While the US market is abuzz with chances of Amway backing a new online store called Fanista, the company bosses in India feel the market here is yet to catch up with the online shopping mall model.
William S Pinckney, managing director and chief executive officer of Amway India Enterprises, said: “There is a huge opportunity for e-commerce in India, but at the same time, per head penetration of computers here is relatively low. The overall business done through e-commerce is still relatively low.”
Amway launched a website–amway4U.com–two years back for online e-ordering of products, but has as little as 4-5% of bookings from that.
“Our goal is to set up e-commerce and have that running before people get to it. We are developing a major website right now, and ultimately when people become more comfortable with doing business through Internet, that side of our business will grow,” said Pinckney.
Talking about new ventures, he said the company has taken a decision to become more proactive and look for opportunities in areas where it is not present now. “It may mean joint ventures and acquisitions. Globally, we are looking at opportunities in areas where synergies exist between our current business model and something else,” he said.
Pinckney, who was here at the launch of a new product category under the brand Attitude, said: “We are likely to cross Rs 1,000 crore turnover in 2007 compared with Rs 738 crore last year. Our target is to achieve Rs 2,500 crore by 2012.”
The Indian arm of the multi-level marketing behemoth has 20-25% market share of the Rs 2,500 crore organised direct marketing in India. The company earns 60% of its revenues from health and beauty products in India. While the cosmetics segment, at present, fetches 10% of revenues, it is likely to increase to 20-25% in the next five years.
Naveen Ananad, vice president (marketing) of the company, said: “Cosmetics have been the largest growing category for us last year and we are extremely buoyant about it.” While 40% of the entire cosmetics sale is from Attitude, a premium brand in India, 60% is from Artistry, a super premium global brand.