March 21, 2012
Direct Selling’s Big 6: How Profitable Are They?
The recent release of 2011 earnings statements for the world’s six largest direct sellers— Avon, Herbalife, Natura, Nu Skin, Oriflame and Tupperware—showed that Herbalife, the U.S.-based global seller of weight-management, nutritional supplements and personal-care products, had an increase of 26 percent in sales growth in the past year. However, if viewed over a five-year period, the clear winner was Natura, the Brazilian cosmetics giant, with a 103 percent increase over that time.
But what about profitability, which is just as important to a company as its sales growth? Again, Herbalife took the top spot with a 45 percent increase in profitability in 2011. However, it was Nu Skin, the American direct seller of personal-care products and nutritional supplements that saw the greatest jump over a five-year period, generating a 327 percent increase.
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