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Amway expands its consumer base

08 Jan '07
1 min read

Amway based in Ada, Michigan operates in 80 countries across the world.

The direct selling to consumer concept of Amway is loosing its entity in China.

The Chinese Government banned the direct selling in 1998. Amway compensated by opening 120 stores and sells about 160 products such as cosmetics and household items.

But after joining the World Trade Organization in 2001, the Chinese government reintroduced direct selling format for Amway.

The Michigan firm invested more than $200 million in China during last 10 years and achieved revenue of more than $2 billion out of $6.4 billion in 2005.

Amway has more than 1.3 billion customers in China and the growing middle class represent a huge market for Amway.

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