Connect with us on Facebook Follow us on Twitter Join our LinkedIn Group Subscribe to us on YouTube Share with us on Google+ Subscribe to our RSS feed

October 02, 2017

News in Brief

News in Brief, October 2017



Click here to order the October 2017 issue in which this article appeared or click here to download it to your mobile device.


Total Life Changes and Nucerity Announce Industry First

Fair Haven, Michigan-based Total Life Changes (TLC) and Houston, Texas-based NuCerity International announced a joint venture partnership between companies in which they will capitalize on the strengths and synergies in product offerings and operating markets of both TLC and NuCerity.

The partnership is a first in network marketing: two international companies, with combined sales approaching $250 million, coming together to market each other’s branded products globally.

“Our core competency is skincare; TLC’s core competency is health and wellness,” said NuCerity Founders Lonnie McKinney and David Dillingham. “By combining efforts we’re able to offer ‘instant impact’ products that already enjoy a track record of sales success and a history of documented results to our respective distributors and customers.”

Both companies will maximize their synergies to benefit their independent business owners. “Our shared goal is to provide each company’s distributors an opportunity to expand their markets and create successful independent businesses built on product efficacy, synergy and expertise in the direct selling industry,” said TLC Founder Jack Fallon.


UN Publishes Amway Research on Benefit of Plant Food Consumption

More and more frequently, science is suggesting that people all over the world could live healthier longer if they would eat more vegetables and fruit. Yet, despite the evidence and interventions to increase consumption, three out of four adults worldwide still don’t get recommended amounts in their daily diets.

Now, a long-time researcher on the connections between human health benefits and plant foods is advocating for better methods to understand why consumption remains so low and how to address the problem more effectively.

Keith Randolph, Ph.D., Amway Global Research & Development, presented his views on the issue in an article published by the United Nations Standing Committee on Nutrition (UNSCN) in a recent issue of its newsletter, UNSCN News. 

“Several key studies have identified dietary patterns featuring an abundance and variety of plant foods as a common characteristic in populations that experience low risk for chronic disease and exceptional healthy longevity,” said Randolph. 

Randolph went on to explain just how plants can help improve one’s nutrition. “Plants contain natural chemicals, called phytonutrients, that help to protect them against infectious microbes and environmental stresses,” Randolph said. “Research now shows that phytonutrients from plant foods perform similar beneficial and protective functions in the human body.”


Natural Disasters: Direct Selling Relief Efforts

In Recent months, three natural disasters have struck North America and the Caribbean, killing hundreds of people and causing billions of dollars in damage. Many people in the direct selling community, particularly those in Texas and Florida, were affected by these horrific events. 

In late August, Hurricane Harvey devastated the Houston area, causing catastrophic floods that claimed over 70 lives and displaced hundreds of thousands more. 

In early September, Hurricane Irma roared through the Caribbean, devastating Barbuda, St. Maarten and St. Thomas, before impacting Cuba and then coming ashore as a Category 3 storm in southwestern Florida.

On Sept. 7, an 8.1 magnitude earthquake rocked the southern coast of Mexico, just north of Juchitan. It was the most powerful earthquake to hit the country in a century and was felt by an estimated 50 million people. There were nearly 100 fatalities. 

In addition to these disasters, throughout 2017, wildfires have claimed almost 8 million acres of land, from Georgia to Washington. There are currently 2 million acres aflame across the West and Northwest, including 100 active wildfires and 41 uncontained large blazes. 

There are powerful stories of direct selling companies coming to the aid of this global community. Please go to www.directsellingnews.com to read more about this generous industry’s continuing support.


Inc. 5000: Which Direct Selling Companies Made the Fastest-Growing List?

Six direct selling companies made Inc. magazine’s newly released Inc. 5000, the annual list of the fastest-growing private companies in America. Texas-based WorldVentures, Florida-based Jeunesse Global, Arizona-based Isagenix, Ohio-based Pure Romance, and Utah-based ARIIX and Xyngular were all repeat honorees on the prestigious list.

The Inc. 5000 ranking represents a unique look at the most successful companies within the American economy’s most dynamic segment—its independent small businesses. To compile its ranking of U.S.-based, privately held companies, Inc. measures percentage revenue growth over the past three years, in this case 2013–2016. 

The 2017 ranking, unveiled online at Inc.com, is the most competitive crop in the list’s history. The average company on the list achieved a mind-boggling three-year average growth of 481 percent. To see the full Inc. 5000 list, go to www.inc.com/inc5000.

2017 RANK

COMPANY

3-YEAR GROWTH

2016 REVENUE

2016
RANKING

INDUSTRY

799

WorldVentures

565%

$880.4M

677

Travel & Hospitality

867

Jeunesse Global

518%

$1335.9 M

481

Consumer Products & Services

1581

ARIIX

249%

$150.3 M

1546

Consumer Products & Services

3098

Isagenix

106%

$924.3 M

2206

Health

3577

Pure Romance

86%

$203.2 M

4768

Consumer Products & Services

4948

Xyngular

42%

$56.1 M

4005

Health


DSEF Takes Bold Step Forward to Educate Direct Selling’s Future Leaders

The Direct Selling Education Foundation (DSEF) has supported the direct selling channel for decades with community events, academic programs, consumer awareness activities and other initiatives. In 2016, under the leadership of Chairman Dave Wentz and Executive Director Gary Huggins, DSEF took a bold step by committing to a singular focus on growing its academic programs by expanding both the scale and impact. 

