O'Reilly logo

Amway Forever: The Amazing Story of a Global Business Phenomenon by Kathryn A. Jones

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Countering Critics in Korea

Recruiting may have been easy because Asian cultures tended to place a lot of faith in relationships with families and friends, but some of the countries still proved to be very difficult markets to enter. Laws varied and were quite different from those in the United States. When Amway set up an affiliate in South Korea in May 1991, for example, it ran into perception and cultural problems. In 1993, its manager in Korea, David Ussery, was briefly imprisoned after being charged with violating a law by not properly training distributors. He was found guilty, and Amway was fined $100,000. Then, in March 1997, the company came under attack by consumer groups and environmental activists who claimed Amway’s leading detergent, Dish Drops, was not environmentally friendly as the company claimed.

They also contended that Amway overcharged Korean consumers for soap and that it improperly used relationships between friends and neighbors to sell its products. The accusations hurt; at the time, Korea was Amway’s third-largest market. The campaign against Amway damaged its reputation in the country. Critics formed an Anti-Amway Committee that created so much vitriol the company experienced a 64 percent drop in its business in South Korea as sales plunged and half of its distributors stopped selling Amway products. The former general secretary of the South Korean National Council of Consumer Protection Organizations, You Jin Hee, went as far to say that Amway was “not ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required