Earmarks Rs 30 crore for strengthening the supply chain and automation as part of its HD strategy
Amritsar, NFAPost: Amway India, one of the country’s leading FMCG direct selling companies, is focusing on bolstering it’s home delivery (HD) and logistics network to support the surge in online orders.
As a part of Amway’s 10-year growth vision, focused on unleashing the power of entrepreneurship coupled with the emerging trend of social commerce, the global direct selling giant had begun integrating offline-to-online (O2O), earlier this year, to drive targeted results.
Online sales
The company has witnessed a significant shift to online sales, from 33.6% in Feb 2020 to over 70% today. Amway expects the trend to continue and foresees the online orders to reach over 5-6 lakhs per month by the end of this year.
Commenting on Amway’s home delivery strategy, Amway India CEO Anshu Budhraja said in the last few months, the company has witnessed a rapid shift in consumer behavior, especially in retail, with people increasingly migrating to online platforms for shopping.
“Amway too has observed a similar trend. As web sales doubled, there has been a significant upward shift in the home delivery orders, and we expect this trend to continue. To ensure seamless shopping experience and smooth last-mile delivery of orders, we are working towards strengthening our supply chain and logistics. We will be investing INR 30 crore to enhance the home delivery experience by adding warehouse space, manpower, new logistics partners, automation in warehouses, and other back-end processes,” said Amway India CEO Anshu Budhraja.
As the company move forward, Amway India CEO Anshu Budhraja said both offline and online platforms will form a key component of Amway India’s future strategy with a tremendous focus online, guided by consumer trends and behavior.
Consumer demand
Talking about the growing online orders and its significance, Amway India Global Omni Channel Logistics Vice President – Sanjeev Suri said currently they are doing over 2.8 lakh home deliveries, which is roughly 70%-80% of our total sales, from 1 lakh home deliveries before March, accounting to 40% of our total sales count.
“This reflects a new world order where consumers demand everything at the click of a button. The trend is especially relevant with the Indian consumers’ embracing e-commerce, which is expected to grow 27% to reach $99 billion by 2024, as per the latest report ‘Global Internet: e-commerce’s steepening curve’ by Goldman Sachs. To address this evolving trend, we are also planning to launch same-day delivery and online return services by the early next year, in Q1, to enhance the post-purchase experience,” said Amway India Global Omni Channel Logistics Vice President – Sanjeev Suri.
To accommodate the evolving supply chain scenario, Amway India is working towards a robust supply chain and home delivery strategy. In line with this, Amway is building an independent last-mile delivery model under clearly structured multi-vendor national alliances.
Currently, Amway is working with a combination of 18 local and national delivery partners and plans to strengthen this network by adding some leading national logistic partners by the end of 2020. The company is now servicing 8,000 pin codes and aims to scale up to reach 15,000 pin codes by adding more national players and leveraging their network. Amway is also looking to add 40% additional third-party manpower across India to support and fulfill the online demand.
The increasing dependence on technology has paved the way for continued digital transformation at every level of Amway India’s operation. With the recent launch of multiple digital and social tools, Amway India aims to make it 10 times easier for the Amway direct sellers to seamlessly embrace online to buy and sell products and build their business.
India expansion
Amway India is a wholly owned subsidiary of Amway with headquarters located in Ada, Michigan, USA. Amway is the world’s number one direct selling company with presence in over 100 countries & territories.
Globally, Amway is 60 years old, $ 8.4 billion, manufacturer and direct seller of quality consumer goods. Amway’s innovation and industry-leading R&D has seen more than 750 patents granted and another 220 patents pending. Amway has more than 500 scientists, engineers, and technical professionals who extend our innovation and science capabilities through 11 locations to deliver global, regional, and local product research and development.
Amway India sells more than 140 daily use products across categories like Nutrition, Beauty, Personal Care, Home Care and Consumer durables through Amway Direct Retails and Direst Sellers who make personal recommendations regarding the use of distinctive quality products. Amway products are widely recognized and appreciated for their quality and value. These products are backed by a money-back guarantee for 100% satisfaction of use[2].
Amway products are popular not just in India but across the world. Nutrilite is the world’s No. 1 selling vitamins and dietary supplements brand. Nutrilite has established itself as a leading brand in the vitamins and dietary supplements category in India as well. Artistry is India’s No. 1 premium skincare brand. Amway India also offers ‘Attitude’, an entry-level premium skincare and cosmetics brand targeted at India youth. The product range has been developed taking the needs of Indian consumers into consideration.
