Current problems are reminiscent of the years 1998-2000, whenbig foreign investors were only starting to enter the Romanianmarket, believes George Popescu, branch manager of Amway Romania, acompany present on the direct sales market and number two on thedirect sales cosmetics market after Avon.
"Perhaps only the early period of Amway, from 1998 to 2000 wastougher than this year. In the summer, the sales curve deepenedbecause the austerity measures imposed by the government overlappedwith the holiday period, when people are no longer willing to buyor do any other activity that direct sales entail," George Popescutold ZF.
The company estimated a 23.8 million-euro (100 million-RON)turnover for this year. In 2009, the company posted 27.7 millioneuros (116 million RON) in turnover, down by around 25% on theprevious year, partly because of the euro depreciation.
"It is true that 2009 was the first year of financial crisis, butthe measures taken then were latent, their effects showed as lateas 2010. On the other hand, the effects of the measures taken thisyear - the salary cuts, the VAT hike - were faster to reflect inthe economy," Popescu says.
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