August Direct Selling News 2021

DSN

DIRECT SELLING NEWS

VOLUME 17 / ISSUE 8

AUGUST 2021

Billion Dollar Markets SIMPLICITY MATTERS / BUILDING AN E-COMMERCE SYSTEM NATURA &CO

+ AVON / STRENGTH IN NUMBERS

GLOBAL ATOMY / SHUTDOWN LEADS TO NEW OPPORTUNITIES

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C O N T E N T S A U G U S T

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Simplicity Matters B Y N OA H W E S T E R LU N D & H E AT H E R M A R T I N

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SPOTLIGHTS

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Strength in Numbers B Y C O U R T N E Y R O U S H

Global Atomy Taking Off:

Shutdown Leads to New Opportunities

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I N EV ERY ISSU E 8-9 AD INDEX // 11 FROM THE EDITOR // 13 INDUSTRY NEWS // 36 FORWARD THINKING // 91 DSA MESSAGE // 92 SUPPLIER DIRECTORY //

AUGUST 2021

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DIRECT SELLING NEWS

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COVER STORY

2020 BILLION DOLLAR MARKETS

BY BETH DOUGL ASS SILCOX

Direct Selling News (ISSN 15546470) is published monthly by SUCCESS Partners, 5800 Democracy Drive, Suite 100, Plano, TX 75024. Periodicals postage paid at Lake Dallas, TX and additional mailing offices.

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/ FROM THE EDITOR /

Global Insights and Lessons from 2020!

EACH YEAR, WE LOOK FORWARD TO BRINGING YOU AN ANALYSIS of the World Federation of Direct Selling Associations’ Global Sales data report. The report for 2020 was a wealth of information. For our cover story, writer Beth Douglass Silcox identifies the 23 global markets with sales of $1 billion or more from direct selling. Then, she takes a deep dive into the 2020 numbers to extract the impact our industry is having on economies worldwide and reveals some insights for the future.

To continue growing in this global economy, direct selling companies must make it easy on the customers. In the Simplicity Matters article found on page 44, industry expert Noah Westerlund explains the business case for building an easy-to-use e-commerce system.

In keeping with the international and global impacts, we were thrilled to get the opportunity to speak with João Paulo Ferreira, President and CEO of Natura &Co and Angela Cretu, Global CEO of Avon. In our Strength in Numbers feature found on page 66, you can learn about the acquisition and their passion to create a ‘wave of change’ in the world. “We won’t lose the identity of the individual brands, but we come together to do good for society,” states Ferreira.

The feature article on page 78, Global Atomy Taking Off, explores how the shutdown has led to new opportunities and growth for Atomy. “It is very important to realize that direct selling can win with quality and price over discount stores, online retailers, and other platform businesses,” says HanGill Park, Atomy Chairman. Read about how they quickly transitioned online and secured a competitive advantage in distribution.

Our working smart article on page 86 gives you insights on COVID-19 Global Business and Logistics. Michael McClellan shows us how to learn from the businesses that succeeded during the pandemic and how to be prepared for the next big challenge.

At DSN, we strive to bring you more!

Make sure you are tuning in to our DSN Podcasts. We have the Executive Insights Series, the Direct Approach with Wayne Moorehead series and more. So please check out directsellingnews.com/listen-watch-category/podcast/.

August kicks off our annual Best Places to Work nominations. Best Places to Work in Direct Selling celebrates the important role companies play as employers in the marketplace and highlights companies setting the bar for establishing and nurturing work experiences and environments that bring out the very best in people.

The company nominations are open until October 22.

You can nominate your company or learn more at directsellingnews.com/achievements/best-places-to-work/.

Please watch for details and make plans to attend (virtually or in-person) our Fall Direct Selling University event.

We are putting together the most influential, knowledgeable and exciting speakers for our first-ever hybrid event on October 14 & 15.

At Direct Selling News, we endeavor to be a source, resource and thought leader for the entire direct selling channel. So, if you have a suggestion, a need or an inspiration to share, please reach out. We would love to hear from you.

All the best,

Pa t r i c i a W h i t e | E d i t o r | pw h i t e @ d i r e c t s e l l i n g n ew s . c o m @directsellingnews

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/ INDUSTRY NEWS /

The Month in News Affecting Our Channel 14 / Events 16 / News In Brief 20 / Insights 22 / Executive Announcements 26 / Direct Selling Capital Advisors Stock Watch 30 / DSN Digital Momentum Index 32 / Customer-Centric Recognized Companies

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E V E N T S

Color Street was thrilled to host the Pave the

was one to remember.

4

EVENTS

Way National Conference. This year’s big event

SeneGence

SeneGence® CEO & Founder Joni Rogers-Kante hosted SeneStar 2021 on the Kona Coast of Hawaii.

“W

HAT AN elation it’s been for our Leaders, their husbands, and even their children to finally have the ability to hug and laugh again with one another,” Rogers-Kante stated. “Honestly, I think it would not have mattered at all where we met up, it was just the fact that we enjoyed one another’s presence during our adventures together. The love was palpable.”

The Make Sense Foundation (MSF) partnered with Charity Miles and challenged all the SeneStar Achievers to walk, run, bike, or otherwise move 100 miles in 60 days. With every mile completed, MSF will donate with all proceeds benefiting Action for Healthy Kids.

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Color Street

4

OMING OUT of a year of uncertainty, Color Street was thrilled to host the Pave the Way National Conference, its first in-person event post-pandemic! With 4,000 Stylists who attended the event in person and 25,000 Stylists who attended virtually, this year’s big event was one to remember.

The two-day Conference featured specialized trainings, recaps of the accomplishments of the last year, and recognition for both 2019 and 2020 achievement years. Color Street was also excited to announce incentives and promotions for the upcoming year, the Color Street Foundation’s 2021‑2022 charitable giving calendar, and thrilling new product launches.

At SeneStart 2021, the Make Sense Foundation (MSF) partnered with Charity Miles to benefit Action for Healthy Kids.

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AUGUST 2021

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/ INDUSTRY NEWS /

N E W S

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NEWS IN BRIEF

For the full articles, visit directsellingnews.com/ category/news/

Scentsy Named the Official Home Fragrance of Walt Disney World Resort

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centsy has entered into a multi-year partnership with the Walt Disney World Resort in Florida after almost three years of a licensed product arrangement with The Walt Disney Studios.

In this partnership, Scentsy will be designated as the Official Home Fragrance of Walt Disney World Resort and the two organizations will work together to create a new guest experience within the Fantasyland area at Magic Kingdom Park, where Scentsy will help create rich storytelling opportunities through fragrance. DSN

TINA Lobbies FTC to Target Direct Selling Industry with PenaltyOffense Program

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he advertising watchdog group TruthInAdvertising (TINA) sent a letter to the Acting Director of the Bureau of Consumer Protection at the Federal Trade Commission (FTC), requesting that the FTC “implement a penalty offense program targeting the direct selling industry and its market-wide practice of utilizing deceptive earnings representations and false health claims.”

The letter also included a list of 660 direct selling companies operating in the U.S., including their contact information, that TINA asked the FTC to use to provide them with “actual notice of the law” and to “eliminate any claims of ignorance” so that “civil penalties may be imposed against lawbreakers.” DSN

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Mary Kay Global Initiative Works to Reduce Barriers on Women’s Entrepreneurship

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he Women’s Entrepreneurship Accelerator, a global multi-partner initiative launched by Mary Kay Inc. in 2019, joined the Generation Equality Forum in Paris through the “Drivers of Change” Program. The Generation Equality Forum was assembled by UN Women and co-hosted by the governments of Mexico and France.

Virtual engagement of the forum included 50,000 people, gathering 1,000 commitment-makers and recording $40 billion of investments for gender equality which will support a five-year plan to act for equal across seven areas of action.

“We believe that gender-responsive procurement can make an enormous impact which accelerates the inclusion of women-owned businesses throughout the supply chain,” said Julia Simon, Chief Legal & Diversity Officer at Mary Kay Inc. “The Accelerator encourages the public and private sectors to make inclusive procurement a priority and drive the systemic change that women need. Supporting women entrepreneurs is critical for sustainable growth.”

At the event, the Accelerator committed to empower 5 million women by the end of 2030 by “alleviating the main economic and social roadblocks faced by women entrepreneurs,” and corporations in attendance made substantial investments toward the empowerment goals. DSN

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L’Occitane Says LimeLife Is its FastestGrowing Brand

Beautycounter Leads Two-Day Virtual Lobbying Event for Cosmetic Reform

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eautycounter continued its advocacy efforts in the charge to seek cosmetic reform during two days of virtual lobbying with key Senators and Representatives.

Joining the beauty brand were members of the company’s Scientific Advisory Council and a group of businesses led by Beautycounter who work together to pass health-protective laws in the beauty industry, called the Counteract Coalition.

“Beautycounter believes in the power of advocacy to change our country’s outdated laws in order to better protect consumers,” said Gregg Renfrew, Beautycounter Founder & CEO. “Consumers deserve federally regulated, health-protective safety standards, and I’m proud to work with our coalition of clean beauty brands as well as leaders in public health policy and medicine to push for change.”

With Beautycounter’s help, ten pieces of legislation have been passed, with dozens more in process. DSN

Seldia Updates Code of Conduct

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eldia, the European Direct Selling Association, has made updates to its European Codes of Conduct for Direct Selling. The Seldia General Assembly adopted a revised version of this code, as well as a guide to help members as they seek to implement the 2021 codes.

These updates build upon the preexisting guidance from enforcement authorities and advertising self-regulatory organizations, both in Europe and beyond. Specifically, the guide aims to address direct selling and social media.

European Direct Selling associations will have until the end of the year (December 31, 2021) to transpose new codes provisions locally. DSN

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he international group credits social selling with its successful transition to online sales during the COVID-19 pandemic.

When the COVID-19 pandemic hit, L’Occitane’s retail sales took a drastic hit. Social distancing and public health concerns led the company to temporarily close 75 percent of its brick-and-mortar stores, leaving L’Occitane with a significant sales deficit and obstacles that are even more substantial in a category that relies on human interaction with the product for sales.

But in its annual report for the year ending March 31, 2021, L’Occitane credits social selling with its successful pivot to online sales and its resulting profit rebound. The company’s online channels expanded 69.2 percent and accounted for more than one-third of the group’s total sales. It was social selling, the report says, that enabled it to “maintain and strengthen its human approach to beauty despite the need for social distance.”

Of its six brands, L’Occitane revealed that LimeLife, its direct selling arm, was the group’s fastest-growing brand, posting consistent sales growth of 25.7 percent during the year. LimeLife’s online-only and social media-based model were some of its greatest strengths during the challenges of the pandemic and led to what the report describes as “solid profit contribution.”

“Our resilience and adaptability in the face of the incredible challenges of COVID-19 has seen our business blossom in terms of its development and profitability,” said Mr. Reinold Geiger, Chairman and Chief Executive Officer of L’Occitane. “This is a credit to the solidarity and passion of our teams around the world. While the impacts from COVID-19 may still linger, we expect online sales and sales in high growth Asian markets to remain robust. With the inherent strength of our brands, the determination and focus of our management team, as well as our targeted investments, we believe we have laid a strong foundation to accelerate growth and expand profitability further in the coming years.”

L’Occitane’s emphasis on social selling was seen most clearly in Europe, where it rolled out 68 social selling projects. The company’s overall net profit for the year increased 36.3 percent to a record €157 million. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 1 7

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Arbonne Launches Sustainable Haircare Line

Plexus Study Shows $1.15 billion GDP Impact on Global Economy

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lexus conducted a study analyzing its operations in Arizona, Mexico, Canada and Australia. The new independent study by the L. Seidman Research Institute at Arizona State University looked at employment, labor income and contributions to GDP. “Our products, team members, and ambassadors are the foundation of these goals, which is why we are committed to the highest standards of quality,” said Tarl Robinson, CEO and Founder of Plexus. “Thanks to our hardworking leaders and employees, and in a year like no other, Plexus was able to grow and have a real impact on economies at the local, national, and global communities where we operate.”

