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Digitalization in direct selling

Released at: 11:30, 10/06/2019

Digitalization in direct selling

Photo: Amway

Mr. Gan Chee Eng, Regional President of Amway Asia-Pacific, tells VET about his upcoming visit to Vietnam as well as Amway's development prospects in the country.

by Thanh Thanh

Mr. Gan Chee Eng, Regional President of Amway Asia-Pacific

What will you do to materialize Amway’s commitment to sustainable development in Vietnam?

Sustainable development is a common goal and an important goal that Amway Global aims for in every market where we do business. In order to achieve this goal, we need to join hands and contribute towards this goal together with all of our employees and business partners. Each individual has a very important role within that common goal. In our last ten years in Vietnam, Amway has demonstrated a spirit of compliance with the law and contributed to the community through efforts made and methods used throughout its operations.

Amway and the Ministry of Health recently signed a cooperation agreement on the “Nutrition improvement for children under 5 years old” project in the 2019-2020 period. In addition to providing more than 1 million non-commercial Nutrilite Little Bits products to 85,362 young children in Nghe An and Ha Giang provinces, the project also implemented a range of activities to improve knowledge about nutrition among parents and teachers in the areas. The program is within the framework of the Nutrilite Power of 5 campaign that Amway has implemented in Vietnam since 2014.

From its official launch in 2014, Nutrilite Power of 5 program carried out initiatives by Amway to help improve public awareness of nutrition for children. Apart from communication activities on childhood malnutrition in Vietnam, Amway and the National Institute of Nutrition, Ministry of Health provided 26,497 Nutrilite Little Bits products for 6,773 children in Bac Giang, Lao Cai and Thanh Hoa.

We build a solid foundation for sustainable development in Vietnam by complying with legal regulations, conducting manufacturing activities and developing the talents of our staff and business partners. Amway also works closely with government agencies and the media to raise social awareness about legitimate direct-selling business versus scams to enhance consumer protection. Promoting the growth of entrepreneurship to support the sustainable social economic development of Vietnam, is also a key area of interest for Amway.

We will continue to develop and adapt to the changes in the local marketplace and further innovate to provide high quality, safe and eco-friendly products to the consumers in Vietnam.

What is your plan to differentiate Amway from the competition, especially in the context of the digital economy?

Along with Industry 4.0, the digitalization of many business sectors has led to an expansion of global e-commerce. The development of such new trends means many businesses have to adapt to the new external environment to harness these new capabilities and innovate on how to integrate them to their current business models.

In the 2018 Amway Global Entrepreneurship Report (AGER 2018), respondents said they prefer to experience direct customer services rather than through digital channels. For example, in Vietnam, up to 76 per cent of respondents said they would like to experience direct customer care. This is a unique strength of direct-selling companies like Amway whose business is based on person to person relationships. When you strengthen a Direct Selling company with digital capabilities, it will only help it to grow faster by providing an improved customer experience, hence it is no surprise that the direct selling industry continues to grow strongly globally, as it brings great value to consumers.

New trends in the 4.0 era also pose many challenges for enterprises, forcing them to create new platforms to find new customers and also to stay relevant to consumers’ changing habits. Amway plans to create digital platforms which aims to provide best-in-class online shopping experience to consumers and business support to all Amway Business Owners, through big data and machine learning platforms. This is one of the directions Amway is investing in to adapt to the new era.

One of the main targets of the 4.0 development trend is to better connect with the younger consumers in the market place. We have been helping our Amway Business Owners to build digital communities to match their passion in health, beauty or culinary. We take these communities from online to offline through our innovation in products and support for leaders to create activities to build the relationships among each other in their own communities.

What are your ambitions for Amway in Vietnam in the future?

The direct selling industry in Vietnam has big growth potential and Amway can contribute to this growth in a sustainable manner.

Vietnam has a large population of close to 100 million people and the demographics point to a young dynamic and beauty population who has a strong leaning towards entrepreneurship and striving to improve their lives. Amway’s key business focus is in the health and beauty segments, which are two fast growing segments in Vietnam. According to the AGER 2018 report, among the 44 countries surveyed, Vietnam continues to lead in entrepreneurship, with its Amway Entrepreneurial Spirit Index increasing compared to 2017.

All of these key points make us very optimistic about Amway Vietnam’s development prospects in the future especially as we are the first company to be issued a new multi-level marketing license under the new Decree No. 40/2018/ND-CP on the management of business activities in multi-level marketing, replacing Decree No. 42/2014/ND-CP from 2014.

With a commitment to long-term sustainable development in Vietnam and with continued investments in digitalization, we are well poised to achieve its business goals in Vietnam. The goal of Amway is to empower people in order to bring a better life to everyone through our business opportunity and high-quality products. We will continue to do our best to provide consumers with high technology nutrition & beauty products and a great customer experience when you interact with Amway.

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