No slowdown in health, beauty segments: Amway India CEO
"Health care and beauty categories have witnessed year-on-year higher volume growth,"Amway India chief executive Anshu Budhraja said.
Speaking to ET at its corporate headquarters in Gurgaon, Amway India chief executive Anshu Budhraja said: “We have not seen consumers downtrading on health care and beauty – both categories have witnessed year-on-year higher volume growth. It’s in categories such as personal and home care where sales have slowed down.”
He said smaller markets have contributed to growth in the beauty segment, on the back of increased participation by women in the workforce. Amway’s participation of women in the workforce, fueled by tier 2 and 3 markets, has gone up 65 per cent in 2018-19 from 55 per cent two years earlier, the maker of Nutrilite supplements and Satinique shampoo said.
“Over the past one year, we have seen a mixed bag in terms of consumption between geographies and segments. Smaller tier-2 and 3 markets are continuing to grow, while growth has tapered off in mature markets. Opportunity is driving growth in the smaller markets,” Budhraja said.
He said overall annual growth slowed down to about 2 per cent in the current year, from 6 per cent in the previous year.
Amway has added to its durables business with home air purification systems to leverage the potential of a nascent but rapidly growing segment estimated at Rs 350 crore. “We do expect the timing of the launch to coincide with the current season with the high existing pollution levels. We need to break myths that indoor pollution doesn’t exist,” he said.
The Rs 1,900-crore company hasn’t taken up pricing over the last four years. “We’ve been able to manage the indexation of costs through productivity gains and restructuring; we want to hold on to pricing the next two-three years as well,” Budhraja added.
Amway India, wholly owned subsidiary of the US $8.8 billion Amway Corp, is its seventh largest market in terms of size. Close to 30 per cent sales of the India entity are now being contributed through its own online platform, the company said.