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| '''Amway Australia''' is the affiliate of ] that serves Australia and New Zealand. The company began in 1971. The head office is located in the Sydney suburb of ]. Amway Australia has offices and centres across the country and currently employs over 200 staff.{{Citation needed|date=March 2011}} | '''Amway Australia''' is the affiliate of ] that serves Australia and New Zealand. The company began in 1971. The head office is located in the Sydney suburb of ]. Amway Australia has offices and centres across the country and currently employs over 200 staff.{{Citation needed|date=March 2011}} | ||
| ==History== | |||
| Amway Australia opened in April 1971 and was Amway's first market outside of North America.<ref name="Xardel">{{Cite book|last= Xardel |first= Dominique |authorlink= Dominique Xardel|title= The Direct Selling Revolution. Understanding the Growth of the Amway Corporation |publisher= ] |year= 1993 |isbn= 978-0631192299|pages=1–4 }}</ref><ref name="Cross">{{Cite book|last= Cross|first= Wilbur|authorlink= |title= Amway: The true story of the company that transformed the lives of millions |publisher= ] |year= 1999 |isbn=0-425-17040-3|pages=137–140 }}</ref>. The company launched quickly, registering more than 400 distributors in it's first month of operation, however sales soon stagnated. Investigations revealed problems with quality control at local manufacturers and the decision was made to manufacture and ship products from Amway headquarters in the US.<ref name="Cross"/> By 1993, wholesale sales had reached A$148million<ref name="b">{{cite web|archivedate=October 9, 2007|archiveurl=http://replay.web.archive.org/20071009141335/http://www.ema.co.nz/succession_planning/bill_duncan.htm|title=Succession Planning - Bill Duncan|publisher=EMA}}ref</ref>. In that year Amway Australia became part of the publicly listed company, Amway Asia Pacific, and by 1998 sales had reached A$198 million<ref name="b"/><ref name="AAP99"></ref>, with more than 100,000 distributors marketing over 2,500 products<ref name="Xardel"/>. In 2000 Amway Asia Pacific returned to private ownership. | |||
| In 1994, NSW state parlimentarian Mr Scully questioned whether Amway Australia's distribution practices were dishonest or unethical. The Minister for Consumer Affairs replied that ''"Complaints against Amway or Amway distributors are very few and indicate little cause for concern"''. Following a complaint by Amway itself, the department had prosecuted one distributor for promoting another work-at-home scheme not subject to the companies rules of conduct. | |||
| ⚫ | <ref></ref> | ||
| In March, 1998 Amway Australia launched it's first internet based ordering system (ELVIS - lectronic Link Via Internet Services), and by July 1998 it was processing nearly $16 million in sales per month.<ref name="ELVIS">{{cite news|url=http://www.cio.com.au/article/75693/we_did_it_amway/|newspaper=CIO Australia|title=We did IT Amway|publisher=]|date=November 15,2000|author=Sue Bushell}}</ref> In April 2000 ELVIS was replaced by a2k, and Amway Australia became one of the first Amway affiliates to introduce a new business model, dubbed IMC (where the "I" stands for Independent Business Owner , the "M" stands for a new Member classification, and "C" stands for Client). Along with Amway products, the new portal provided access to various partner company products, including IBM, Petals, RM Williams, Blue Star Office Supplies, and AFS Financial services.<ref name="ELVIS"/>. Thirty percent of products sold by Amway Australia come from Australian suppliers, with the rest from Amway factories in the US, Europe, and Asia<ref name="Xardel"/> | |||
| In 2003, the Australian Tax Office challenged deductions made by Amway Australia over an 8 year period for seminar expenses in luxury locations, offered as incentives to successful distributors. Amway had a partial win with the Federal Court ruling Amway was largely entitled to the deductions, however it was ruled that substantial food and drink bills associated with the seminars were not deductible.<ref>{{cite news|url=http://www.smh.com.au/articles/2003/12/21/1071941609858.html|title=Amway junkets paid by taxman|work=]|date=December 21, 2003|author=Anne Lampe}}</ref>. In 2004 this ruling was overturned and the deductions were allowed in full <ref>{{Cite news|url=http://www.easeaccounting.com/news/default.asp?cont=item&idNo=765|title=Landmark decision awards luxury tax break|work=]|date=October 13, 2004}}</ref> | |||
| By 2010, 40% of people joining Amway Australia as business owners were under the age of 30<ref name="social">{{cite news|url=http://www.theaustralian.com.au/business/media/social-networking-sites-lure-direct-sellers/story-e6frg996-1225861327521|title=Social networking sites lure direct sellers|work=]|Date=May 3, 2010|author=Simon Canning}}</ref> and the company had embraced social media such as ] and ] as part of their sales and communications processes <ref name="social"/>, as well as increasing brand marketing efforts through the engagement of brand ambassadors such as triple Olympic gold medallist swimmer ] and Australian cricket star ]<ref></ref><ref>{{cite news|url=http://kwinana.inmycommunity.com.au/news-and-views/local-business/Trickett-dives-into-new-role/7554262|title=Trickett dives into new role|work=Kiwana Courier|publisher=]|date=April 20,2010}}</ref> | |||
| On April 18, 2011 Amway Australia celebrated 40 years in business<ref name="oz40"></ref> | |||
| == Local operations == | == Local operations == | ||
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| * ] | * ] | ||
| * Emma Page Jewellery | * Emma Page Jewellery | ||
| == Controversy == | |||
| The Australian Tax Office challenged deductions made by Amway Australia over an 8 year period for deduction claims made for entire seminar expenses. In 2003, Amway Australia had a partial win with the Tax Office in the Federal Court of Australia. However, Justice Roger Gyles has ruled that substantial food and drink bills associated with the seminars were not deductible and that the Tax Commissioner was right to deny them in Amway's tax return.<ref></ref> | |||
| Amway Australia's distribution practices were questioned in Australian parliament for being dishonest, unethical and inappropriate. | |||
| ⚫ | <ref></ref> | ||
| == References == | == References == | ||
Revision as of 04:52, 22 April 2011
 | |
| Company type | Private |
|---|---|
| Industry | Direct selling |
| Founded | 1971 |
| Headquarters | Castle Hill, New South Wales, Australia |
| Key people | Marek Florczuk (Managing Director) Michial Coldwell (General Manager) |
| Number of employees | 300 |
| Parent | Amway Global |
| Website | http://www.amway.com.au/ |
Amway Australia is the affiliate of Amway that serves Australia and New Zealand. The company began in 1971. The head office is located in the Sydney suburb of Castle Hill, New South Wales. Amway Australia has offices and centres across the country and currently employs over 200 staff.
Local operations
Amway Australia has three business centres opened in Loganholme, Queensland, Castle Hill, New South Wales and Kewdale, Western Australia.
Amway Australia distributes a selected number of Amway brands. These include:
- Nutriway
- Artistry
- XS Energy Drink
- Emma Page Jewellery
Controversy
The Australian Tax Office challenged deductions made by Amway Australia over an 8 year period for deduction claims made for entire seminar expenses. In 2003, Amway Australia had a partial win with the Tax Office in the Federal Court of Australia. However, Justice Roger Gyles has ruled that substantial food and drink bills associated with the seminars were not deductible and that the Tax Commissioner was right to deny them in Amway's tax return.
Amway Australia's distribution practices were questioned in Australian parliament for being dishonest, unethical and inappropriate.