Highlights of the 2020 economic impact study include: • $1.15 billion GDP impact on the global economy • $1.1 billion GDP impact on the U.S. economy • $128.5 million GDP impact on the state of Arizona • $791.6 million in U.S. labor income • 8,593 U.S. jobs supported • $26.8 million in sales tax revenues to state and local governments, responsible for $59.1 million GDP, 619 jobs, and $41.9 million labor income in the U.S. economy • Total compensation of distributors in Mexico was $12.4 million, and Plexus’ total economic impact in Mexico in FY2020 was $24.4 million GDP, including 385 jobs • Total compensation of distributors in Canada was $6.7 million, and Plexus’ total economic impact in Canada in FY2020 was $14.2 million GDP, including 79 jobs • Total compensation of distributors in Australia was $1.4 million, and Plexus’ total economic impact in Australia in FY2020 was $4.1 million GDP, including 25 jobs The study found that the state of Arizona is the main beneficiary of Plexus’ direct U.S. operations for total employment, employee compensation and total vendor purchases. DSN

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rbonne announced the launch of its new TrueSmooth Collection, its first sustainable haircare line.

The TrueSmooth Collection packaging supports Arbonne’s goal of having 100 percent circular economy products by 2025 with infinitely recyclable aluminum bottles and recyclable pumps. The haircare system’s plant-based formulation features Provitamin B5 and an apple vinegar hair rinse to repair damaged hair and enhance shine. DSN

DSRRC Gains Recognition with ICAS Global Award

T

he BBB National Programs was honored by the International Council for Advertising SelfRegulation (ICAS), winning the ICAS Global Award for Best Sectoral Initiative for the Direct Selling Self-Regulatory Council (DSRRC).

The ICAS Awards recognize best practices within self-regulatory organizations around the world by rewarding those who exemplify ethical standards in advertising and marketing and create an effective and high-impact self-regulatory system.

This particular category honors organizations with initiatives that offer tangible results through innovation, are globally relevant and efficiently use available resources. DSN

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Announcing DirectScale Fast Growth App ™

Empower and motivate your independent sellers with the all-new DirectScale Fast Growth™ app!

This ultimate command center helps them sell more effectively so your business grows every month. It helps fill their funnels with warm leads and automatically tracks each prospect’s progress.

Call, click or scan today to see how Fast Growth will help you run, know and grow your business faster.

(801) 960-4186 or directscale.com/DSN

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INSIGHTS

FTC to Review Business Opportunity Rule

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he Federal Trade Commission (FTC) announced in a Statement of Commissioner Rohit Chopra that it will begin looking for other methods to seek restitution or disgorgement from companies in the wake of the U.S. Supreme Court ruling that the Commission could not do so using Section 13(b) of the FTC Act. The FTC has relied on Section 13(b) for more than four decades as a means to enact injunctions and extract monetary damages from companies without the administrative and court processes required in Sections 5 and 19 of the FTC Act. “Last month, the Supreme Court ruled that the Federal Trade Commission cannot seek restitution or disgorgement from lawbreaking firms through Section 13(b) of the FTC Act. However, Section 13(b) is not the FTC’s only tool. It is long overdue for Commissioners to take steps to use other authorities that allow the agency to make victims whole and that deter misconduct in the first instance,” the statement read.

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The Commission’s predecessors are described in the statement as leaders who “largely ignored decades of directives and authorities that Congress provided to protect consumers, workers and honest businesses,” and announced that the Commission will begin a review of the Business Opportunity Rule as its first step in finding methods to seek civil penalties, damages and other relief against violators.

The statement points to previous votes by Commissioners to exempt multilevel marketing companies and their representatives from the Business Opportunity Rule’s requirements, but makes it clear that the current Commission plans to codify prohibitions and “seek restitution and penalties against multilevel marketers, gig economy platforms, and others who cheat workers and entrepreneurs through false earnings claims, without imposing any new obligations on honest businesses.” DSN

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E X E C U T I V E

A N N O U N C E M E N T S

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EXECUTIVE ANNOUNCEMENTS

Gina Stevenson

Rajan Sachar

Jeff Kalinin

Oola Global, Chief Sales Officer Oola Global launched as a direct selling eLearning platform.

This new personal development eLearning platform includes the leadership of industry veteran Travis Ogden as CEO and Co-Founder and the recent announcement of Gina Stevenson who will join the company to lead its independent salesforce, oversee leadership development, recognition, events and customer service as Chief Sales Officer.

“Gina has extensive experience not only in sales and development but also in the network marketing industry,” Ogden said. “Her familiarity working in both the field and corporate side of the network marketing industry gives her a unique perspective. We are thrilled to add her powerful talent to our team.”

Sunrider International, Chief Financial Officer Sunrider International appointed Rajan Sachar to the role of Chief Financial Officer.

“We are so grateful to have Rajan as a part of our executive team here at Sunrider,” said Sunrider CEO, Sunny Beutler. “Already, he has proven to be an exceptional leader with an exciting vision and strategic plans for improving our financial operations.

I believe Rajan will be integral to the growth and sustained success of our company.”

“I look forward to working with the team to execute on the company’s priorities, build on the momentum, accelerate growth, and enhance value for our stakeholders,” Sachar said.

4Life, Chief Global Officer 4Life announced it has selected Jeff Kalinin as its first-ever Chief Global Operations Officer. Kalinin has been with the company for more than two decades, serving as Director of IT, Vice President of IT, Vice President of International and then Senior Vice President of International, where he was tasked with operational responsibilities across all markets outside of the U.S. and Canada.

“Jeff has proven himself time and again,” said 4Life CEO Danny Lee. “His new role as Chief Global Operations Officer will provide us with a vertical harmony between northern North America and our 24 international offices.”

In this newly created role, Kalinin will oversee marketplace operations and the company’s worldwide sales teams.

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AUGUST 2021

7/21/21 5:24 PM

Introducing the DSN Dashboard.

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Curated specifically for busy direct selling executives.

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7/22/21 10:42 AM

/ INDUSTRY NEWS /

E X E C U T I V E

A N N O U N C E M E N T S

Leah Cadavona Ruby Ribbon, Chief Growth Officer Ruby Ribbon announced the appointment of Leah Cadavona to the position of Chief Growth Officer.

In her new role, Cadavona will help empower and expand the company’s network of distributors and will bring her experience in marketing, brand, strategy and the direct selling channel to support female entrepreneurs.

“I’m excited to join a company that is passionate about creating a better place for all women,” Cadavona said. “It’s about time! The future is female, and I look forward to helping drive the growth of this fantastic organization that is committed to women of all shapes, sizes and shades.”

“We are thrilled to welcome Leah into the Ruby Ribbon family,” said Ruby Ribbon CEO Clint McKinlay. “Leah is a globally respected leader in social selling channels, known for driving strategic growth at several household name beauty and wellness brands. Her alignment to our vision of empowering women at scale, together with her channel know-how and collaborative approach, will help fuel Ruby Ribbon’s continued growth into 2022 and beyond. Under Leah’s leadership, Ruby Ribbon’s brand promise will come alive for our Stylists as never before.”

Janay Standifird Oola Global, Chief Financial Officer Oola launched as a direct selling eLearning platform. Travis Ogden, Co-Founder and CEO joins the company’s co-founders Dr. Dave Braun and Dr. Troy Amdahl.

The company’s announced that Janay Standifird will oversee and manage the company’s financial planning and reporting as Chief Financial Officer.

“Adding Janay to our executive team was a natural decision,” Ogden said. “She has a strong reputation, and I look forward to her serving as a catalyst for our business, our independent ambassadors, and our customers. She is a true all-around partner, and we are fortunate to have her join our team.”

“Joining Oola and another female on the senior leadership team is an honor,” said Standifird. “Throughout my career, I have been a strong supporter of women in business as I believe women collectively have the biggest impact.”

Nature’s Sunshine, Board of Directors Nature’s Sunshine appointed Tariq H. Hassan to the company’s Board of Directors, where he will serve on the Audit Committee.

“Tariq is a proven executive with extensive experience implementing effective growth strategies for global brands,” said Terrence Moorehead, President and CEO of Nature’s Sunshine. “We believe Tariq’s wealth of knowledge in consumer marketing and digital implementation will be invaluable in assisting our efforts as we continue the transformation of our business. We look forward to his contributions to the board.”

Hassan has extensive global leadership experience, including 25 years in senior management, global brand strategy, communication and international assignments.

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Chase Holm, Trevor Luke and Dave Nash 4Life, Vice President Promotions Dave Nash will move from Vice President of Greater China to Senior Vice President of Global Markets. In this new role, Nash will continue his efforts in Asia, but will now also broaden his focus to include global sales and operations under the leadership of Chief Global Operations Officer Jeff Kalinin.

Chase Holm has been promoted from Senior Director to Vice President of Global Operations. Holm has worked with 4Life since 2005, and has previously held multiple titles, including Customer Service Agent, International Coordinator, Premier Services Manager, Director of Customer Service Operations and Senior Director of Global Operations.

Trevor Luke has been working as the Senior Director and will now take on the title of Vice President of Global Markets.

Prior to this new role, Luke served as the International Coordinator for the Brazil market and Senior Director of International for Southeast Asia, during which he relocated his family to Kuala Lumpur, Malaysia.

“Each of these three individuals has shown great skill, determination, and commitment during their time at 4Life,” said 4Life President and CEO Danny Lee. “No task has been too big or small for them to take on and resolve. I’m excited by the opportunities that 4Life offers employees in general, and I’m happy to see Dave, Chase, and Trevor continue to excel.”

Donnellyn Dominguez, Roberto Volpe and Javier Hernandez Covarrubias ASEA Adds Three New Members to its Medical Professionals Board ASEA announced the addition of Donnellyn Dominguez, LM, CPM; Roberto Volpe, M.D., Ph.D.; and Javier Hernandez Covarrubias, M.D., to its Medical Professionals Board. Dominguez, Volpe and Covarrubias join 16 existing board members.

“We are strengthening our scientific counsel with the addition of these experts to ASEA’s Medical Professionals Board,” said ASEA Founder Tyler Norton. “Donnellyn, Roberto, and Javier recognize the importance of the scientific impact of our redox technology and will move the company further towards mass-market adoption.”

Dominguez is an experienced midwife who owned and operated one of the largest birthing centers in Texas.

Volpe is a medical researcher at the Italian National Research Council in Rome, and an expert in dietary treatment, nutraceutical treatment, and lipid-lowering therapy in addition to preventive cardiology.

Covarrubias is an allergy expert, has studied integral medicine for mental health treatments, and specializes in environmental medicine and otolaryngology. DSN w w w. d i r e c t s e l l i n g n e w s . c o m 2 5

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7/21/21 5:25 PM

/ INDUSTRY NEWS /

S T O C K

W A T C H

DIRECT SELLING C A P I TA L A D V I S O R S DIRECT SELLING STOCKS CONTINUE TO OUTPERFORM BROADER MARKETS

M

AY BROUGHT an incredible rush of growth for direct selling stocks (+18.4 percent), and the Direct Selling Capital Advisors Direct Selling Index (DSCI) added 2.2 percent more in June. This increase is slightly above the Dow Jones Industrial Average (DJIA), which grew by 1.9 percent. eXp World Holdings, Inc. (NASDAQ: EXPI) carried much of this positive momentum, with a 20.2 percent gain. Twelve of the 16 individual stocks in the index did decline, which was expected given May’s blistering performance. The DSCI continues to set record highs, up 115.6 percent since the tracking period began on March 1, 2020. The DJIA gained 35.9 percent during this same time period, showing the DSCI to significantly outperform the broader market. On a year-to-date basis, DSCI gained 36.4 percent, compared to 14.2 percent for the DJIA. After moderate profit-taking by most direct selling stocks last month, muted stock price movements are now expected for July. Second quarter earnings reports will be the next key event to consider, and most will likely be released in early August.

