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 Amway Opens in India

Early in May, 1998, Amway opened its doors in India. This week, an article appeared in Bangalore Magazine. The author, Ramjee Chandran, did an excellent job of examining the business. Among other things, he published a price comparison of all six of Amway's products versus locally available products.

In India, it costs 4,200 rupees (Rs.) to buy a Business Kit. The average annual per-capita income in India is only 11,900 Rs., or about $340. This means that an Amway kit costs a little more than one third of the average per-capita income. Some bargain!

The article clearly makes the point that, while a few people and Amway itself will make money in India, the distributors on the whole will lose money. This situation is hardly unique to India. North American distributors could certainly learn something from this explanation of the business.

July, 1998. In a subsequent issue of Bangalore Magazine, Mr. Chandran discusses the responses he received to the article from prospects and distributors, and from Amway. You can find these articles at Bangalore Magazine Editorial and rebuttal.

Price Comparison

 Amway Product

Comparable Product

Percent Difference
 G&H Body Lotion, 250 ml., Rs. 316.00 Nivea Lotion, 250 ml., Rs. 110.00

 287%
 Satinique, 250 ml., Rs. 314.00 Sunsilk, 250 ml., Rs. 85.00

 369%
DishDrops, 1 litre=4 litres, Rs. 420.00 Godrej Concentrate, 1 litre=4 litres, Rs. 64.00

 656%
See Spray Concentrate, 1 litre=4 litres,
Rs. 290.00		 Colin Glass & Household Cleaner, 4 litres, Rs. 252.00

 115%
Zoom Concentrate, 1 litre, Rs. 299.00 Robin Cuff's N Collars, 1 litre,
Rs. 128.75

 232%
LOC High Suds, 1 litre=167 litres,
Rs. 322.00		 Teepol, 5.5 litres=167 litres,
Rs. 352.00

 91.4

Of the six available Amway products, only one, LOC High Suds, is less expenseive than a competitor. See Spray comes close, while prices on the other four are so much higher as to be ridiculous. Who would pay 6-1/2 times more for Amway Dish Drops than for a competitive product?

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This page updated Jun-29-98