Amway forays into herbal skin care segment, eyes $1 bn sales by 2025
New Delhi: Direct selling major Amway Tuesday announced its foray into herbal skincare segment in India to tap the growing demand of such products among youths in its pursuit of USD 1 billion total sales by 2025.
In the next six years, the company expects its Attitude range of skincare products to become a Rs 500-crore brand accounting for 10 per cent of its total sales.
The figures are based on foreign exchange rate during the time when the announcement was made earlier this year.
Commenting on the foray into herbal skincare range, Amway India CEO Anshu Budhraja said the marketplace is becoming more attuned to the herbal category.
"There is a lot of traction for herbal products beyond nutrition, leading to beauty, in the market...Our research shows that the youth of India, consumer of this new segment, is growing exponentially and the products with traditional wisdom are appealing to them," he told PTI.
Amway is kicking off its herbal skincare range with three products - a day cream, a night cream and a face wash - with all the locally-sourced ingredients, Budhraja added.
On the expectations from the new range, he said,"currently Attitude is about 6 per cent of the total business. We believe that this would become a Rs 500-crore brand, within that USD 1 billion (target), that is almost 10 per cent of the total sales."
Earlier this year, Amway had said it was looking to touch USD 1 billion sales in India by 2025, driven by new product launches and expansion of sales network, including e-commerce.
In 2017-18, the direct selling firm had sales of Rs 1,800 crore and expects to touch Rs 2,000 crore in 2018-19.
The US-based company expects India to be among its top 3 markets globally by 2025, up from seventh at present.
In the beauty segment, the company has two brands, Artistry, a super premium global range and the locally developed Attitude.
The Attitude skincare range has 18 SKUs (stock keeping units) but 40 per cent of it is accounted by three SKUs -- day cream, night cream and face wash, he said.
He said Amway is looking towards positioning Attitude range with a dominant number of products being herbal.
"For us the Attitude category is growing at 19 per cent. This (herbal) is one innovation, which can lead and drive our beauty category,"