However, despite these efforts, returning to positive growth within home care will be a challenge in mature markets such as the US, Germany and Japan, which are characterised by highly developed retail networks, where consumers typically purchase home care products as part of their grocery shopping, and where Amway faces major difficulties to compete with widely distributed (and lower priced) rival brands.
In April 2010, Amway announced changes to its supply chain structure in order to move some production closer to its customers, cut supply times, reduce shipping costs and improve its competitive position. According to the company, such supply chain adjustments have been necessary as 80% of its products are sold outside the US. Over the next three years, Amway plans to move production of several smaller product lines to Europe and Asia in order to be closer to consumers.
