Amway: Only our first few years were tougher than this year
Current problems are reminiscent of the years 1998-2000, when big foreign investors were only starting to enter the Romanian market, believes George Popescu, branch manager of Amway Romania, a company present on the direct sales market and number two on the direct sales cosmetics market after Avon.
"Perhaps only the early period of Amway, from 1998 to 2000 was
tougher than this year. In the summer, the sales curve deepened
because the austerity measures imposed by the government overlapped
with the holiday period, when people are no longer willing to buy
or do any other activity that direct sales entail," George Popescu
told ZF.
The company estimated a 23.8 million-euro (100 million-RON)
turnover for this year. In 2009, the company posted 27.7 million
euros (116 million RON) in turnover, down by around 25% on the
previous year, partly because of the euro depreciation.
"It is true that 2009 was the first year of financial crisis, but
the measures taken then were latent, their effects showed as late
as 2010. On the other hand, the effects of the measures taken this
year - the salary cuts, the VAT hike - were faster to reflect in
the economy," Popescu says.