Amway’s strong foundation for long-term growth

Amway president Doug DeVos (pictured right) and Amway Vietnam country director How Kam Chiong shake hands on opening a new representative office in the capital to further the firm’s impressive growth in the Vietnamese market.

On this occasion, Amway president Doug DeVos talks with VIR’s Linh Mai about the market’s huge potential.

How does Amway Vietnam compare to other Amway markets globally? Are you confident that Amway will be successful in Vietnam as it has been in many other markets?

Over the 52 years we have grown our business, we find that although every market is unique and has different circumstances, some aspects are constant around the world. Consumers everywhere seek quality products at a good value. People want to improve their lives and the lives of their families. Amway has been successful because it addresses both of these needs.

We offer quality products to consumers and an opportunity for individuals to own their own businesses and make additional income. Our success in South East Asia or the fact that we have been growing in Thailand is not unique to that region or market. Vietnam is another example of a strong economy that continues to develop and we are very optimistic about the potential of the Amway business in Vietnam.

Due to financial difficulties, some direct selling companies decided to stop expanding into the market and raise selling prices of products. What about Amway?

We have a long-term commitment in Vietnam and will continue to invest in the future. As a consumer products company operating through the direct selling channel, our business has proven resilient during economic ups and downs.

In difficult economic times, people become more open to try new opportunities and seek ways to earn additional income. They find the Amway business opportunity is a good way for them to achieve their financial goals. And so, even in difficult economic times Amway has been successful.

You started your business here in 2008 at a time when the Vietnamese economy entered a downturn with high inflation and declining purchasing power. Is the economic downturn a threat, and have you faced any challenges?

Vietnam is a strong and stable market and the Amway business has been growing very well here. In fact, our success in Vietnam has exceeded our initial expectations. So, while I come here now to celebrate the market’s success, another reason for my visit is to better understand the economic conditions in the marketplace and to learn how we can further support and expand our business in Vietnam.

When you look at the Amway business over the years, you will see that even in tougher economic times, Amway continues to grow. I am very optimistic about the future of the Amway business in Vietnam.

Are you satisfied with the business results achieved over the last four years since Amway Vietnam has penetrated the market?

Yes, very much so. We are very proud of the great results and the success Amway has had in Vietnam. We will continue to support the market place to achieve even higher growth in the years to come.

Do you plan to expand production in Vietnam?

This is currently under consideration. Our goals have always been to support the business growth, help our distributors achieve success and meet the needs of consumers. We are evaluating what next steps we need to take to achieve these priorities.

Direct selling (or multi-level marketing) is still new and faces challenges in Vietnam. How could you resolve the difficulties?

Overcoming challenges takes time and effort. We believe that the direct selling industry and Amway have been moving in the right direction. We have been transparent in working with the Vietnamese government and with the people of Vietnam. We have conducted our business honourably and ethically.

We continue to build a strong foundation and a solid reputation in the market place. We invest in business operations and in training programmes. We train our distributors so they understand the market place, the Amway business, its rules and values. We help the distributors in Vietnam become honourable and ethical businesspeople.

In Vietnam, multi-level marketing is sometimes controversial. How can you help drive Amway Vietnam become even more successful?

For more than 50 years, Amway has grown successfully and is now a truly multinational and multicultural direct selling industry leader. We are successful because we have listened to the marketplace and consumers around the world. We have also always worked with local authorities and governments. The Vietnamese government has done an excellent job of creating good standards and clear regulations for the direct selling industry. We are very grateful for that.

How do you help the distributors in Vietnam be successful?

The success of Amway distributors is synonymous with the success of Amway – one cannot happen without the other. To help distributors succeed we provide them with a sustainable business opportunity and quality products that consumers want. We also invest heavily in training and education to help distributors run their businesses honourably and ethically. We also encourage distributors to get involved in their communities because we believe that a successful distributor is part of a successful community.

Over the last four years since we started the business, our distributors together with Amway Vietnam’s employees have been involved in our One by One Campaign for Children, helping the children with cleft lips and palate deformities through the partnership with Operation Smile. Also during 2011 – 2013, we partner with the Ministry of Labour, Invalids and Social Affairs to support the underprivileged children in Thanh Hoa province.

Thailand is now among Amway’s top 10 markets, so when will Vietnam surpass Thailand as one of Amway’s largest markets?

That is very difficult to predict. No two markets are identical or have the same growth pattern. Vietnam is a robust market with a promising future and a tremendous growth opportunity. In my opinion, Amway Vietnam has a potential to be one of Amway’s top markets. We have to make sure we do the right thing here first, and I am confident Amway Vietnam will be as successful as other markets.n