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“First-quarter year-over-year earnings comparisons for direct selling stocks were fairly easy, as first quarter 2021 reflected a boost from pandemic trends while those factors played no role in the first quarter of 2020 results,” said Stuart Johnson, Direct Selling Capital Advisors CEO. “However, those trends were largely reflected in consumer behavior by the second quarter of 2020. Consequently, second quarter of 2021 earnings comparisons should prove more challenging than in Q1 2021, but we still expect the companies comprising our large cap tracking set, as a whole, to report strong second quarter revenue and earnings results.”

LARGE CAP STOCKS Three of the eight members of the large cap direct selling stocks tracking set advanced in June, while the others declined, reflecting the uneven nature of the index. All eight companies, however, have outpaced the DJIA since March 2020.

A notable event within this group was the merger of the Beachbody Company Group, LLC with Forest Road Acquisition Corp. (NYSE: FRX), a special purpose acquisition company (SPAC) that also includes Myx Fitness Holdings,

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After moderate profit-taking by most direct selling stocks last month, muted stock price movements are now expected for July.

LLC. This new combined company will operate under the name The Beach Body Company, Inc. and will trade on the NYSE under the symbol BODY. The company’s stock closed at $12 per share on June 25 with an implied market capitalization of around $3.65 billion. Beachbody’s first quarter financial summary also included summary results for Myx, and on a consolidated basis, the company reported revenue of $243.3 million for the quarter—a 43 percent increase year-over-year. Total 2021 revenue for BODY is expected to exceed $1 billion. Beginning next month, BODY will join the DSCI large cap tracking set. n Medifast, Inc. (NYSE: MED) rose 46.3 percent, driven by the company’s first quarter financial results announcement, which included revenue growth of 91 percent, year-over-

year. At the end of May, MED stands up 318 percent since tracking began and includes gains of 73.6 percent in 2021 year-to-date, making it the clear leader in the group. n Betterware de Mexico (NASDAQ: BWMX) gained 15.2 percent in June and stands 51.1 percent higher since the beginning of the year, and 431 percent higher than when it began trading in March 2020. The company’s sharp rally in June was likely a reflection of long-term investors factoring in strong first quarter earnings results. Betterware de Mexico serves 3 million households in approximately 800 communities in Mexico. n Tupperware Brands Corporation (NYSE: TUP) continued its decline (-7.4 percent) during the month after astounding 2020 gains of approximately 800 percent. Year-to-date, w w w. d i r e c t s e l l i n g n e w s . c o m 2 7

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/ INDUSTRY NEWS /

S T O C K

TUP’s losses average 25 percent. Shares rebounded slightly, ending June about 17 percent higher than its June 21 lows after the Board of Directors authorized a $250 million stock repurchase plan and a $58 million prepayment of its term loan. n Nu Skin Enterprises, Inc. (NYSE: NUS) fell 5.8 percent after a 14.5 percent gain in May. Its May strengthening was likely due to a strong first quarter earnings report, which included a 31 percent year-over-year revenue increase. Since March 2020, NUS has still dramatically outpaced the Dow, gaining 140.1 percent, compared with a 35.9 percent gain for the broader market. n Herbalife Nutrition, Inc. (NYSE: HLF) gained 0.3 percent in June and held onto its May gains of approximately 15 percent. HLF shares are up 62.9 percent since March 2020.

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W A T C H

Medifast, Inc. (NYSE: MED) shares declined 14.8 percent in June, surrendering almost a third of its 46 percent gain in May. MED’s shares reacted positively to first quarter earnings, which reported revenue increases of 91 percent year-over-year. The company is projecting a 54 percent increase for 2021 revenue. Shares have increased 256 percent since March 2020. n USANA Health Sciences, Inc. (NYSE: USNA) fell 3.1 percent in June following a 17.5 percent gain in May. Through midyear 2021, USNA has more than doubled the performance of the DJIA in 2021, rising 31.4 percent versus 14.2 percent for the stock market index. n eXp World Holdings (NASDAQ: EXPI) led the large cap tracking set, rising 20.2 percent in June. Since March 2020, EXPI shares have risen more than 700 percent. In its first quarter earnings report, the company’s revenue increased n

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Analysts maintaining “buy” and “hold” ratings on industry stocks remained flat at approximately 90 percent, while those maintaining “sell” ratings held at just under 10 percent.

115 percent year-over-year, with agent numbers expanding 77 percent. n Primerica, Inc. (NYSE: PRI) declined 5.6 percent in June, but hit 52-week highs of around $165 in early June before correcting at the end of the month. PRI is trading well above its late October 52-week low of about $107.

SMALL CAP STOCKS With the exception of Mannatech Incorporated (NASDAQ: MTEX), which rose 10.9 percent in the month, seven of the eight small cap stocks in the DSCA tracking group declined.

Mannatech announced a tender offer to purchase just over 10 percent of its total outstanding shares at a price of $26, representing a premium of nearly 28 percent to the stock’s closing price in the previous session. On June 30, the company

announced that only 8.31 percent of the total shares outstanding were tendered, illustrating that the majority of shareholders believed $26 was too low a price to surrender their shares. This move is an encouraging sign for MTEX, given that non-insiders hold about half of the company’s shares.

SHORT INTEREST AND DATA ANALYSIS Short interest in industry stocks moved noticeably higher from mid-May to mid-June, which is not unexpected given the elevated trading levels of so many of the DSCA stock tracking groups. HLF, USNA, NUS and TUP experienced the largest increases in “days to cover” during this period.

Analysts maintaining “buy” and “hold” ratings on industry stocks remained flat at approximately 90 percent, while those maintaining “sell” ratings held at just under 10 percent. DSN

DIRECT SELLING CAPITAL ADVISORS is a boutique investment banking, business development and corporate finance advisory firm primarily focused on the direct selling vertical, as well as ancillary businesses. Located in Dallas, Texas, Direct Selling Capital’s core service offerings include both buy and sell-side M&A advisory, equity and debt financing, as well as joint venture and partnership opportunities. For more information please contact us at: info@directsellingcapital.com This is a summarized report; for more information, please contact info@directsellingcapital.com.

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/ INDUSTRY NEWS /

D I G I T A L

M O M E N T U M

R A N K I N G S

D i re ct S e l l i n g N ews

D I G I TA L MOMENTUM RANKINGS Direct Selling News in partnership with Direct Selling Capital Advisors presents the Direct Selling News Digital Momentum Rankings monthly list. The purpose of these rankings continues to be to evaluate and acknowledge the companies experiencing significant growth in their online presence within the last 30 days.

Components

The list represents months of analysis across the three core pillars of social media marketing: web traffic & SEO analysis, Facebook activity, and Instagram activity.

Eligibility

A company is included in the Direct Selling Capital Advisors Direct Selling Momentum ranking when it has an active website, at least one active social media account, and at least 50,000 followers or fans for a single account (Facebook or Instagram).

As noted, our initial ranking methodology focuses exclusively on three primary drivers of online presence: web traffic, Facebook activity, and Instagram activity. We’ve aggregated roughly a dozen metrics from these three sources and assessed their change over the last thirty days in an attempt to measure the growth in a company’s online audience, or momentum.

A brief explanation of our proprietary methodology follows.

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Web Traffic & SEO

We analyze basic web traffic statistics as a measure of general interest. These statistics seek to measure the number of individuals searching for, visiting, and clicking on links that direct them to the company’s domain. This domain includes the corporate website and (in most cases) the company hosted web pages for individual distributors. Additionally we analyze the number of third party sources referring internet users to the company website, as well as the number of associated keywords, branded phrases, or marketing jargon (hashtags, slogans, etc.) that are popular across the web. Assessing the change in these metrics over time creates an estimated increase or decrease in demand for the company across the web.

Facebook Activity

We gather a collection of metrics intended to measure thirty-day changes in both volume (count) and quality (engagement & communication with) of followers. Assessing the change in behavior on Facebook, we believe, is a valuable tool in determining improvements (or declines) of a brand’s social value.

Instagram Activity

As with Facebook, we focus on the thirty‑day change of our metrics as a measure of social attention, or momentum, assuming a significant change in attention indicates changes in social interest and brand awareness.

A Note on Facebook vs. Instagram

Given varying target markets and consumer profiles, companies seem to often focus on Facebook or Instagram, rather than both. To ensure appropriate credit is given to the correct outlet, our metric analysis and momentum calculation consider which platform appears to be the primary for each company. As an example, if a company has 20,000 Instagram followers and 80,000 Facebook fans, all Facebookrelated metrics will be weighted at 80‑percent (80/100) of the total weighted social media metric score. Similarly, all Instagram-related metrics will be weighted 20 percent. Few companies do not have an active official Instagram account, and so their social media metric is based 100 percent on Facebook performance and changes. There are no companies in the list for which an official Facebook profile does not exist.

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C

OMPARING Q2 TO Q1, the industry overall saw modest growth in Instagram followers and engagement while the same stats for Facebook experienced a slight decline, not altogether unexpected. The 100+ portfolio of

Direct Selling companies also saw an impressive web traffic quarter-over-quarter improvement of +20 percent.

Regarding Facebook, the group averages for fan growth and engagement were 0.7 percent and -7.5 percent respectively, while Instagram fared better at +3.7 percent follower growth and +3.0 percent engagement per post.

Overall, Q2 was a modest improvement from Q1, assumingly due to the general reopening of the economy and social engagements though somewhat depressed as we entered the summer months. We expect some decent uptick in activity as we exit summer and the kids return to school, allowing distributors more time and energy for increased activity.

Below are the rankings for the Domestic and International Momentum Rankings:

TO P 5 0

MOMENTUM RANKINGS

I N T E R N AT I O N A L L I S T

1 MODERE

26 MELALEUCA

1 FARMASI

2 XYNGULAR

27 PURE ROMANCE

2 PM-INTERNATIONAL

3 SEINT

28 SUNRIDER

3 TIENS

4 SCENTSY

29 TUPPERWARE

4 FABERLIC

5 FOREVER LIVING

30 NU SKIN

5 POLA

6 COLOR STREET

31 WORLD FINANCIAL GROUP

6 NATURA

7 RED ASPEN

32 PRÜVIT

7 VESTIGE

8 EXP REALTY

33 PLEXUS

8 GIFFARINE

9 JAFRA

34 ARIIX

9 ZINZINO

10 SCOUT & CELLAR

35 LIVE PURE

10 ORIFLAME

11 TLC

36 NEOLIFE

11 YANBAL

12 PARTYLITE

37 MYDAILYCHOICE

12 THE BODY SHOP

13 SHAKLEE

38 VALENTUS

13 LYCONET

14 IMMUNOTEC

39 DOTERRA

14 OMNITRITION

15 AMWAY

40 BHIP GLOBAL

15 INFINITUS

16 ZILIS

41 4LIFE

16 MWR LIFE

17 JEUNESSE GLOBAL

42 MARY K AY

17 AVON WORLDWIDE

18 REVITALU

43 PRINCESS HOUSE

18 COWAY

19 BEAUTYCOUNTER

4 4 ASEA GLOBAL

19 M ARY K AY

20 LE-VEL

45 NEORA

21 NATURALLY PLUS

46 RELIV

22 CHALK COUTURE

47 NORWEX

23 EPICURE

48 YOUNG LIVING

24 ZURVITA

49 SEACRET

25 MONAT GLOBAL

5 0 IM MARKETS ACADEMY

INTERNATIONAL PAGES 20 BELCORP

For more information or questions, submit your inquiry to preston@directsellingnews.com.

