Pinckney spends a lot of time with the business owners, travelling to see them, talking to them about Amway’s set-up and learning how to improve the business: “I’m on the road eight to 10 days a month. You need to go where your business is.”
When Pinckney moved to India, he already had 17 years of experience with Amway. Though originally from Washington, Pinckney settled in Australia when he met his wife there as “she thought it was a good idea if I stayed there”. From Sydney, he helped set up Amway businesses in the Philippines, Brazil, Argentina and Taiwan, but hoped to be permanently posted abroad. When India came up, “nobody really wanted it”. They feared a nuclear war breaking out between Pakistan and India. But for Pinckney and his wife, it was good timing. His son and daughter were away in school and Pinckney and his wife “were looking for adventure. You look back on decisions you’ve made and say ‘wow’”.
There was another motivation for the move: “We thought if we go to India, we’ll both lose weight,” Pinckney chuckles. “This part of the plan was a huge disaster: This is the worst place in the world to try and lose weight! I could just eat Indian food 24/7.”
The losing weight challenge wasn’t the only obstacle Pinckney has come across in his 10 years here. “I realized it was not to try to change India for me, but me changing for India,” Pinckney says. The first obstacle came in the form of import restrictions on Amway products. Everything had to be manufactured within India. It took about three years to set up the manufacturing side of the company. Then, when the company launched, another quick realization set in: Indians shop differently from people elsewhere in the world.
“Our belief was that in India, as in other countries, we would set up a home delivery model. That’s how Amway works in most parts of the world. Eighty per cent is home delivery, 20% is pick-up products.” But in India, Amway realized that buyers weren’t comfortable paying up first and then waiting three days for a delivery: “Trust in who you buy from is a big deal.”
Therefore they had to rework their product distribution set-up completely. “Australia had one warehouse for distribution. India has 127.”
But that same trust in the seller helped develop networks quickly, discovered Pinckney. “In Asia, you see close-knit families; you don’t see it that much in the US,” Pinckney explains. “Here, if you say Amway’s okay, I say it’s okay. In the US, if you say Amway’s okay, I say prove it.”
Amway also had to adapt its products to meet Indian standards. Elsewhere, products came in one size. But people here were used to trying out products, and wanted sample-size sachets. Rather than drop the prices to lure people, Amway launched a series of smaller sizes for less money. Finally, it developed localized products, marketing cosmetics specifically geared to the country’s preferences, such as coconut oil and hair cream.
The challenges, though, have been part of the excitement for Pinckney. “The other markets are boring compared to India!” he laughs. “It’s frustrating, but on the other hand it’s invigorating.”