Competition between Amway Korea and Atomy Korea is heating up in the Korean direct sales market. Atomy, a homegrown multi-level marketing company, is catching up with Amway based on the popularity of Hemoim.
Amway Korea’s sales hit 1.13 trillion won in 2019, down about 3 percent from 1.17 trillion won in 2018, according to an audit report registered on the electronic disclosure system. Its operating profit and net profit stood at 78.29 billion won and 51.14 billion won, respectively, down from 100.09 billion won and 76.89 billion won in 2018.
In 2019, Atomy Korea’s sales hit 1.13 trillion won, only 1.1 billion won less than Amway Korea’s. Total sales of direct sales companies include incentive allowances given to its members. Atomy was ahead of Amway for the first time when incentive allowances are excluded. Atomy’s individual sales in 2019 rose 15 percent on year to 754.9 billion won, exceeding Amway Korea’s 741.3 billion won. It marked the first time that Atomy’s annual sales surpassed those of Amway Korea.
The domestic direct sales market has been dominated by multinational companies such as Amway, Nu Skin, and Herbalife. In particular, Amway Korea has reigned as a solid leader in the Korean direct sales market.
In terms of operating profit, Atomy’s growth is even more notable. Last year, direct sales companies all suffered a drop in operating profit, but Atomy recorded a much smaller drop of about 3 percent than Amway Korea’s 22 percent. Atomy’s operating profit hit 105.4 billion won in 2019, outweighing Amway Korea’s 78.3 billion won.