DIRECT SELLING CAPITAL ADVISORS is a boutique investment banking, business development and corporate finance advisory firm primarily focused on the direct selling vertical, as well as ancillary businesses. Located in Dallas, Texas, Direct Selling Capital’s core service offerings include both buy and sell-side M&A advisory, equity and debt financing, as well as joint venture and partnership opportunities. For more information please contact us at: info@directsellingcapital.com This is a summarized report; for more information, please contact info@directsellingcapital.com. w w w. d i r e c t s e l l i n g n e w s . c o m 3 1

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/ INDUSTRY NEWS /

based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:

Distributor—someone who

DOES have a distributor agreement in place n

R E C O G N I T I O N

BE CU STOM ERCENTRIC RECOGNIZED.

The CCR Program is

n

C U S T O M E R - C E N T R I C

Customer—someone who

DOES NOT have a distributor agreement in place n

Active is defined as each

Direct Selling News is excited to present the Customer-Centric

customer and distributor must

Recognition (CCR) Program to celebrate companies that are

have made a product purchase during the last six months.

leading the way toward a sustainable, customer-centric future for the

Active customer and distributor counts are limited to those in

industry. Qualifying companies utilize business models that boast high

the U.S. and Canada.

customer-to-distributor ratios and prioritize customer sales.

Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue.

Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

DSN DIRECT SELLING NEWS

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Companies who wish to learn more or submit a CCR Program Application can go to www.directsellingnews.com/ccr/ or contact editor@directsellingnews.com

AUGUST 2021

7/21/21 5:58 PM

D

IRECT SELLING COMPANIES with a strong retail base of satisfied customers are

experiencing impressive growth and deserve recognition and acknowledgment for

their efforts. With evolving consumer expectations and regulatory scrutiny, customer‑centric

equals success for everyone—distributors, direct selling companies, and the channel as a whole.

The DSN Customer-Centric Recognition Program acknowledges these companies.

GOLD

/ 5:1 up to 10:1

P L AT I N U M

/ 10:1 and above

MONAT GLOBAL

ACN

NEORA

BHIP GLOBAL, INC.

PERFECTLY POSH

IT WORKS!

TOTAL LIFE CHANGES

KYNECT

LE-VEL

LULAROE

NU SKIN, INC.

SCENTSY, INC.

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7/21/21 5:59 PM

Nominate Your Company as a Best Place to Work in 2022!

NOMINATIONS ARE OPEN AUGUST 1 - OCTOBER 22!

To nominate your company, please go to www.directsellingnews.com/achievements/best-places-to-work/ The Best Places to Work in Direct Selling will be featured in our April 2022 issue.

DSN_0821_IndustryNews_CCR.indd 34

7/21/21 5:59 PM

DIRECT SELLING IS THE ORIGINAL PEOPLE BUSINESS. Measuring field engagement is critical to any company’s success, but the field is only part of the people equation. Once again, Direct Selling News has partnered with HR technology company Quantum Workplace to celebrate the important role direct selling companies play as employers in the marketplace and to identify the best of the best when it comes to creating engaging work environments.

DSN

DIRECT SELLING NEWS

The News You Need.

The Name You Trust.

For sponsorship opportunities, please contact Jerilyn Taylor at advertising@directsellingnews.com

SPONSORED BY

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FO R WA R D

T H I N K I N G

/

S AY

W H AT ?

Say What?

How translation technology is breaking language barriers.

T

BY DAVID LEE

HE DIRECT SELLING INDUSTRY IS NO STRANGER to evolving communication strategies, especially companies operating in multiple countries. Technology continues to shrink the world, bringing together people from many different cultures who speak many different languages. That simultaneously offers terrific opportunities and presents unique challenges for direct sellers. But advancements in translation technology are helping break down language barriers while people become more comfortable conversing and doing business with those who speak different languages.

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According to ethnologue.com, more than 7,000 languages are spoken in the world today, but just 23 languages account for more than half of the world’s population. In addition, more than half of Facebook’s 2.5 million users post in a language other than English.

So, the opportunity to use translation technology to expand network-based business is only going to grow.

“Understanding is going to become the new normal,” says Dave Limp, Amazon’s Senior Vice President of Devices and Services. “Kids will never grow up in a world where they aren’t able to hear any language. It’ll just happen.”

How Translation Technology is Working

From wearable earbuds, mobile apps, voiceactivated devices, today’s translation technology focuses on accuracy, simplicity and mobility. Phone apps incorporate voice and audio translations, keyboard messaging, and even augmented reality translations that use your camera to identify and translate the names of common items.

Amazon Echo and Google Home are equipped with translation features. If your device has a screen, the translated text can appear on the screen. The Google Translate app has more than 1 billion active monthly users, 95 percent of whom are from outside the U.S. More than 140 billion words are translated daily. Microsoft’s translation capabilities apply across a spectrum of products, including Word, Outlook, PowerPoint and others. Of course, these technologies come with some negatives. Not all translations are perfect. Meaning and intent can be lost. Accents, inflections, and disruptions such as “um” and “uh” can hinder the experience.

Most direct selling replicated websites can toggle between languages, and many print and online marketing materials are created in multiple languages, using translation technology can be a huge benefit. It can bridge communication gaps on the go, translate existing print marketing material, help with in-person presentations, and expand the reach of various forms of marketing content such as social posts, instant messaging, blogs, emails and more. DSN

HOT TRANSLATION TECH AMBASSADOR:

Video A Waverly Labs’ wearable interpreter device supports more than 20 languages and 42 dialects. It works in three modes. “Listen mode” can pick up a speaker within 8 feet.

“Converse mode” allows up to four people wearing the devices to have a conversation, even with different languages. In “Lecture mode,” Ambassador broadcasts the words of the speaker wearing the device over a loudspeaker.

GOOGLE PIXEL BUDS AND T R A N S L AT E A P P :

Pixel Buds, Google’s answer to Apple’s AirPods, works with the Google Translate app and on Android phones with Google Assistant. You first select a language by asking Google Assistant to help you interpret a language or selecting a language in the Translate App. When using the Pixel Buds, touch and hold either earbud to speak the words you want to translate, then you receive a response. You can also listen to another language in transcribe mode as Google Translate speaks a language that is continuously translated into your ear, along with a transcript on your phone.

S AY H I :

This app features 101 languages and dialects.

This is an audio/spoken platform that allows you to speak into your device, and the app translates and transcribes a message to be seen and heard by the person you want to communicate to.

You can even change the speed at which your translated voice is expressed.

M I C R O S O F T T R A N S L ATO R :

Microsoft’s offering might be the most versatile translation platform on the market. It features both consumer and business versions. Type, speak or even take a photo of an image with text you want to translate. You can use iOS or Android apps or translate in a web browser.

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FO R WA R D

T H I N K I N G

/

S H O R T

A N D

S W E E T

Short and Sweet

Short, authentic videos are the fastest-rising online content format.

BY DAVID LEE

S

OMETIMES, WHEN EVERYONE IS ZIGGING, the most effective move is to zag. That is what’s happening with online videos, especially when it comes to marketing. According to Statista, the average length of a YouTube video is 11.7 minutes. But platforms like TikTok and Triller and new features such as Instagram Reels and YouTube Shorts are bucking the trend with creative, entertaining, educational videos that last less than 1 minute and are filmed in a vertical layout as opposed to the traditional horizontal format. TikTok recently surpassed Facebook in average time spent per user and was on pace to surpass 1.2 billion active users in 2021.

“The growth of social media is causing the human attention span to become shorter and shorter,” says Brandon Sanders, a digital marketer for HubSpot Academy. “So, leveraging the power of short-form content will give you a leg up on your competition and help engage your audience.”

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A core of what makes these short videos so effective for corporate brands is leveraging user-generated content. In addition, many viral videos feature a company’s target audience, which also helps build relationships with customers who feel like they are part of building the overall brand.

Relatability and authenticity are critical. How do you create authenticity? Connect quickly, and be genuine, a Hubspot report says.

A Sprout Social study showed that 70 percent of consumers feel more connected to brands whose CEO is active on social media platforms. That comes down to transparency. Hubspot also revealed that users want short videos that contain how-to, DIY and educational content, such as recipes and workout tips. DSN

AUGUST 2021

7/21/21 5:58 PM

CUSTOMER EXPECTATIONS IN THE DIGITAL AGE Stackla surveyed 1,600 customers and 150 B2C marketers from the U.S., U.K. and Australia about perspectives on content in the digital age.

90%

OF CONSUMERS say authenticity is important when deciding which brands they like and support.

92%

OF MARKETERS believe most or all of the content they create resonates as authentic with consumers, 51% of consumers say less than half of brands create content that resonates as authentic.

2.4x

CONSUMERS ARE more likely to say user-generated content (UGC) is authentic compared to brand-created content. Yet, marketers are 2.1x more likely to say brandcreated content is authentic compared to UGC.

79%

OF PEOPLE say UGC highly impacts their purchasing decisions, yet only 13% said content from a brand is impactful, and a mere 8% said influencer-created content would highly impact their purchasing decisions.

9.8x

CONSUMERS FIND USER-GENERATED CONTENT more impactful than influencer content when making purchasing decisions.

67%

OF MARKETERS say they plan to increase their use of brand-created visuals, but only 15% of consumers say that’s the type of content they most want to see from brands.

67%

OF CONSUMERS say it’s important for brands to provide them with personalized experiences, yet 55% of people either disagree or are ambivalent about whether the majority of brands today actually provide them with a personalized experience.

Source: Stackla.com

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FO R WA R D

T H I N K I N G

/

M U S T

R E A D S

Must Reads CHANGE YOUR WORLD: HOW ANYONE, ANYWHERE CAN MAKE A DIFFERENCE AUTHOR: JOHN MAXWELL AND ROB HOSKINS (HARPERCOLLINS LEADERSHIP, 2021)

I

N THE NEW BOOK CHANGE YOUR WORLD, #1 NEW YORK TIMES bestselling author and world-renowned leadership expert John Maxwell, along with Rob Hoskins, president of the international nonprofit organization One Hope, tell the incredible stories of everyday people who have effected great change for good. With these inspirational stories and a practical roadmap for transformation, the book equips you to evolve from being someone who wants to change the world into someone who doesn’t wait to change the world. Whatever the desire of your heart—better schools, better neighborhoods, more positive workplaces, more connected families, or more engaged communities—Change Your World will guide you through the entire process to take action and start making an impact today right where you are.

ALL THE RIGHT REASONS: 12 TIMELESS PRINCIPLES FOR LIVING A LIFE IN HARMONY AUTHOR: KEVIN GUEST (USANA HEALTH SCIENCES, 2019)

WILL YOU LIVE YOUR LIFE FOR ALL THE RIGHT REASONS? Is your life built on a

solid foundation? Do you know your core values, and do you have the courage to live by them? All the Right Reasons portrays the real-life journey of USANA CEO Kevin Guest, one where music, business, faith, and family all converge to forge an unimagined destiny. This heartwarming story of choice, sacrifice, and discovery, will show you that dreams do come true for those who choose a life of principle over self. You will be enthralled by the twelve timeless principles by which Guest lives and leads others to find their ultimate definition of success.

DIRECT APPROACH WITH WAYNE MOOREHEAD (DIRECT SELLING NEWS) Direct Approach is laser-focused on helping executives next level their strategy, marketing and brand. Wayne Moorehead and his guests—some of the leading marketers and innovators in direct selling—tackle these issues, covering topics like customer acquisition and retention, consistent and effective messaging, reputation management, emerging trends and much more.

Each episode will help your marketing and branding teams motivate the field, inspire customers and further your brand’s reach and impact. DSN

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AUGUST 2021

7/22/21 11:03 AM

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F E AT U R E

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M AT T E R S

AUGUST 2021

7/21/21 5:56 PM

Simplicity Matters

THE BUSINESS CASE FOR BUILDING AN EASY-TO-USE E-COMMERCE SYSTEM B y N OA H W E S T E R LU N D w i t h H E AT H E R M A R T I N

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F E AT U R E

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S I M P L I C I T Y

M AT T E R S

Y

OU’RE ON THE COUCH ON A SATURDAY NIGHT, scrolling your news feed. Oh, look. A Facebook ad for jeans you didn’t even know you wanted. You click. You click maybe a couple more times, hit “buy now,” and the package lands on your doorstep Sunday morning.

