How did Amway come to China 50 years ago?

46 years ago, in a family basement in Grand Rapids, Michigan, USA, two young men in their twenties created Amway, with a multi-purpose concentrated environmental cleaning agent began the entrepreneurial journey. 46 years later, the company has become an annual sales of 6.2 billion U.S. dollars, with operations in more than 80 countries and regions of the multinational enterprise. Amway's development has experienced the economic recovery after World War II, the lopsided allocation of social resources during the period of U.S.-Soviet rivalry, the global expansion of multinational corporations that began in the late 1980s, and the knowledge-based economy brought about by the new technological revolution in the 1990s. In particular, its unique direct marketing business approach, bridging the social and cultural differences in various markets, the concept of adding color to your life to the global consumer, and for millions of salespeople to create a hard-working rich career opportunities. With the belief that it is not a multinational enterprise if it does not invest in China, Amway officially opened its doors in China in 1995. Whether it was the initial return of the storm, or 98 marketing ban, Amway did not hesitate, retreat. Ten years of wind and rain, Amway not only rooted in China, steady development, annual sales exceeded 10 billion yuan, the cumulative tax amount of nearly 10 billion yuan. Moreover, the reputation of the company has been rising, the quality products are y rooted in people's hearts, and the corporate citizens are benefiting the society. It is a pioneering and innovative spirit that has made this family-owned company ever new and thriving. Business innovation, unique characteristics At the beginning of the entry into China, Amway adopted the global proven and widely accepted direct salesman system. In order to practice the belief of respecting the national conditions, standardized management and law-abiding operation, Amway made a historic change in its business model in 1998, and launched the sales method of stores and hired salespersons in line with the current situation. Since June 1998, Amway has set up retail stores in many cities in China (150 stores by March 2005, with a total investment of more than 300 million yuan) to serve consumers directly. All products are sold in clearly marked stores and payment is made at a uniform price. At the same time, Amway insists on giving full play to the traditional sales advantages of direct salesmen. Through the detailed explanation and demonstration of professional salespersons to reflect the excellent performance of the products and advanced consumer concepts. Currently, Amway employs many active sales representatives in China to provide delivery and other services to customers. The company has also won wide recognition and universal praise from the community for its excellent product quality and comprehensive return guarantee system. Amway (China) has also made useful developments in the diversification of sales channels. The company has successfully adopted the authorized distributor system, whereby independently operated authorized distributors assist the company in developing markets, selling products and serving customers. In order to cope with the development of the ever-changing network economy, Amway increased its investment in e-commerce in 2004, providing consumers and marketers with diversified e-services and diversified query functions in the light of the national situation. In terms of market promotion, Amway has changed the promotion method of relying solely on word-of-mouth, and has launched advertising campaigns in the Chinese market, striking in all directions in outdoor advertisements, television, newspapers, magazines, the Internet and other media to establish the brand image of the company and its products. Chinese diving Olympic champions Fu Mingxia and Tian Liang have become the image spokespersons of Amway Nutrilite products. Nutrilite products became the only designated nutritional food for the Chinese Olympic Legion in the 2000 and 2004 Olympic Games. From the cooperation with Discovery Channel to produce a special film on nutritional exploration, to the beautiful presentation of the world's top musical "The Phantom of the Opera" by Yazi Cosmetics, to the full contact between Nutrilite, Yazi Experience Center, Amway Life Hall and consumers, the colorful and effective marketing has won a lot of praises from the industry. It can be said that Amway has innovatively walked out of a successful development path with Chinese characteristics. R & D innovation, advancing with the times Amway is in the industry is nearly white-hot competition in the fast-moving consumer goods industry, Amway has always been scientific research and innovation as a matter of life and death of the company's top priority. Since its inception, Amway is committed to providing consumers with high-quality and efficient products for their daily lives, Amway has developed from the initial several cleaning products, including nutrition and health food, beauty and cosmetics, personal care products, home care products and household durables five series of more than 400 varieties (in China to produce and sell the four series of more than 180 kinds of products), and this is based on the strong scientific and technological R & D and product innovation foundation. The foundation of