Amway announced plans earlier this week to expand its business in China over the next year. The American based direct sales company made the announcement last Monday in Guangzhou. Douglas Devos, head of the company said that they will invest $15 million dollars over 2009 to expand operations within the region.
A large portion of the money will go directly to the Guangdong Province where Amway’s China headquarters are located. The headquarters in the Province is the company’s largest overseas base. The headquarter covers over 141,000 square meters of land and employ over 6,000 people.
Money will be used to develop new and improved household products such as air and water purifiers as well as other kitchen appliances.
Amway opened up operation in the Guangdong Province in 1992 and since has expanded production there eight times. In total, Amway has invested over $220 million dollars to operation in China.
One strong reason for the company’s dedication to its operations in China is the struggling U.S. economy. While sales in the United States hold steady or dwindle, sales overseas, in China in particular, continue to remain strong. Over the last year, sales revenue increased 15% percent to climb to over $2 billion dollars. The company expects its latest sales figures to climb over 20% percent.
“For all the negative impact of the global financial crisis, we have strong confidence in the Chinese market,” said Devos. He went on to say, the country’s stable economic growth over the years has served as a backbone for Amway’s business expansion in China
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‘We are very excited to be part of this unique holiday event,’ says Steve Lieberman, Managing Director for Amway Global. ‘This event captures the spirit and warmth of the season and we are proud to be associated with the quality of the performers and skaters involved.’