Shopping in the 2020s literally couldn’t be easier.

E-commerce systems have become so fast and smart in the last few years. It seems we barely have to think about our next purchase, and there it is, in a matter of hours or days. It’s tempting to dismiss the fact that such simplicity requires complex thought and planning.

Ease is not easy. But it’s absolutely critical that you do the work—not just for your customers, but for your distributors and internal teams, too—to create no-brainer e-commerce systems. In this final deep dive into our e-commerce benchmarks, we look at best practices behind simple technology.

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“

With a truly tailored e-commerce system, you let shoppers know that you ‘get’ them and their preferences.

Make it easy for the customer.

If a customer has to work too hard to buy from you or resolve questions and problems with you, you will lose their business. Direct selling products may be premium, but there are still generally many viable alternatives to what you’re offering. Someone else is always standing by to grab your customer’s attention and their loyalty. These three strategies will help you tune into your shoppers and keep them coming back.

TAKE PERSONALIZED SHOPPING TO A DEEPER LEVEL. Effective personalization is more than greeting a customer by name on your website and in emails.

And it’s more than having a general profile of their demographic. With a truly tailored e-commerce system, you let shoppers know that you “get” them and their preferences.

Global consulting firm McKinsey & Company advises online retailers to give customers offers that are “targeted not just at customers like them, with brands targeting at the segment level with broad-based offers, but at them as individuals, with products, offers and communications that are uniquely relevant to them.” The bottom line benefits are significant: Companies with strong personalization programs have a 10 to 15 percent higher browser-to-buyer conversion rate and a 20 percent higher customer satisfaction rate, McKinsey research shows. Harvard Business Review reports that if you can increase your customer satisfaction rate by just 5 percent, you could see a profit increase between 25 and 95 percent.

1

_______________________ World Class

RECOGNITION For World Class

PERFORMANCE

_______________________

www.eadion.com Call 1-800-445-1007 for a distributor near you. w w w. d i r e c t s e l l i n g n e w s . c o m 47

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F E AT U R E

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Your e-commerce tools need to be intuitive so that your team members can learn to use them with little or no curve.

2

ASSUME SHOPPERS WILL GET DISTRACTED. Your customers’ attention is in demand, and even those who intend to purchase may leave your site before they click “complete order.” There are some simple tools you can use to bring them back to your virtual aisles and move them through the checkout line.

Take a cue from the “keep watching” feature on streaming services that bring people back to where they were when they logged off or timed out. If they don’t have to retrace their steps to get to the products they were considering, they will appreciate the convenience and be more likely to finish the transaction. There’s also the “You still have a full cart” email that can help you lower your percentage of abandoned carts.

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Your brand identity offers a unique opportunity

to make powerful and BUILD TRUST THROUGH EMPOWERMENT AND ACCESSIBILITY. As our industry focuses more and more on customer acquisition, preferred buyers who sign up for auto-ship are critical for our bottom lines. But subscription programs should never make a customer feel trapped. They should be easy to manage, allowing people to skip a shipment or cancel at any time, in just a few clicks.

Your customer service can also reinforce your customers’ trust or erode it. Chatbots are becoming increasingly effective at handling a certain level of inquiry, but the statistics on what percentage of customers prefer them are all over the place. Today’s consumers don’t have a lot of patience. Sometimes, talking to a real company representative is the only way to get a timely, thorough resolution to an issue. Pay attention to how your customers want to communicate with you, and give them the right mix of tech-based and people-based options.

3

lasting emotional connections with

your customers, prospects, and salesforce.

Harland Clarke has the

experience and expertise to help drive your branded engagement engine, providing customizable merchandise via a branded online company store.

Make it easy for the distributor.

You know this, but it bears repeating: Most of your distributors don’t have professional sales backgrounds and probably have only basic technology skills.

In his book “Systems Scale: Eight Simple Systems that Ignite Growth,” Brett Blake writes, “Too many direct selling companies focus on great products, excellent compensation systems, and eye-popping marketing and neglect the difficult work of making their customer acquisition system something that is simple enough to ensure the success of [average] distributors.”

Your e-commerce tools (the mobile app, back office, etc.) need to be intuitive so that your team members can learn to use them with little or no curve and move quickly from sign-up to sales. This means you probably need to do more internal testing than you’re doing—and with the right groups of people. Often, we rely on the experiences and talents of top distributors as our benchmarks, but they are such a small percentage of our people. So instead, build and test your systems using a sample of novice distributors.

LEARN MORE: harlandclarke.com/PromoCX CONTACT US: sales@dsa.harlandclarke.com

9 3:15 PM HC-V PromoCX print ad 2.875x9.625.indd w 1 w w. d i r e c t s e l l i n g n e w s . c o m 46/1/21

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F E AT U R E

/

S I M P L I C I T Y

M AT T E R S

“

Make it easy for your internal team.

Your IT, sales and marketing teams will thank you for creating an e-commerce system that allows them to help you get the most out of the technology.

Seamless integration is the key to making this happen—in our July issue, we told you how important it is that your e-commerce applications talk to each other. Collecting customer data through your mobile app, for example, doesn’t do you any good if your system for analyzing data can’t process what you’re gathering.

But the best e-commerce system in the world won’t give you a meaningful return on your investment if you don’t have the right team. They have to be sophisticated enough to deploy and manage the system and to understand what the data are telling them. This is crucial to know whether your technology and your e-commerce strategies are working. You can assume you’re making more baskets than the competition, but if you don’t know the actual score, you’re merely guessing on a macro level. And that’s not a good spot to be in.

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You can assume you’re making more baskets than the competition, but if you are merely guessing you don’t know the actual score.

Time to be standard-bearers.

Direct selling companies haven’t traditionally led the technology pack. We tend to be later adopters of internal and customer-facing systems. But expectations for how seamless and foolproof technology, especially e-commerce technology, should be now are higher than ever.

We don’t have to wait for our traditional retail counterparts and online giants like Amazon and Etsy to keep setting the next bar. We have the resources and the platforms to be the example of e-commerce excellence and innovation that others look to. With the right mindset, strategy, and discipline, it’s easy. DSN

AUGUST 2021

7/21/21 5:56 PM

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Billion Dollar Markets

BY BETH DOUGL ASS SILCOX

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Global factors like lockdowns, job displacement and supply chain disruptions ebbed and flowed from

C

market to market and even within markets producing highs and lows. But the real “big picture” insight for 2020 is how well the industry performed despite those challenges.

RAZY, TUMULTUOUS, UNPREDICTABLE, CHALLENGING and in some cases accelerating—all these describe 2020. For the global direct

selling industry, it was a year of phases unfolding differently in regions and countries around the world, depending upon a number of factors associated with the severity of COVID, governmental response to it, market readiness and the infrastructure capability of the global supply chain.

AND WHEN the World Federation of Direct Selling Associations compiled 2020 statistics from DSAs the world over—an arduous task undertaken by a dedicated team of volunteers representing some of the finest direct selling companies—they found global factors like lockdowns, job displacement and supply chain disruptions ebbed and flowed from market to market and even within markets, producing highs and lows set out in black and white data.

But the real “big picture” insight for 2020 is how well the industry performed despite those challenges.

The $179.3 billion generated in estimated retail sales globally during 2020 underscores the entrepreneurial

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and adaptable nature of the industry, as well as the core power of one-to-one relationships deepened through the increasing use of technology during a time of separation and uncertainty.

Also emerging from WFDSA’s data is increasing numbers of preferred customer programs, with 40 percent of markets now reporting some category of participation that allows people to sign up with companies to access products. Some 30 million of these preferred customers appear in the 2020 data, in addition to seller counts. Migration of discount customers to preferred customer programs is also increasing.

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2020

Market readiness and the ability of companies to leverage technology varied greatly in 2020, and WFDSA theorizes these factors had a substantial impact on sales results.

“I think there are going to be a lot of case studies coming out of 2020. It’s interesting to look at some of the markets that really performed well and to contrast some of the markets that didn’t. What are the lessons from that? There’s a lot to be gained,” says Tim Sanson, co-chair, WFDSA Global Research Sub-Committee.

“In a lot of markets, the industry responded extremely well, and some of the reasons we theorize are the increased use of technology, social media, and video conferencing for independent sellers to continue to stay connected with their customers and to continue to build their businesses,” Sanson says.

The extra time people had to work, while stuck at home or displaced from regular jobs, also provided opportunities for sellers to connect with customers, who may have been craving social interaction.

Companies shifted away from traditional in-person meetings, went virtual and found meaningful ways to stay connected digitally. Sanson says the ability to leverage that technology was one of the keys. But market readiness for that was not consistent.

For those companies and markets that performed well, the looming task is to cement gains in 2021 while the entire industry learns from the lessons 2020 dished out.

“

The looming task is to cement gains in 2021 while the entire industry learns from the lessons 2020 dished out.

The Data *ALL WFDSA DATA HAVE BEEN ROUNDED THROUGHOUT.

WFDSA reports global estimated retail sales of $179.3 billion (Constant U.S. Dollars) for 2020.

History shows that China’s market volatility infuses ups and downs into global market data. So, for the second year, data is reported for dual analyses— one includes China, and another excludes China due to its size, struggles and impact that market’s performance has on the industry as a whole.

Excluding China1 (Q1 2019, Chinese Government 100-day review of nutritional supplement industry not related specifically to direct selling), 2020 worldwide retail sales showed a year-over-year increase of 5.8 percent, up from 1.4 percent in 2019.

Global sales results, including China, rallied from a 4.3 percent decrease in 2019 to show a 2.3 percent increase in 2020. w w w. d i r e c t s e l l i n g n e w s . c o m 5 5

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Regional market performance, due to the extenuating circumstances of COVID, was a mixed bag of ups and downs for 2020. The Americas’ estimated retail sales expanded 10.6 percent, Europe was up 1.6 percent, and emerging markets in the Africa/Middle East region gained 4.0 percent.

China’s estimated retail sales lost significant ground and hit Asia/Pacific hard, as that region’s performance fell 3.6 percent.

Global industry growth, measured by the 3-year Compound Annual Growth Rate (CAGR), indicates a healthy expansion pace of 3.0 percent (excluding China) and -0.1 percent (including China) for the 2017-2020 period.

2020 was a tumultuous year, and it is reflected in the composition of DSN’s Billion Dollar Markets list. Significant rank shifting occurred, as the United Kingdom fell from 11 to 23 (in part due to incomplete data), and Ecuador dropped from the list entirely.

Sales swings were wide in some country markets, with China dropping 20 percent on the heels of a 30 percent decrease in 2019 and Peru struggling with a 16.5 percent fall.

But 47 out of 70 markets reported estimated retail sales growth, and the upsides swung the pendulum wide in the other direction too, with the United Kingdom posting 45 percent growth and a near-record 13.9 percent increase in the United States. Both India (up 28.3 percent) and Canada (up 26 percent) advanced several rankings after stretching product sales in 2020. Argentina’s performance (up 90.3 percent), despite the impact of extreme, non-COVID related inflation, is notable.

Of the 23 Billion Dollar Markets, the top ten performers make up 78 percent of global estimated retail direct sales for 2020. The United States leads with 22.4 percent of global sales, followed by China with 10.7 percent; Germany, 10 percent; Korea, 9.9 percent; Japan, 8.8 percent; Brazil, 4.6 percent; Malaysia, 3.9 percent; Mexico, 2.9 percent; France, 2.9 percent; and Taiwan, China at 2.5 percent.

