Some Do It the Right Way in Turkey
2014 marked network marketing’s 23rd year in Turkey. Oriflame was the first international that took the first step into this country. Quite a few local and international companies followed it afterwards. Among those that are currently present, are prominent players like Avon, Amway, Energetix, Forever Living, Herbalife, Kyani, LR Health & Beauty Systems, Nu Skin, Oriflame, PartyLite, PM International, Saladmaster, Sunrider, and Tupperware. Some of the direct sellers are really happy for being in this market. Some even regret for not having entered earlier. However, there also others that have been complaining about and blaming the external factors for not succeeding. And among these, there are also those who left the country such as Neways many years ago, and most recently Nikken and Cristian Lay.
This week I will share with you information about two companies that have quite different approaches to direct selling yet have been more than successful in the Turkish market: Amway and Tupperware.
Amway was the third international direct seller to enter Turkey in 1994, following Oriflame and Avon. It celebrated its 20th anniversary last year.
In 2002, Amway Turkey’s sales was less than $5 million. The company said it had 18,000 “business owners”. Amway more than doubles its revenue the following year, exceeding $10 million.
Amway’s growth follows a quite positive trend afterwards, too: $23 million in 2004, $36 million in 2005, and $45 million in 2006. Amway’s organization reaches 96,000 business owners by the end of 2006.
Country Manager Tayfun Ergun announced Turkey was Amway’s 4th largest operation in Europe as of end-2006 and his expectation was to be the 3rd in Europe, after Russia and Germany, in the coming five years by exceeding the $100 million/year milestone.
In mid-2010, the company said in 2009 Amway had 160,000 business owners in Turkey and the target was to close the year by 180,000. Amway’s revenue target for 2010 was also announced as $75 million.
In 2011, Amway’s the highest growth in the world was achieved in Turkey.
Two years later in 2013, Amway Turkey’s revenue was over $90 million this time. And the number of business owners reached 270,000.
The company closed last year with a turnover of $93 million and 283,000 business owners. After being for 20 years in this market, now Turkey is Amway’s 3rd largest operation in Europe ad it ranks the 12th in the world. Amway management says the objective is to reach an annual sales volume of $300 million and 500,000 business owners in five years.
Tupperware launched its business in Turkey in 1996. Initially, the growth had been quite modest lagging behind other major direct sellers. Shortly after however, its business started to pick up considerably.
In 2011, Tupperware Turkey’s field organization reached 30,000 consultants.
Tupperware CEO Rick Goings was saying in 2012 that the operation in Turkey had grown on the average, 25% / year in the previous five years,
During his visit to Turkey the following year, this time he said the company had increased its sales by 20 times in the previous 10-year period, and the field force had reached 40,000 people by then.
And the company achieved a sales turnover of $100 million in 2014, generated by 50,000 consultants. This represented a 19% sales growth as compared to 2013. Turkey has been Tupperware’s highest growing market in Euope in the last six years. And for now, it is Tupperware’s 4th largest operation in Europe and the 13th in the world. Company has recently announced its sales target for 2020 as $186 million.
These are two of the very good examples to operations that have been more than successful in Turkey. I would suggest those who have not been so to think thoroughly what they have done “not so right”. The easiest way out from this on the other hand, would be to blame the general business conditions and/or the local management.