Amway (ua)

The History of Amway

Who is Amway?

Co-founded in 1959 by Jay Van Andel and Rich DeVos, Amway is one of the world’s largest and most successful direct selling companies.

Amway is part of the Alticor group of companies, headquartered in Ada, Michigan, USA. On results 2009 the general volume of sales of Alticor made 8,4 milliards of dollars of the USA.

The company offers more than 450 quality products, most of them researched and developed in-house. A sales force of more than 3 million people, markets and sells health, beauty, durables and homecare products to consumers in more than 80 countries and territories worldwide.

The buzz-phrase for a successful business in the 21st century is: Think Local, Act Global. Amway has been doing just that for more than 50 years.

1950s

Amway cofounders and childhood friends, Rich DeVos and Jay Van Andel, worked together in a variety of small entrepreneurial ventures since their teens. From these initial experiences, the two learned that they shared many common values, interests and aspirations.

In 1949, they were introduced to NUTRILITE^™ Food Supplements and the direct selling method by which they were sold. Success as Nutrilite sales people convinced DeVos and Van Andel that anyone who was willing to work hard, could have a business of their own through the direct selling method.

In 1959 Van Andel and DeVos co-founded Amway, adopting key concepts of the Nutrilite sales plan: a low risk business opportunity open virtually to anyone, no territorial or income limits, low initial investment and the potential for new distributors to surpass the earnings of the individual who introduced them into the business (sponsor) depending on their capabilities and on the time and efforts they are willing to spend on their business.

Amway started by developing and selling its own product line of high-quality, highly-concentrated home care products. Multipurpose Liquid Organic Cleaner, or L.O.C.™, was the company's first product.  It was an "organic" product long before such products became mainstream.

1960s

In its first year, Amway sales reached an impressive US$500.000. While the business continued to grow rapidly in the United States, DeVos and Van Andel decided in 1962 to expand to Canada. 

Amway added more products, including SA8™ Laundry Detergent launched in 1961 and AMWAY QUEENÔ Cookware. The new personal care line included women's fragrances, grooming products and ARTISTRY™ cosmetics. A Personal Shoppers Catalog featuring 300 other brand name products was also introduced.

By decade’s end, Amway US and Canada operations had a distributor network of 100,000 and turnover of US$85 million. Some 200 products were manufactured at Amway’s extensive complex in Ada, Michigan where more than 700 people were employed.

1970s

The 1970s marked Amway overseas expansion to Australia, Europe and Asia.

Acquisition of the controlling interest in Nutrilite Products Inc. allowed Amway distributors in the United States to retail the complete line of NUTRILITEÔ Food Supplements.

The Amway production facilities continued to grow to become a self-contained city covering more than 232.000 m², with its own power generator, water treatment plant, recycling facility, shuttle bus and fire department. Throughout the world, Amway facilities totalled 418.000 m².

By the decade’s end, Amway sales increased nearly sevenfold to an impressive US$800 million.

1980s

With no slowing down in sight, Amway sales passed the billion-dollar mark in 1981.

A new cosmetic plant completed in the first half of the 80s, allowed the company to develop and manufacture the ARTISTRY™ products from the headquarters in Ada, Michigan.

Amway also successfully pioneered an entirely new product category, the AMWAY Water Treatment System

In fact, this product line continues to hold a top position in the marketplace today.

In 1989, Amway was recognized as a corporate leader in promoting environmental awareness and education when it received the prestigious United Nations Environmental Program Achievement Award.

1990s

Following in their fathers’ footsteps, the sons of Jay and Rich succeeded as Amway Chairman and President sharing the Office of the Chief Executive responsible for managing Amway’s day-to-day affairs.

At the same time, a new generation of leaders also began to emerge within distributor families, building upon and continuing the successes of their parents.

The 90’s saw dramatic international expansion. In just the first half of the decade, Amway doubled the number of its international affiliates. Annual sales kept pace – tripling during that same period.  By decade’s end, more than three million salespeople in some 80 countries and territories were involved in the Amway business worldwide and the estimated retail sales volumes reached US$5 billion.

Around the world, Amway's regional and country affiliates continued to support their distributors with the launch of e-commerce sites that extend the Amway opportunity into cyberspace. The web-based Amway businesses around the globe, supported by local distribution and warehousing facilities, has assured timely and accurate order processing and product delivery.