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125.4 million independent representatives participated in direct selling in 2020, an increase of nearly six million over 2019’s 119.9 million.

This includes more than 65 million independent representatives who work either full- or part-time to earn supplemental income. Excluding China, all regions increased sales force numbers with the largest increase of 18.2 percent in the emerging markets within Africa and the Middle East.

2020 BREAKDOWN

BY REGION / THE AMERICAS / A MERICAS 2020 BILLION DOLLAR MARKETS

#1

United States

#6

Brazil

#8

Mexico

#11

Canada

#16

Colombia

#17

Peru

#19

Argentina

6

13.9%

5 10.5% 5

2.0%

6 5 5 6

26.0% 0.5% 16.5% 90.3%

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“

The 125.4 million independent representatives participated in direct selling in 2020, an increase of nearly six million over 2019.

The Americas—North and South/Central—comprised 36 percent of direct selling’s global estimated retail sales in 2020. Combined, they reported $64.7 billion for 2020, posting growth of 10.6 percent with CAGR increasing to 3.9 percent.

Seven Billion Dollar Markets exist in this region for 2020. Ecuador, previously ranked on the 2019 list, did not qualify in 2020. Wellness and Cosmetics and Personal Care products were even-matched in sales popularity in recent years; however, 2020 saw a surge in Wellness products, and it took a 31 percent share, compared to Cosmetics 29 percent. A distant third is Household Goods and Durables at 13 percent, up from 11 percent in 2019.

A BO UT TH E R E S E A RC H THIS COLLABORATIVE, global data collection effort of the World Federation of Direct Selling Associations, Seldia (The European Direct Selling Association), and local direct selling associations and their member companies around the world, depicts the state of the global direct selling industry for 2020.

Compiled annually, this is a collection of individual market data in local currency figures, which are converted into U.S. dollars using current year constant dollar exchange rates to eliminate the impact of currency fluctuation. All statistics are based on estimated retail sales and in some instances may be restated using actual sales data as they become available. Statistics for some markets represent direct selling association member companies only and not the entire industry in that country. Other statistics are WFDSA research estimates. All statistics expire June 2022.

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The Americas recorded nearly three million more independent representatives (33.7 million), up 9 percent over 2019 and offering a revitalization of sorts after declines dating back to 2017 and 2018.

Regional data for the Americas are reported together; however, the Americas are split here to better understand each of the distinct markets.

BILLION DOLLAR MARKETS FOR 2020 RANK

COUNTRY

2020 RETAIL SALES (US$ MILLIONS)

3-year CAGR (2017‑2020)

$40,100

4.7%

China

$19,183

-17.0%

3

Germany

$17,967

2.0%

4

Korea

$17,748

2.6%

5

Japan

$15,411

-1.5%

6

Brazil

$8,252

4.0%

7

Malaysia

$6,978

11.4%

8

Mexico

$5,277

0.6%

9

France

$5,130

0.5%

10

Taiwan, China

$4,462

3.8%

11

Canada

$3,092

5.0%

12

India

$3,019

17.6%

13

Thailand

$2,953

-0.9%

14

Italy

$2,836

-4.6%

15

Russia

$2,171

-1.6%

16

Colombia

$1,989

1.4%

17

Peru

$1,956

-3.8%

18

Indonesia

$1,618

7.6%

19

Argentina

$1,468

41.2%

20

Philippines

$1,411

1.9%

21

Australia

$1,263

-0.1%

22

Poland

$1,145

2.8%

23

United Kingdom

$1,054

8.0%

1

United States

2

SOURCE: WORLD FEDERATION OF DIRECT SELLING ASSOCIATIONS

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North America

Direct selling in North America for 2020 reported $43.2 billion in sales, up 14.7 percent thanks to a near-record increase in both the United States and superb performance in Canada.

After a year of flat-line sales in 2019, the United States held 22.4 percent of the global market in 2020. The U.S. pushed through the challenges of COVID to sales increases seldom seen before in the market and gained 2.4 percent global market share over 2019. They generated $40.1 billion in estimated retail sales, an increase of 13.9 percent, which helped the overall U.S. CAGR reach 4.7 percent in 2020. Following a 6 percent retail sales fall for 2019, Canada’s direct selling market surged ahead with 26 percent sales growth, reaping $3.1 billion in estimated retail sales with a 5 percent CAGR. WFDSA data shows 18.1 million independent representatives in North America, up from 17.5 million in 2019; 16.7 million of them live and work in the United States, with 1.4 million in Canada. Both markets saw increases this year.

South/Central America

The South/Central America region is made up of five Billion Dollar Markets: Brazil, Mexico, Colombia, Peru, and Argentina. Performance in this region was a mixed bag. Despite Argentina’s inflationary market, their 90.3 percent increase is notable.

Brazil marked a sales increase of 10.5 percent. But other countries experienced significant losses: Peru declined 16.1 percent. Ecuador, a recent Billion Dollar Market, fell off the 2020 list after a 23.1 percent decline in sales. All told, this region reported estimated retail sales of $21.5 billion, an increase of 3.3 percent for 2020 and a CAGR of 2.3 percent.

Market performance breakdown was as follows: Brazil ($8.3 billion, 4.6 percent of global market, 4.0 percent CAGR), Mexico ($5.3 billion, 2.9 percent of global market, 0.6 percent CAGR), Colombia ($2 billion, 1.4 percent CAGR), Peru ($2 billion, -3.8 percent CAGR), and Argentina ($1.5 billion, 41.2 percent CAGR). Inflationary economies like Argentina typically report restated data later in the year.

Cosmetics and Personal Care products reined in 57 percent of product sales; however, 2020 showed a third year of decline from a high of 67 percent in 2017. The Wellness category is

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UNITED STATES > YEAR

RETAIL SALES (US$ Millions)

CHINA >

% CHANGE

YEAR

Year-over-year

2017 $34,900 2018 $35,350 2019 $35,210 2020 $40,100

-1.8% 1.3% -0.4% 13.9%

RETAIL SALES (US$ Millions)

% CHANGE

Year-over-year

2017 $35,586 3.0% 2018 $34,257 12.0% 2019 $23,980 -30.0% 2020 $19,183 -20.0%

U . S . R E C O R D G R OW T H

growing and captured 19 percent of sales in 2020. South and Central America saw a surge in independent representatives, as 2020 recorded nearly 15.7 million—almost two million additional representatives over 2019 (13.4 million).

/ ASIA PACIFIC /

VALIDATE, UNDERSTAND, REPORT WFDSA ENHANCES DATA COLLECTION

ASIA PACIFIC 2020 BILLION DOLLAR MARKETS

6 20.0%

#2

China

#4

Korea

#5

Japan

#7

Malaysia

#10

Taiwan, China

5

#12

India

5 28.3%

#13

Thailand

6

1.1%

#18

Indonesia

4.2%

#20

Philippines

5 5

#21

Australia

5 5 6

6

1.6% 3.4% 15.8% 5.8

7.9% 8.0%

B

THROUGH ZOOM UILDING UPON existing strong relationships with direct selling associations around the globe, WFDSA enhanced and strengthened their data collection process through face-to-face Zoom meetings with DSAs in 2020.

“It was much richer both for us and the DSAs in terms of prompting them to get the best use of their data and understanding how we use data,” says Tim Sanson, co-chair, WFDSA Global Research Sub-Committee.

Tamuna Gabilaia, WFDSA executive director and COO, says data collection is a challenge due to confidentiality, DSA staff shortages, and the DSA’s ability to analyze.

But 15 to 20 of the reporting DSAs outsource data collection from member companies, as well as analyzation, which increases WFDSA confidence in the reported statistics. Further complicating collection is the lack of DSAs in

some markets. Company data flows into as many as 74 reporting entities, so aggregating it is a challenge.

Maintaining consistency is vital.

So too is data verification, perhaps, never so much as in 2020.

So WFDSA got a line on data submissions through Zoom interactions which helped them verify statistical surprises like 2020’s surge in Malaysia, where the growth of a few companies caused the market to exponentially explode.

“That underscores what the underlying factors were in some of those markets that grew more than most in 2020. There were a few like that, and that was the biggest challenge. We had to spend more time validating that data. Is it really up that much? How do we explain that and be confident that we are drawing like-to-like comparisons?”

Sanson says.

“We plan to continue doing a lot more calls with individual DSAs so that we can understand what’s in their data, we can make the right assumptions, and they can understand what should be in their data and then they can make the right submissions,” says Josephine Mills, co-chair, WFDSA Global Research Sub-Committee. w w w. d i r e c t s e l l i n g n e w s . c o m 5 9

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HILE THERE IS no hard data to measure the totality of the effect global supply chain issues had on direct selling industry results in 2020, it is likely these challenges materially impacted sales and is likely to further impact 2021 and beyond. Initiated by the COVID pandemic, this supply chain crisis was and is not a simple, temporary disruption.

“Everything from raw materials through finished products to getting those products to market with reliable transportation—the whole supply chain was impacted in 2020.

That’s had a dampening impact on markets,” says Tim Sanson, co-chair, WFDSA Global Research Sub-Committee.

“Most companies, including direct selling companies, had been used to shortening inventory cycles and working on ‘just-intime’ supply chain philosophies.

This has backfired during a global pandemic, and the subsequent demand to rebuild raw materials and finished good inventory to refill the supply chain (and create bigger buffers) has created a significant shortage of raw materials, production capacity, labor and transportation capacity,” Sanson says.

In a recent issue of Forbes, Vasuki Shastry wrote, “If 2020 was the year of the pandemic, 2021 is shaping up to be the year of stressed supply

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chains and the shortage economy.”

Had this simply been a COVID issue, Aldofo Franco, executive vice president, United States Direct Selling Association, says, “We would not be in the situation we find ourselves today…particularly with respect to China. China is not fully back online, and we don’t have a clear picture as to the reasons why, but it is not and cannot be interpreted as simply COVID.” Geopolitical considerations are at work, and while China is not the source of all goods in the world, it is the source of many key components in terms of the supply chain, Franco says.

Initiated by the COVID pandemic, this supply chain crisis was and is not a simple, temporary disruption.

While the general view is that the supply chain is slowly recovering, it is hard to know just how long that will take. Companies reduced capacity, and it takes time to rebuild that capacity, while some simply went out of business. Sanson says those things influence the direct selling industry the same way they do on most others. “It’s hard to be insulated from that,” he says.

“I think the situation will improve, but you don’t let any crisis go to waste. The crisis caused by COVID is now being leveraged on macro-economic policy more broadly, globally. That is impacting the global supply chain and the equilibrium that existed prior to COVID. That doesn’t mean it cannot be restored, but that is going to have to play out certainly through the remainder of the year,” Franco says.

There are ten Billion Dollar Markets in the Asia‑Pacific region, which generated 43 percent of global retail sales. Asia-Pacific estimated retail sales were down for the second year, reporting $76.5 billion in 2020, a decrease of 3.6 percent. The 3-year CAGR stood at -3.7 percent. Nearly 70 million independent direct sellers represented products and services throughout the whole of the region, nearly two million more than in 2019. That was 55 percent of the global independent direct sellers total. Wellness products comprised 47 percent of all sales, with Cosmetics and Personal Care at 22 percent.

China, the largest and most influential Asia/Pacific market, generated $19.2 billion in 2020 estimated retail sales, a reduction of 20 percent. As a result, their global market share fell to 10.7 percent in 2020, compared to 13 percent in 2019. China’s 3-year CAGR fell sharply again in 2020 to -17 percent. Totals for independent representatives fell for the third year to 3.6 million in 2020, a loss of nearly two million representatives since W2018.

The ordinary complexities of the China market paired with the impact of COVID brought significant challenges to data collection; however, WFDSA partnered with the Direct Selling Research Center at Peking University for the second year to improve understanding, consistency, and confidence in the data they collect.

