Direct sales company Amway Romania posted 51 million RON (14 million euro) turnover in the first nine months of the year, 70% more than the 30 million RON (7.4 million euros) in the same time in 2004. If calculated in euros, the turnover almost doubled. This performance was due to the introduction of new products, and to the overall trend of the makret, says George Popescu, Amway Romania''s branch manager.
"We introduced a water filtering product and that generated a very high growth," Popescu specified. He estimates at least 50% growth in the fiscal 2005-2006 from the corresponding period of the previous year.
"People''s consumption has gone up, the living standards have improved," Popescu explains. He has recently taken the reigns of Amway Romania, after having been informational project manager for Eastern Europe.
The official added the Romanian market was among to the top three in Europe in terms of Amway''s growth in the recently ended fiscal year.
The company operates under the US fiscal system, which has the fiscal year start on September 1.
The company''s turnover in 2004 amounted to 42.3 million RON (10.4 million euro) according to Finance Ministry''s website.
"Up to 40% of our sales are the Nutrilite nutritional supplements. When you launch a new product, you get spectacular sales for it and this boosts sales for other ranges, as well. Things stabilise then," Popescu says.
He expects the introduction of the E. Funkhouser cosmetics line as of November this year to account for at least 10% of the growth estimated for 2005-2006.
The water-filtering device introduced on the Romanian market in January 2005 generated sales of approximately 270,000 euros for the company given that it sold 3,000 units worth 3,400 RON (930 euros) each. In September and October this year, the first two months of the US fiscal year, the company posted approximately 7 million RON (2 million euro) sales per month.
Amway sells through its multi-level-marketing system cosmetics and personal care products (Artistry, Satinique, Protique, Tolsom and Body Series), health products (Nutrilite and Magna Bloc), and household use products (iCook, eSpring, SA8, L.O.C or Dish Drops). The products are 95% manufactured in the US, with the rest made in Ireland and Germany.
Amway is currently selling 600 products on the Romanian market. "Novelty is in demand. New products generate growth for the other ranges. For instance, if you buy some makeup, you will want to have an eye makeup remover etc.," Popescu explains.
Amway''s competitors on the segment of direct sales of cosmetics are Oriflame and Avon. As for the general cosmetics market, Artistry falls into the luxury category, with competitors here being Chanel, Lancome, Clinique and Estee Lauder.
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