Is It Quixtar, Amway, Or
Amway Global?
Amway Global
is a direct selling company and manufacturer that uses
multi-level marketing to sell a wide variety of
products, primarily in the health & beauty iindustry.
Amway Global
was founded in 1959 by Jay Van Andel and Richard DeVos.
Based in Ada, Michigan, the company and family of
companies under Alticor reported sales growth of 15%,
reaching 8.2 billion for the year ending in December 31,
2008. Its product lines include home care products,
personal care products, jewelry, electronics, Nutrilite
dietary supplements, water purifiers, air purifiers,
insurance and cosmetics. In 2004, Health & Beauty
products accounted for nearly 60% of worldwide sales.
Amway Global conducts business through a number of
affiliated companies in more than ninety countries and
territories around the world. It is ranked by Forbes as
one of the largest private companies in the United
States and by Deloitte as one of the largest retailers
in the world.
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International expansion
Amway Global
expanded overseas to Australia in 1971, to Europe in
1973, to parts of Asia in 1974, to Japan in 1979, to
Latin America in 1985, to China in 1995, to Africa in
1997, to India and Scandinavia in 1998, to Russia in
2005, and to Vietnam in 2008.
Quixtar:
In 1999, the
founders of the Amway Global corporation established a
new holding company, named Alticor, and launched three
new companies: 1) a sister (and separate)
Internet-focused company named Quixtar, 2) Access
Business Group, and 3) Pyxis Innovations. Pyxis, later
replaced Fulton Innovation, pursued research and
development and Access Business Group handled
manufacturing and logistics, for Amway Global, Quixtar,
and third party clients.
After
virtually all Amway Global distributors in North America
switched to Quixtar, Alticor elected to close Amway
Global North America in 2001. The main difference was
that all distributors, now called Independent Business
Owners (IBO), could order directly from Amway Global on
the internet, rather than from their upline "direct
distributor", and have products shipped directly to
their home. The Amway Global name continued being used
in the rest of the world, and the home of the Orlando
Magic was name the Amway Global Arean in 2005. The
Orlando Magic is owned by Amway Global founder, Richard
Devos. In 2006, Quixtar published The Quixtar
Independent Business Owner Compensation Plan, in which
the company reported that the average monthly groww
income for "Active" IBOs was $115. In June 2007, it was
announced that the Quixtar brand would be phased out
over an 18 to 24 month period in favor of a unified
Amway Global brand worldwide.
Product Brands:
Amway Global's product line grew
from LOC, with the laundry detergent SA8 added in 1960,
and later the hair care product Satinique (1965) and
Artistry (1968). Today Amway Global manufactures over
450 products, with manufacturing facilities in Ada,
Michigan, China, and India, as well as Nutrilite organic
farms in California, Washington State, Mexico, and
Brazil. In addition, Amway Global affiliates market
products from hundreds of other manufacturers offering
everything from books (e.g. Barnes & Noble, North
America) to wine (World of Wine, Europe).
Household Cleaners:
Amway Global is best known in
North America for its original cleaning products , LOC,
SA8 clothes washing products and Dish Drops dish
cleaning products. In the January 2007 issue of Consumer
Reports. SA8 with Bioquest was rated as the best
performing laundry detergent, scoring 99 out of a
possible 100. Consumer Reports did however criticize
SA8's pricing, which was disputed by Amway Global in
2008. Amway Global's cleaning products were named
Favorite Of Experts by an independent consumer survey in
Ukraine.
Health & Beauty:
The majority of Amway Global's
sales today come from the Health & Beauty sector and in
North America in the Amway Global/Quixtar website is
ranked the #1 Health & Beauty website by Internet
Retailer. IN South Korea, Amway Global is ranked one of
the top two companies in toiletries and cometics. Amway
Global's health & beauty brands include Artistry, time
Defiance, Santinque, Tolsom, Body Serie, Glister,
Moiskin (South America), Nutrilite, Nutriway
(Scandinavia and Australia/New Zealand), eSpring,
Atmosphere and iCook as well as XS Energy drinks.
Artistry:
Amway Global's Artistry products
include skin care, cosmetics, and anti-aging creams and
serums. Euromonitor International, an independent
researcher and publisher of market reports, business
reference books and online information databased, ranks
Artistry as one of the world's top 5 best selling brands
in the prestige brand category, alongside Clinique,
Estee Lauder, Lancome, and Shiseido. Artistry is the
only direct sales brand classified in the "prestige"
category.