The 2020 Billion Dollar Markets list includes nine other Asia/Pacific countries, whose performance reflected the impact and timing of COVID and each country’s ability to surmount the challenges it presented. India once again marked significant growth, generating a half‑billion more dollars in estimated retail sales over 2019 with a total of $3 billion and a CAGR of 17.6 percent. Malaysia continued its forward momentum with a surprise surge, posting nearly $1 billion more in sales during 2020 over 2019 with estimated retail sales of $7 billion. CAGR remains steady at 11.4 percent. But Asia/Pacific markets like Australia, Japan, the Philippines, and Thailand struggled.

The performance of the remaining Asia-Pacific Billion Dollar Markets was as follows: Australia ($1.3 billion, -0.1 percent CAGR), Indonesia ($1.6 billion, 7.6 percent CAGR), Japan ($16 billion, 8.6 percent of the global market, -1.5 percent CAGR), Korea ($17.7 billion, 9.9 percent of global market, 2.6 percent CAGR), Philippines ($1.4 billion, 1.9 percent CAGR), Taiwan-China ($4.5 billion, 2.5 percent of global market, 5.8 percent CAGR) and Thailand ($3.0 billion, -0.9 percent CAGR).

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/ EUROPEAN UNION / EUROPE AN UNION 2020 BILLION DOLLAR MARKETS

#4

Germany

#9

France

#14

Italy

#22

Poland

6 0.9% 5 5 6

3.0%

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6.1% 5.5%

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REST OF EUROPE 2020 BILLION DOLLAR MARKETS

#15

Russia

5

#23

United Kingdom

5 45.0%

7.1%

Twenty percent of global direct selling takes place in Europe, and it continues to grow, holding a 1.2 percent CAGR. Since a slight downturn in 2018, Europe’s sales trajectory has been on the rise. In 2020, the regional market increased 1.6 percent, with estimated retail sales for the whole of Europe at $36.2 billion. European Union country markets reported $31.2 billion in estimated retail sales, a slight decrease over 2019; however, following Brexit, the United Kingdom is categorized and reported as Rest of Europe for the first time in 2020.

Independent representatives number 14.5 million in Europe, with 6.7 million living and working within the European Union, and another 7.9 million throughout the Rest of Europe. Wellness (29 percent) and Cosmetics and Personal Care (20 percent) ranked as top product categories; however, Household Goods and Durables increased market share by 6 percent over 2019, posting 20 percent in 2020. Home Improvement products slotted fourth at 13 percent.

Germany moved up a rank to number three on the 2020 Billion Dollar Markets list. It comprised 10 percent of the global marketplace with $18 billion in estimated Continued on page 64 w w w. d i r e c t s e l l i n g n e w s . c o m 6 1

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2020 Regional Sales & Top Product Categories

EUROPEAN UNION $31.2 BILLION

NORTH AMERICA $43.2 BILLION United States & Canada

4Wellness 29% 4 Cosmetics & Personal Care 20% 4Household Goods & Durables 20%

4Wellness 31% 4 Cosmetics & Personal Care 29%

4 Home Improvement 13%

4 Household Goods & Durables 13% 4 Financial Services 7% 4 Clothing & Accessories 7%

SOUTH & CENTRAL AMERICA $21.5 BILLION 4 Cosmetics & Personal Care 57% 4Wellness 19% 4 Clothing & Accessories 9% 4 Household Goods & Durables 9%

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REST OF EUROPE $5 BILLION RUSSIA 4 Cosmetics & Personal Care 42% 4Wellness 37%

UNITED KINGDOM 4 Cosmetics & Personal Care 51% 4Wellness 29% 4 Household Goods & Durables 11%

ASIA-PACIFIC $76.5 BILLION 4Wellness 47% 4 Cosmetics/Personal Care 22% 4 Household Goods & Durables 15%

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Continued from page 61 retail sales, an increase of 0.9 percent, and a CAGR of 2.0 percent. Poland showed increases of 5.5 percent with estimated retail sales for 2020 at $1.1 billion and a 2.8 percent CAGR. France and Italy, the only remaining European Union representatives on the list, were in decline last year. France dropped 3.0 percent with $5.1 billion estimated retail sales, while Italy recorded a 6.1 percent decrease over 2019 with $2.8 billion in estimated retail sales.

/ REST OF EUROPE / This sub-region of Europe reported increased estimated retail sales of 12.4 percent totaling $5 billion. The market also showed a 2.0 percent CAGR. Russia is still the largest player in the region, with 56 percent of sales and estimated retail sales of $2.2 billion. 2020 was a recovery year for Russia, showing an increase of 7.1 percent after two years of slumping sales. Russia’s CAGR has yet to recover, however, and is -1.6 percent. Due to the United Kingdom’s exit from the European Union, that market now reports as the second largest country market in the Rest of Europe with just over $1 billion in estimated retail sales, a 45 percent increase. However, the United Kingdom fell from its previous rank of 11 in 2019 to number 23. This is due to incomplete data and will likely be restated later in the year. Their CAGR is 8.0 percent.

While developing markets within the Rest of Europe lost traction in 2019, there was a turnaround for Norway (up 13 percent), Switzerland (up 7.4 percent), and Turkey (up 5 percent) in 2020. Ukraine posted the only losses, down 8.5 percent.

While product category sales data is not available for the Rest of Europe as a whole, its two largest markets offer insights. Russia reports Cosmetics and Personal Care products took 42 percent, with Wellness at 37 percent. The United Kingdom shows similar results with Cosmetics and Personal Care at 51 percent and Wellness at 29 percent. Independent representative numbers total 7.9 million. DSN

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FERTILE GROUND

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he United States direct selling industry experienced a near record-breaking sales year in 2020. Jumping 13.9 percent, U.S. estimated retail sales reached $40.1 billion, according to WFDSA global research.

A year beset with pandemic and global supply chain issues followed a lackluster, flat-line sales year in 2019, so the question is how? What made the difference for the largest direct selling market in the world?

“Frankly, no one in the industry knew, none of the companies knew, nor did we (USDSA) know what was going to happen. We were in the same place most of America was when COVID was developing,” says Aldofo Franco, executive vice president, USDSA. “Had this been the situation even ten years ago, I think we might have seen a very different outcome,” Franco says. But the U.S. market was “unknowingly prepared” for conducting business during a pandemic.

For years, the U.S. direct selling industry has trended virtual, undergoing a digital evolution whereby direct selling companies use platforms to sell, make social connections, manage customer relationships, and even hold events.

The ground was fertile for direct selling in 2020, in much the same way it was for e-commerce.

“Companies, by and large, did not have to digitalize. That already existed. What was changed though, an acceleration of the use of these platforms, technologies, and methods of selling at every level,” Franco says. “It was not as novel as it might seem to some. In other words, there was not a scramble to say, ‘What do we do?’ Fortunately, we just built on the trends that were

already existing in the industry for both the companies and the direct sellers.”

USDSA’s 2021 Digital Transformation Study indicates the majority of direct selling companies invested significant resources to transform their companies virtually including e-commerce/mobile commerce, social selling, virtual events, faster payments, etc.

“Although overall U.S. retail sales only grew 3.4 percent in 2020, e-commerce grew 31.8 percent in 2020, and direct selling was likely able to ride on some of those e-commerce tailwinds,” says Ben Gamse, USDSA’s director of industry insights.

Franco believes technology gave the U.S. a head start but by no means ensured that 2020 would be an easy year. Well positioned in that category of e-commerce/ digital ability to sell and to some extent prepared, U.S. companies harnessed a crisis and seized an opportunity. They met challenges and innovated quickly.

USDSA generates granular data throughout the year, and the trajectory for 2020 looked good, but Franco was surprised by the near record level in sales.

Equally exciting was favorability data that showed high numbers for direct selling. Culturally, people changed habits last year, he says.

Maybe they tried direct selling as a seller or a consumer during the pandemic, and now they are hooked. To Franco, this means U.S. performance for 2020 is sustainable.

“I’m focused in on the consumer number. We have 40 million consumers, and I think people are satisfied with that. There’s absolutely no reason if we continue to deliver excellent products and service that that won’t continue in the future,” he says.

AUGUST 2021

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Strength in Numbers

BY COURTNEY ROUSH

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+ With its acquisition of Avon

in 2020, Natura &Co celebrates a network of four brands, more than six million people and

a passion to create a ‘wave of change’ in the world.

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J O Ã O PA U L O F E R R E I R A / President of Natura and CEO of Natura &Co in Latin America

F

IFTY-TWO YEARS AGO, Luiz Seabra was building the foundation of a direct selling company before he even realized it. He was working in a small cosmetics laboratory when he began to notice the false promises of eternal youth with which cosmetics were marketed.

What if, he wondered, cosmetics could be used as a powerful instrument not for achieving aspiration, but rather embracing reality? What if cosmetics could enhance self-perception and confidence?

Those experiences and revelations inspired Seabra to found his own cosmetics brand, Natura, in 1969 when he was just 27 years old.

His new company had a three-fold mission: first, offer skin care and body products made of natural and active ingredients; second, serve as trusted advisors to customers; and third, provide them with products specifically formulated for their unique needs. Seabra opened Natura’s first shop in São Paulo, Brazil, in 1970. He soon developed a reputation for highly personalized product recommendations and empathic customer relationships. That combination actually “shaped the ethos of Natura. Two passions—the cosmetics and the relationships—and the belief that this combination had the power to transform individuals,” says João Paulo Ferreira, President

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ANGELA CRETU / G l o b a l C E O o f Avo n

Natura &Co/Avon FOUNDED:

Natura 1969 and Avon 1886 HEADQUARTERS:

São Paulo, Brazil TOP EXECUTIVE:

João Paulo Ferreira, President of Natura and CEO of Natura &Co in Latin America And Angela Cretu, Global CEO, Avon PRODUCTS:

Cosmetics and Personal Care

of Natura and CEO of Natura &Co in Latin America.

“Those are the elements for anyone required to build empathy—for their families, loved ones, communities, society, and the world … and that’s what ended up being called ‘bem estar bem,’ or well-being/being well—an empathetic relationship with oneself, with others and with nature, which is the purpose of Natura.”

Seabra joined forces a few years later with a partner whose background in direct selling proved beneficial.

The pair sought to replicate the Natura experience and determined that the most effective way to do that was through independent representatives.

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+

Four brands, united by purpose

Today, what began as Natura is a connected network called Natura &Co and comprised of four brands­— Natura, Aesop, The Body Shop and, most recently, Avon. The Avon acquisition, announced Jan. 6, 2020, created the world’s fourth-largest “pure-play” beauty company; the term pure play is one referenced by investors to describe a publicly-traded firm that focuses its resources on a single business line.

Roberto Marques serves as Group CEO of Natura &Co and heads a Group Operating Committee comprised of the CEOs of each of the four businesses.

Collectively, these four autonomous yet interconnected brands have a presence in more than 110 countries and represent more than 8 million independent consultants and representatives, more than 35,000 associates (employees), and over 3,700 stores and franchises. Latin America is the only region in which all four brands operate in an integrated way. Ferreira, as Natura’s president, serves as CEO of Natura &Co in Latin America and is responsible for all four brands’ operations in the region.

4

Founded in 1969 by Luiz Seabra in São Paulo, Brazil, Natura’s body care, skin care, hair care and fragrance products currently are present in 10 countries through a network of 2.1‑million independent representatives, almost 600 company‑owned and franchised stores and a growing online platform. In 2014 Natura became the first publicly traded company to be certified as a B Corp. Carbon neutral since 2007, Natura received the UN Global Climate Action Award in 2019.

Founded in 1976 by Anita Roddick in Brighton, England, The Body Shop operates around 2,800 retail locations in 70 countries and was acquired by Natura &Co in 2017. Its naturally inspired skin care, body care, hair care and color cosmetics also are sold through The Body Shop At Home, its network of independent distributors established in 1994 by Roddick. The Body Shop maintains a strong commitment to social activism, particularly around animal testing and environmental sustainability. David Boynton serves as CEO.