The new strategy is fueled by the belief that creating deeper partnerships with the academic community—both with professors through the Fellows Program, and directly with students through resource materials—is the best way to influence the future of direct selling. The strategy is based on a new purpose statement, developed over a multi-day planning session with both leaders from direct selling companies and academics. It reads: The purpose of DSEF is to engage, equip and empower educators to provide students with an accurate understanding of the channel as a powerful go-to-market strategy, distribution model and entrepreneurial option, and to teach the correct principles of direct selling.

The strategy also includes ambitious goals over the next three years, such as establishing partnerships with 200 professors through the DSEF Fellows Program and reaching more than 60,000 students per year with classroom content, research and campus programs. The new focus has already generated much interest, with more than 89 professors from universities across the country participating as Fellows and reaching more than 10,000 students, a number expected to double in the coming academic year.

 “Our goal is to ensure that college students understand the direct selling path to market and micro-entrepreneurship opportunity,” Huggins says. “Equally important, we’re also partnering with influential academics to produce data-driven validation of direct selling as a viable channel through original research and publishing.”

The DSEF Fellows already have several research projects underway, including those on socio-economic impact, reasons why people join, stay or leave direct selling, student attitudes and knowledge about the business model, success drivers of high performers, and satisfaction rates of independent contractors compared to franchisers. 

DSEF Funds Award-Winning Paper

At the 2017 Global Sales Science Institute (GSSI) Conference held in June in Mauritius, Africa, Julian Allendorf (Ph.D. Candidate, Institute of Marketing, University of Muenster, Germany) received the GSSI 2017 Best Doctoral Student Paper Award for his paper on “Direct Selling Distributors – Why Do They Stay or Leave!” developed through a grant and data provided by DSEF. The prize-winning paper is based on Allendorf’s joint work with DSEF Fellows Dr. Anne T. Coughlan, Ph.D. (Northwestern University) and Dr. Manfred Krafft (University of Muenster, Germany), and demonstrates how DSEF’s academic partners are producing data-driven research that validates the channel. 

The authors analyzed a unique dataset of over 13,000 individual direct selling distributors from 68 firms. Coughlan and Krafft used regression analysis to determine which factors are most likely to have a positive or negative impact on the decision to stay versus the decision to leave. The drivers of income identified in the study, also called predictor variables, are consistent with those used in academic research and the long history of research on selling. 


Epicure Marks 20-Year Milestone in Business

Epicure Selections, the Canadian food and cookware company, is celebrating its 20th anniversary.

To mark the milestone, the direct sales company recently staged its national conference in downtown Victoria, British Columbia. More than 800 people attended the event to recognize the family business that was founded by Sylvie Rochette in 1997.

Rochette, who is still active in the company, and her daughter, CEO Amelia Warren, are helping time-starved families to share good food, eat healthier and live better. Epicure, which is headquartered in North Saanich, has a salesforce of 10,000 spread across Canada and brings in more than $50 million in revenue annually.

“We are excited,” said Warren, who has held the CEO position for the past seven years. “We are growing. We are grateful to be doing business on Vancouver Island and Victoria.”

Rochette began the company by selling blends of spices at a country market. In 2007, she created the direct-sales operation. 


Oriflame Achieves Double-Digit Growth in Q2 2017

Switzerland-based Oriflame Cosmetics, the direct seller of cosmetics and beauty products, announced financial results for the second quarter of 2017. Local currency sales increased by 11 percent and Euro sales increased by 12 percent to €347.6 million (€309.6 million).

For the three months ended June 30, 2017:

  • EBITDA amounted to €47.9 million (€40.6 million).
  • Operating margin was 11.7 percent (9.9 percent), favorably impacted by 40 bps from currencies, and operating profit was €40.5 million (€30.8 million).
  • Net profit was €19.9 million (€18.1 million) and diluted EPS €0.35 (€0.32), negatively impacted by a one-off translation reserve loss on exchange rate of around €3 million. 
  • Cash flow from operating activities was €33.9 million (€35.8 million).

 “We are pleased to report double-digit growth in both Euro and local currency with healthy profitability improvements and a strong financial position,” said CEO Magnus Brännström. “During the quarter, our strategic priorities continued to serve as important drivers of growth.” 


Direct Selling Expansions in the Third Quarter

New Markets

  • Ambit Energy, Japan
  • LifeVantage, Germany
  • Mary Kay, Peru
  • Organo – The Netherlands, Belgium, Germany, Spain, France,
  • Italy, Czech Republic, Poland, Austria, Slovenia, Hungary, Ireland, Greece, Cyprus, Portugal, United Kingdom, Slovakia and Romania
  • WorldVentures – Guam, Jamaica, Latvia, New Zealand and Uganda

New Facilities

  • doTERRA, third phase of corporate campus expansion, Pleasant Grove, Utah
  • doTERRA, Fulfillment Center, Lindon, Utah
  • Vemma, European headquarters, Austria