Nutrilite:
Amway Global's Largets sellling
brand is the Nutrilite range of health supplements
(marketed as Nutriway in some countries), and in 2008
Nutrilite sales exceeded $3 billion globally. Nutrilite
products incorporate organically grown whole-plant
concentrates. Euromonitor has for several years ranked
Nutrilite the world's best selling nutritional brand in
tablet and capsule form. In 2001, five Nutrilite
products were the first dietary supplements to be
certified by NSF International. Surveys by independent
group Consumerlab since 2002 have rated Nutrilite as
having the highest customer satisifaction rating (96% in
2006). In 2006, 2007, 2008, and 2009 in the nutrient and
health food category, Nutrilite won "Platinum" and
"Gold" awards in Malaysia, China, Taiwan, Thailand, and
Asia overall in the Reader's Digest "Trusted Brands of
Asia" survey. In 2008, Nutrilite scientists, in
partnership with Alticor subsidiary Interleukin Genetics
won the 12 John M. Kinney Award for Nutrition and
Metabolishm for their research into the interaction
between nutrition and genetics.
eSpring:
Amway Global's eSpring water
filter, introduced in 2000, was the first home water
treatment system to incorporate a carbon block filter
and Ultraviolet disinfection unit, becoming the first
home system to achieve certification for ANSI/NSF
Standards 42, 53, and 55. The unit was also the first
commercial product to include sister company Fulton
Innovations eCoupled wireless power induction
technology. Fulton innovation introduced the technology
in other consumer electronic products at the 2007
International Consumer Electronics Show. Companies
licensing this technology include General Motors,
Motorola and Visteon. In 2006, eSpring was named Product
of the Year by the Poland-based non-profit World
Foundation of Health, Heart and Mind. eSpring has won
numerous Gold and Platinum awards in the Reader's Digest
Most Trusted Brand Asia surveys.
Atmosphere:
In 2008, Amway Global's HEPA air
filtration system became the first air cleaner Asthma
and Allergy Friendly by the Asthma and Allergy
Foundation of America.
Business Model:
Amway Global combines direct
selling with multi-level marketing strategy. IBO's may
both market the products directly to potential customers
and also recruit (sponsor) and train other people who
become IBO's themselves and in turn have the same
opportunity. Each IBO may earn income both from the
retail markup on any products they sell personally, plus
a performance bonus based on the sales volume they and
their downline have generated. People may also register
as IBO's to buy products at a discounted rate.
Definitions:
IBO/ABO/AIE - Independent Business
Owner/Amway Global Business Owner/Amway Global
Independent Entrepreneur is a business partner of Amway
Global who is authorized to market and distribute
products and services available from Amway Global.
Different names are used in different markets.
Distributor - an older term for
IBO
PV - Point Value is a value
assigned to each product or service by Amway Global. An
IBO's monthly performance bonus bracket depends on total
PV in a month.
BV - Business Volume is typically
the wholesale cost of the product or service sold by
Amway Global. Performance bonuses are multiplied by the
groups total BV.
Performance Bonus - is the monthly
bonus paid by Amway Global to IBO's. The higher the PV,
the greater the percentage earned. In North America the
Performance bonus ranges from 3% - 25%. In other
markets, it ranges from 3% - 21%.
Retail Profit is the markup earned
by an IBO when they sell a product to a consumer, either
personally or through an Amway Global website.
Recommended retail markup ranges from 20%-35%.
Sponsor is an IBO who refers
(sponsors) a new IBO to Amway Global.
Upline is the term used to refer
all the IBO's up in the line of sponsorship of an IBO.
Downline is the term used to refer
all the IBO's down in the line of sponsorship of an IBO.
They are collectively also known as group
Leg refers to a personally
sponsored IBO and all of their downline
Silver Producer is an IBO who has
reached the maximum bonus level for one month.
Gold Producer is an IBO who has
reached the maximum bonus level for three month.
Platinum or Direct is an IBO who
has reached the maximum bonus level for six months.
Originally this was the first point at which a
distributor could purchase products directly from Amway
Global, and not from their sponsor or upline. In North
America a Platinum is generating a minimum of
approximately $30,000 in sales volume per month.
Emerald a distributor with at
least three legs generating Silver Producer volume for
at least 6 months of a year.
Diamond a distributor with at
least six legs generating Silver Producer volume for at
least 6 months of a year.
Q-12 is a Platinum or higher IBO
that qualifies every month for 12 months a year.
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