Friday, March 17, 2006

Direct selling, Amway and India

Direct selling though it is present in India for the long time has still to see a big rise. There are many companies present in India who do business through direct selling. However direct selling is not a big success so far. One of the big reasons behind its failure is non availability of any big name to trust. Many companies which are in direct selling business do not have good track record. Seven years back Amway enters India with lot of promises and few products. It tried to catch the untapped direct selling business. However up to last year they are not much successful except their nutrilite brand.

The success of nutrilite may be due to the aggressive advertisement, its good quality or better international equity. The other products of Amway have to still make a penetration in to India. Initial unsuccessful of Amway may be due to the reason; they are not able to understand the Indian market well. The other reason of their unsuccessful was entry of lot of other Indian players, whose aim was to only earn some money. Many players imitated the Amway’s market strategy. This all spoiled the Amway plans to gain ground in India. Amway only gave dream of becoming millionaire to Indians and not focused on their products.

When other schemes failed people also started doubting Amway. Due to this lot of people lost money and their frustration increased against the Amway. If they have focused more on their brands then they may have some other story. Last year with aggressive advertisement, they are able to establish their brand nutrilite. However all this is not up to mark from company like Amway. The reason for their failure is being not able to understand the Indian environment fully. Now they have changed their few of strategies and therefore an increase in their acceptance can be seen.

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