New Delhi: Direct selling FMCG firm Amway India is looking to clock 6-7 growth in revenue next year, driven by health and beauty segments, a top company official has said.
The company, which on Tuesday introduced new products in its global premium beauty brand Artistry here, expects a double-digit growth in the segment. The FMCG major is expecting its beauty segment to contribute around 20 per cent to overall revenue in the next five years.
Amway is also investing in its online platform, which the company believes will get up to 40 to 50 per cent of sales in the coming years.
"Last year, we had 6 per cent growth when we closed. This year, our health and beauty segments growth is 6 to 7 per cent, which is intact. However, we do have a slowdown in the personal and home care segments and therefor on overall basis, without any price increase, we are expecting 2-3 per cent growth this year," Amway India CEO Anshu Budhraja told PTI.
"Next year, our goal is to go back to 6 to 7 per cent growth again," he added. In 2018, Amway India had clocked sales of around Rs 1,900 crore, of which 50 per cent was contributed by healthcare, 30 per cent by beauty and personal care, and 7 per cent by consumer durables, Budhraja added.
Amway, which is also present in the beauty segment with its home-grown entry-level premium brand 'Attitude', presently gets 13 per cent of its overall India revenue from it.
"With health and beauty as the key focus areas, Amway India expects a double-digit growth in its beauty category, contributing 20 per cent to the overall revenue in the next 5 years," said Budhraja.
The company wants to cash in on the "good potential" of the beauty and skincare market, which is estimated to be around Rs 20,000 crore. Amway India Tuesday announced launch of Artistry Intensive Skincare Advanced Vitamin C HA Formula here.
"India's beauty and skincare market is witnessing a strong growth on the back of an increasing number of working women, rise in disposable income, and higher demand for quality skincare products across all age groups. With a strong focus on the beauty category and the premium skin range, Artistry has been contributing a double-digit growth and grown to become the leading brand in the premium skincare segment in India," said Budhraja.
Besides, Amway is also focussing on boosting online sales and expecting up to 50 per cent revenue coming through this channel in the coming years.
"Our 30 per cent sales are from current captive online sales and hopefully we would get it to 40 to 50 per cent in the coming years," Budhraja said adding that the company is investing to expanding its reach and consumer engagement.
"We are doing lots of investments for getting our website to deliver a much better consumer experience from a product stand point," he said adding that "we are also revamping our distribution and logistics and hopefully, we would launch in the first quarter of 2020." Amway India is a wholly-owned subsidiary of Michigan-US based Amway and operates in segments as nutrition, beauty, personal care, home care and consumer durables.
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