Local Amway unit's sales grow by 14%

"This is such a significant achievement given the bleak economic situation throughout the year. The successful performance was due to a drive to expand the number of members and sales representatives significantly," said Kittawat Ritteerawee, general manager for business relations and marketing.

The result was in line with that of the parent company, Alticor, which announced record sales of more than US$8.2 billion (Bt290 billion) last year, up 15 per cent from 2007.

Two-thirds of the company's 58 affiliates recorded sales increases last year, including strong growth in China, Russia and India.

Kittawat attributed Thailand's success partly to a company decision last July to reduce the annual membership fee from Bt350 to Bt100, making it more affordable to join the Amway network.

"The number of members increased 60 per cent to 700,000 last year, 60 per cent of whom are active members," said Kittawat.

The next target is reaching 1 million members this year, with sales growth forecast at 7 per cent.

Amway (Thailand) suffered in the wake of the 1997 financial crisis.

Managing director Preecha Prakobkit said company sales dropped almost 10 per cent in both 1998 and 1999, finally resuming growth of 7 per cent in 2007.

Preecha said to fight against rising inflation, Amway has increased the level of its Profitability Index about 10 per cent each of the past three years.

Each sales representative has needed to make a greater effort to achieve the new benchmark, which was adjusted yearly, in order to maintain income and compensation.

This programme, dubbed "Open Secret", has been extended for another three years.

The Thai Direct Selling Association said the overall direct-sales industry posted 7-per-cent growth last year and should grow 5-7 per cent this year.

Preecha said Amway now enjoyed a 25-per-cent share of the direct-sales market in the country.

"We are well prepared and have set our business plan to cope with the coming impact of the economic downturn. So far, we've not been affect by the crisis; on the contrary, we've grown stronger," he said.

Marketing director Ratana Channara said the company this year would spend Bt200 million on its business facilities, including opening three new Amway shops and installing a new information-technology system.

She said another Bt750 million would go for advertising, public relations and promotional activities.