand of
residential air treatment systems
Amway-ATMOSPHERE
The eSpring™ Water Treatment System from Amway is now the
world's number-one selling brand of home water treatment systems
Advisory Board/Policy board
Again 2013…June 18thU.S. Chamber Board Elects
Steve Van Andel Chairman
60 min Mr.Mike wallace
Direct Selling News has listed Amway as #1 on their annual
list of top direct selling companies in the world,
 China story
• 1998, when the Chinese government banned
direct selling because of concerns it would spawn
illegal activity.
• China introduced new direct selling laws in
December 2005, and in December 2006 Amway
was the first companies to receive a license to
resume direct sales.
• China was Amway's largest market, reporting
28% growth and sales of ¥17 billion (US$2.5
billion) (Now US$.4 Billion/2015FY)
 Amway India
• 1994 Aug 26 FIPB clearance
• 1995 Mar 25th starts in India (officially)
• 3 years market study
• Amway India commenced commercial
operations on May 5, 1998
Amway's plant in Tamil Nadu to be
operational by 2015
 Amway India 1998-2016

• 1998: 2016:
• 5 offices 142 offices
• 6 Products 130+ Products
• Physical order only Web/online
• 613 Silvers 7500 Sp& Up
• 61 emeralds 700+ Emeralds
• 2 Diamonds 160 diamonds
"Direct Selling; Unshackling the Potential"
 Direct selling

• US$ 178Billion industry

• INR 10,00,000,000,00,00 (Rs.10 L Cr)
• 2016 Indian DS Industry Sale Rs.7000 Cr
• Japan Rs.2L Cr/10 cr population
• Mexico Rs.1.5 L Cr/2 cr Population
• India Rs.6000 Cr/120Cr Population (!)

• Future ?
 Amway Global
2015 FY
• 51554 New Pins
• 7855 New Platinum
• 865 New emeralds
• 314 New Diamonds

• 23139 ALS Qualifiers

Patents and Counting
Scientists & Patents…
Amway Scientific Excellence- Facts
Amway recently added 7 new locations to expand its
manufacturing capacity
Amway opened the Amway Botanical
Research Center in Wuxi, China
Botanical Research center, China
Amway Invest US$.335 million/Rs.2000 Cr in India
E-learning (smartphone)
 HBS's Recognition # Rich devos

#World No 1 business school "Harvard university

(IIM-A 's global rank# 24)
See you at
Go Founders Council