product innovation. Amway headquarters in the United States has 90 laboratories equipped with top instruments and technology, employing more than 570 scientific research experts and professional and technical personnel. Only in Michigan headquarters Amway invested heavily in the establishment of an area of 15,000 square meters of R & D center. The center has established technical cooperation with 75 universities and hired hundreds of technical consultants in the community, and the center's researchers participate in 85 industry organizations. The center regularly maintains 500 research projects. Currently Amway has more than 500 patents in various countries around the world, with another 300 patents pending. Amway's Nutrilite Nutritional Foods line owns more than 3,000 hectares of organic farms in California, Brazil, and Mexico in the U.S., where it grows its own raw materials needed for processing nutritional foods. The Nutrilite brand alone has 12 specialized laboratories and employs more than 70 scientists engaged in research in more than 20 related fields. With China gradually becoming Amway's largest single market in the world, Amway has even tilted its global R&D focus to China. in June 2004, Amway announced the establishment of a global R&D center in Shanghai. The center will focus on research and development in the areas of natural herbs, biotechnology, human genetics and fashion products, providing comprehensive R&D and technical support for the global market. The R&D center marks that Amway's R&D-production-sales industry chain will be closer to high-growth markets, and the core aspects of operation and management, such as human resources, raw materials, and science and technology, will be further localized in the market. Management Innovation, Scientific Operation Scientific and effective management is the basis for the development of an enterprise and the cornerstone of its foundation. From the initial start-up to the establishment of factories in China, Amway has insisted on a strict and standardized enterprise system. 1992, when Amway invested in the Guangzhou Economic and Technological Development Zone, it endeavored to replicate the technologies, systems and management of the U.S. headquarter in China, so as to make the enterprise carry out the same standard in the world - the Gold Standard. In response to the problem of different standards being used in different technical fields in China and the United States, Amway insists on choosing the more stringent standard of the two to carry out quality control management. The Guangzhou production base follows the Gold Standard (GMP) used by the U.S. headquarters, where the screening of raw materials, formulation, mixing and packaging are all controlled by an automated production management computer program. Amway's quality control department is divided into three functional departments: Quality Assurance Services Department, Technical Services Department, Quality System and Safety, Health and Environment Services Department, with a number of functional laboratories, more than one hundred sets of advanced instruments and equipment imported from Europe, America and Japan, and more than 1,000 kinds of analytical testing methods. Meanwhile, the company's Total Quality Management (TQM) covers the whole process of supply chain from suppliers to customers and even after-sales service. We strive to provide customers with the assurance of high quality products through the work of Amway's quality personnel. Within one year after the Amway (China) factory was put into operation, it was awarded the ISO9002 international quality certification issued by the American Safety Testing Laboratory and the British Standards Institution, becoming the first daily chemical company in China to be awarded this certification. The factory also obtained ISO9001:2000 quality management system certification and ISO14001:1996 environmental management system certification issued by the U.S. Safety Testing Laboratory, Inc. respectively. This is a reflection of Amway's continuous strengthening of internal system construction and scientific management. In the Guangzhou production base, the height difference of the entire factory warehouse floor is controlled at 1 millimeter, and all the plants actively implement the aseptic control management of pharmaceutical companies. Digitalization and informationization are the future of the enterprise. During the ten years of operation in China, Amway has invested more than RMB 260 million in computer network and software, and has set up a smooth information highway between more than 30 provincial branches and stores across the country, which is able to support the business volume of 1 million orders per week and the production scale of RMB 30 billion per year at the highest level. The total physical length of all computer data lines in Amway (China) exceeds 100,000 kilometers, which can circle the earth for 2.5 weeks. As a world-renowned large-scale production and marketing of fast-moving consumer goods, Amway understands the importance of logistics for enterprises. Adapting to the company's marketing model and China's national conditions, Amway has adopted a core team + third-party supplier logistics application program. From the 15,000-square-meter storage and transportation center in Guangzhou to more than a dozen regional warehouses across the country, Amway's unique logistics operation gives full play