Leading direct-selling supplier Amway India said on Thursday it was looking to increase door-to-door delivery orders five times this year and would invest Rs 30 crore to strengthen its supply chain and automation. The company, which began integrating offline to online (O2O) earlier this year, said it had seen a significant shift towards online sales from 33.6% in February 2020 to over 70% percent, and plans to record up to 5-6 lakh home delivery orders per month by the end of this year.
“In recent months, we have seen a rapid change in consumer behavior, especially in retail, with people increasingly migrating to online platforms to buy. Amway has also observed a similar trend,” – Amway India CEO Anshu Budhraja said in a statement.
With online sales having doubled, door-to-door orders have risen significantly and the company expects this trend to continue, he added.
“To ensure a smooth shopping experience and smooth last mile order delivery, we are working to strengthen our supply chain and logistics.
Online platforms will be a key part of Amway India’s future strategy with special focus online, driven by trends and consumer behavior, he said.
Sharing the company’s experience in door-to-door delivery, Sanjeev Suri, Vice President of Amway India – Global Omni Channel Logistics, said, “Currently we do over 2.8 lakh of door-to-door delivery, or about 70% to 80% of our total sales, out of 1 lakh of home deliveries before March, which represents 40% of our total sales.”
This reflects a new world order in which consumers demand everything with the click of a button. The trend is particularly relevant with Indian consumers embracing e-commerce, which is expected to grow 27% to $99 billion by the year 2024, according to the latest “Global Internet: Steep E-Commerce Curve” report from Goldman Sachs.
Amway India said that it is currently working together with 18 local and national distribution partners and plans to strengthen this network by the end of 2020 by adding some of the main national logistics partners.
“The company now serves 8,000 PIN codes and aims to grow to 15,000 PIN codes by adding more national players and leveraging its network.
“Amway is also looking to add 40 percent more third-party workforce across India to support and meet online demand,” he added.
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