US Amway Aiming for Ever-bigger Share in China

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Last updated at: (Beijing Time) Tuesday, November 26, 2002

US Amway Aiming for Ever-bigger Share in China

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Global consumer goods giant, Amway, announced Monday in Guangzhou that it plans to build an additional 50 to 100 direct sales stores in China, during the company's current fiscal year ending on August 31 next year.

The plan is part of the US-based company's intention to expand its business in the fast-growing Chinese market in the coming years.

The company has, to date, built more than 80 direct sales outlets in China, at a cost of 150 million yuan (US$18 million).

Their expansion plans were revealed yesterday by Eva Cheng, president of Amway's China operation, as the company celebrated the completion of the phase-five facilities of its manufacturing base in Guangzhou, South China's Guangdong Province.

She said the company's financial input into the newly completed Guangzhou manufacturing base amounted to US$25 million. The base began operating in 1995.

Before the completion of the new facilities, Amway had invested a total of US$100 million in the base, its largest outside the United States.

Guangzhou currently manufactures household cleaning materials, personal care products, cosmetics and nutritional products and has a maximum capacity of 10 billion yuan (US$1.2 billion) a year.

"We will continue to invest and expand our capacity in China ...as we have confidence in the market," Doug Devos, Amway's global president, told a press conference yesterday.

China has become Amway's fourth biggest market around the world, he added. Last year the company reported sales of 4.8 billion yuan (US$578 million) in China.

The new facilities of the Guangzhou base will focus on the company's Nutrilite-brand nutritional products. Further evidence of the confidence Amway has in the Chinese market came earlier this year, when the firm launched its sole overseas research and development centre at the Guangzhou base.

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