to its own strengths in logistics management and makes full use of the strengths of the third-party professional logistics providers. The dynamic combination of local conditions makes the logistics management level and efficiency leading in the industry. Philosophy Innovation Giving Back to Society Steve Winanslow, Chairman of Amway Global, once said, "Amway's philanthropic philosophy stems from the traditional principles of family life, and family education makes me firmly believe that, as a member of the family, everyone should take on the responsibility of the family; and as a member of the society, every enterprise should give back to the society. Guided by the corporate philosophy of adding color to your life, and adhering to the tradition of giving back to society and caring for people's livelihood, Amway (China) has taken the lead in introducing and exemplarily practicing the concept of corporate citizenship, upgrading its own positioning from a purely economic person to a social person, and from a purely legal person to a moral person, and consciously integrating itself into China's historical process of building a moderately affluent and harmonious society in an all-round manner through dedicating itself to a variety of public welfare activities. After years of practice and a lot of research, combined with the current needs of Chinese society, Amway (China) has locked the theme of public welfare activities as children, health and environmental protection. Focusing on these themes, over the past ten years, Amway China has carefully selected and organized more than 1,200 public welfare projects and invested more than one hundred million yuan in them, not for the sake of fame but for the sake of effectiveness. Under the banner of global love hand in hand - care for children action, Amway (China) subsidized the postgraduate teaching groups of 12 famous universities, such as Tsinghua University and National People's Congress, to carry out the Youth Relay You and I walk with the famous school teaching activities in the poverty-stricken areas of central and western China; joined hands with Operation Smile International to successfully provide free surgery for 200 children with cleft lip and palate and facial disabilities in Wuhan; and funded 2.8 million yuan to donate the construction of a new school in the country, which is the first of its kind in the world. Amway has also donated 2.8 million RMB to build 10 Hope Primary Schools across China, extending a caring hand to those poor, helpless and disadvantaged children who are in dire need of care, so that they can regain their hopes and dreams. Amway has always regarded environmental protection as the cornerstone of sustainable development, and has internalized the principle of environmental protection into every detail of its production and management, and has been awarded the Environmental Achievement Award and the Crossing the Poles Medal by the United Nations. In order to ensure the safety and health of consumers, many Amway products have passed the National Environmental Labeling Certification; since 2002, Amway's environmentally friendly products have become the designated supplies for China's North and South Polar Expedition Teams; in 2004, Amway was actively involved in China's first clean-up of Mt. Everest, creating a brilliant environmental protection campaign by Amway. 2002, Amway initiated a large-scale green planting campaign throughout China, and now, for the first time, the company has launched a large-scale planting campaign. Since 2002, Amway has been launching a large-scale afforestation campaign throughout China, and now the one millionth tree will be planted by the company's founder, Mr. DeWitts, at the 10th anniversary celebration of Amway (China). Amway has always been devoted to advocating a healthy and scientific lifestyle, and the Amway Nutrilite Health Run has been held in China for three consecutive years since 2002, with each run setting off a wave of national fitness. With the continuation of the Health Run in 2008, it is believed that the concept of healthy, nutritious and sporty life advocated by Amway will be more y rooted in people's hearts. Amway's corporate citizenship image has become a model for Chinese enterprises. In 2004, Amway was ranked fifth in the corporate philanthropy list selected by Forbes China, and in 2004, the first Brightness Public Welfare Award for the top ten multinational corporations saw the figure of Amway, and the authoritative media praised Amway's public welfare mode of teaching in prestigious schools as a third way of the Hope Project. Amway Global Senior Vice President, Chairman of Amway (China) Ms. Zheng Li Jinfen once said, 46 years ago, Amway is just a soap production for Americans in the city of Ada, a family-owned business, 46 years later, today, we have been a business of five series of daily products of the international giant, in the color of your life under the concept, we are committed to the inner health and outer beauty of the natural natural and ingenious combination. We are committed to combining inner health and outer beauty in a natural and skillful way. We will unswervingly adhere to the values and corporate philosophy that have guided and helped us grow into a great company, and we will continue to innovate and keep pace with the times. Scale is only one measure of growth, and we want to be one of the most admired multinationals in China.