Founded in 1987 by hairdresser Dennis Paphitis in Melbourne, Australia; acquired by Natura &Co in 2013. Aesop manufactures and sells skin, hair and body care products at storefronts throughout the world. The company remains headquartered in Melbourne and is led by CEO Michael O’Keefe.

Founded in 1886 and considered one of the most democratic beauty brands in the world, Avon connects people in more than 70 countries through its network of 6.3 million independent representatives, called beauty advisors. With the exception of its operations in the United States and Japan, Avon was acquired by Natura &Co in 2020. Avon has donated more than $1.1 billion to eradicating gender-based violence and breast cancer.

Angela Cretu serves as CEO of Avon International, is responsible for the business outside of Latin America and the oversight of the Avon brand globally. w w w. d i r e c t s e l l i n g n e w s . c o m 6 9

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What they share: Values—namely, a shared commitment to sustainability, animal welfare, human rights, and product integrity. While each brand has the resources to operate independently, “the whole is greater than the sum of the parts,” Ferreira says. The depth and breadth of this alliance enables Natura &Co to enact more impactful economic, social and political change.

To date, Natura, Aesop and The Body Shop all have individually earned B Corp certification, and Avon is expected to earn the designation within the next two to three years. Natura was, in fact, the first publicly traded company to be certified a B Corp. As of this year, the Natura &Co Group has its own certification, making it the largest B Corp in the world today. Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose. Members demonstrate commitment and work to reduce inequality and poverty, promote a healthier environment, stronger communities and the creation of more highquality jobs with dignity and purpose. In short, the designation represents a promise to generate value not just for stakeholders but for the society at large. During the pandemic, Natura &Co brands made R$121 million in donations divided among frontline domestic abuse services (on behalf of the Avon Foundation), essential products for NGOs, Red Cross and health organizations (Natura &Co Latin America), essential products in Australia (through Aesop and the Aesop Foundation 2020 Support Fund), and essential products for healthcare staff in emergency hospitals (on behalf of The Body Shop).

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CEO of Natura since 2016, when the company only had Natura and Aesop under its umbrella, Ferreira led the charge to refresh Natura’s direct selling model when he first came into the role. “We learned that we had failed to modernize our operations model and the offering for our Beauty Consultants to make the activity more attractive, more fulfilling, so that they would make better profits, and so on.

So, we redesigned our offering completely, moving from a one-size-fits-all to a segmented approach for the consultants, also offering progression into our commercial model, strengthening and modernizing our brand and the products we were offering consumers.” Additionally, Ferreira says, the company embraced digitalization as much as possible in

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an effort to “reduce the barriers in the transaction between consultants and ourselves and consultants and their clients and improve the quality of the offerings so they could have more information in their hands when doing business. And we succeeded in doing so. That’s what allowed us to invite other companies in such as The Body Shop and Avon.”

The Avon Acquisition

While it was then the world’s fifth-largest beauty company, generating $5.5 billion globally in 2018 through its network of more than 6 million independent beauty advisors, Avon had struggled to keep up with the ongoing evolution of consumer buying preferences and, subsequently, saw declining market share and revenues. However, the global brand had made an indelible impact on the lives of millions of women not only through its products and business opportunity but also its philanthropic commitments in excess of $1 billion.

For Natura &Co, Avon was a natural fit.

“They basically invented our industry, didn’t they?” Ferreira says of Avon. “That legacy deserves respect, and we admired that a lot. We thought that our own experience could help its renaissance.

How could such a well-known brand present in so many households for so long not do well? We understood that our own experience modernizing and upgrading our value proposition for clients and consultants would add a lot of value to Avon … modernizing the brand, strengthening it and adding digital tools to those relationships. Many Avon products are amazingly good, extremely high value for money, and yet people don’t know because we stopped telling those stories. We thought we could add value to Avon based on our own history and, of course, not only learn from them but achieve global scale through their enormous network.” In the short term, he says, Natura &Co is focused on resuming growth for Avon; and in the longer term, Avon will follow Natura’s steps to modernize the commercial

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offering for representatives, invest in the brand to make it younger and more modern, and build more robust digital solutions.

Angela Cretu, Global CEO of Avon, says the alliance couldn’t be better for the brand. “What excites me most is that this group has the ambition to be the best beauty company for the world,” she says. The primary focus of this purpose-driven organization, she adds, is “how to give more than we take. It was a very different experience to co-create with competitors in the past. This is a refreshing and empowering approach. We’re creating synergies while keeping our distinctive value proposition.” For example, “we can use each other’s geographic footprint to bring in other brands and gain faster access into new markets.” Each of the four brands under the Natura &Co umbrella, she adds, “cover specific customer preferences and, ultimately, can give the overall beauty industry and consumers more choice.”

Continued on page 76

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Q&A

With J.P. Ferreira, President of Natura and CEO of Natura &Co in Latin America and Angela Cretu, Global CEO, Avon Q: What are the challenges associated with running such a large entity with four companies under its umbrella?

J.P. FERREIRA: Determining how we complement each other in the eyes of consumers and their customers while protecting the identity and originality of each of those brands. Many of our associates don’t belong

“

to any particular brand anymore – for example, some of our factory workers are producing products for

We won’t lose the identity of the individual brands, but we come together to do good for society.

— J O Ã O PA U L O F E R R E I R A / P r e s i d e n t

all four brands, and our back-office functions … legal, finance, supply chain, HR, operating services for all of the companies. I think the pandemic helped quite a lot in terms of our culture. At the beginning of the pandemic, we pushed ourselves to go back to our roots and our purpose—that people come first. We didn’t know what would happen to the business.

We decided on three things. First, work to contain the compassion, and we did that by redirecting all of our production capacity to essential items for donations across Latin America.

We’ve donated millions of units of those products. Second, protect our people—not only our own associates but moreover our huge network of consultants, 4.5 million in Latin America.

We created emergency funds for them to support the most vulnerable with food, to provide telemedicine and, unfortunately, assistance for funeral services. Third, maintain the economy active because most of those consultants lost their jobs and didn’t have any other alternative to feed their families if not

of Natura and CEO of Natura &Co in

for their beauty consultant activity. So, we accelerated all of

Latin America

the digital features we’d been building for years and trained those consultants so they could continue to serve their clients remotely, which was a huge success. Because of that, during the

pandemic, right after the arrival of Avon, everyone stopped asking “Where do you come from?” because the purpose was much higher than that. This is what connects all of us. We won’t lose the identity of the individual brands, but we come together to do good for society.

Q: Are there any plans to continue to build the Avon brand independent of the Natura &Co brand even though Natura &Co is now the parent company?

ANGELA CRETU: Natura &Co is a company for the world, but in terms of individual brand expression, we have the resources to express our uniqueness. Avon is all about women’s empowerment—our dignity, financial independence and equality. The identity of our brand will continue to evolve … the beauty of this group is its diversity. But we’ve created a stronger and more cohesive voice as Natura &Co. Continued on page 74 w w w. d i r e c t s e l l i n g n e w s . c o m 7 3

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Q&A Continued from page 73

Q: What have you learned during the last 16 months?

J.P. FERREIRA: What I’ve learned is that people come first – that’s it. We have only Latin America, but we mapped the number [of COVID deaths] among our network of reps, and we’re counting 1,200 so far. If you look at the number of associates, it’s 20. We have some of the countries most affected by the

“

pandemic here. So, what’s the sense of talking about this year’s sales or profit projections? We need to focus on people first and what we can do internally and externally to try and support and influence public policy as well. But let me tell you one thing I experienced through that period, and I hope it will be a unique experience in my professional life. Our business improved tremendously. Our brands in Latin America have been rewarded as the strongest brands for society, and our company has the best reputation among all sectors—over Amazon, Facebook, Google— we’re ahead of them.

Consumers value the way we act. Consultant loyalty also is at its highest because consultants value and reward our loyalty. Similarly, our internal engagement surveys with our associates are well above internal benchmarks.

So, in hindsight, it may sound obvious, but doing the right thing bears good results in the end for everyone because people are here for a higher purpose. In the toughest moment, we didn’t hesitate and forgot all of those short-

It’s amazing to see how women around the world are united. This is the uniqueness of our industry.

— A N G E L A C R E T U / G l o b a l C E O , Avo n

term internal targets and did the most that we could for people, and that’s practical learning that I hope never to experience again.

ANGELA CRETU: People should always be the focus. That became obvious for everyone in this game. I hope that learning changes the way companies connect and nurture their own people. As a leader, I’ve learned that life is so dynamic—the market is changing at a fast pace, and as leaders, we should ask ourselves every morning, “Why would she choose me today?” I want to make sure I’m adding value to my own environment. It’s not an easy challenge, but it’s mine every day. I see my role as an enabler, not a dictator.

Q: How have the last 16 months changed Avon?

ANGELA CRETU: We were looking before to adapt our business model to meet trends in the marketplace, increase our omnichannel access and provide instant gratification. The pandemic completely changed the pace of that, but we still need to keep that high‑touch relationship. We stepped

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up our digital tools so beauty advisors s felt comfortable nurturing their customer relationships as much as possible, even when they couldn’t leave their homes.

Initially, people were trying to process the pandemic and were paralyzed. By acknowledging all of those fears, we were able to find solutions. We engaged beauty advisors in the discussion so they felt included as partners, and they rose to the challenge more than I could have ever imagined. It was a great reminder of the power of direct selling to create relationships no matter the crisis. We’ve received feedback from thousands of women that they felt unbearable pressure to hold multiple roles without knowing what tomorrow held, and they felt alone and isolated. So, we launched a “global gallery” and asked them to share their stories of how they were overcoming adversity— juggling motherhood and career, surviving breast cancer, overcoming domestic violence—and we received over 450,000 responses. Women tell us that “Whenever I doubt myself, I go there and just read one story from Saudi, from Germany, from Australia,” and it’s amazing to see how women around the world are united. This is the uniqueness of our industry.

build on that legacy. And we need to remain humble and open to learning new ways to connect with beauty advisors and customers.

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Q: How do you think Avon will continue to distinguish

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F E AT U R E

/

N AT U R A

& C O

/

AV O N

“

What excites me most is that this group has the ambition to be the best beauty company for the world.

— A N G E L A C R E T U / G l o b a l C E O , Avo n

Continued from page 72 Avon’s digitalization was already well underway when the global COVID-19 pandemic began. As stay-at-home orders became widespread, the company accelerated its timeline and quickly facilitated the expansion of digital tools to meet beauty advisors and consumers where they were and support online sales. Those efforts paid off; Avon International had a net revenue increase of 2.9 percent compared with 2019, and the four brands within Natura &Co achieved their highest market share ever in Latin America last year, “proving that this combination is very powerful,” Ferreira says. Avon’s integration, one of the group’s six priorities to boost value creation, represents a key component of the group’s growth projections. The group’s other five priorities are the acceleration of its omnichannel model and ongoing digitalization; creation of a unique beauty portfolio; expansion of its geographic footprint, especially in Asia; evolution of its business operating model; and its continued drive to create positive impact through its Commitment to Life. Natura &Co’s objective is for those six priorities to lead the company to high single-digit growth for the next couple of years.

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Commitment to Life for 2030

Last year, Natura &Co unveiled its Commitment to Life, a comprehensive 10-year sustainability plan which will step up the group’s actions to tackle some of the world’s most pressing issues, including the climate crisis and protecting the Amazon, the defense of human rights and ensuring equality and inclusion throughout its network, and embracing “circularity and regeneration,” or increased sustainability in packaging and formulas and greater investment in developing solutions like biotechnology and regenerative agriculture.

Natura has a 20-year history of building sustainable economic alternatives in the Amazon and currently preserves two million hectares of land, an area equivalent to half of the Netherlands. The company works with 34 local communities in the Amazon region, including more than 7,300 families, to help them develop sustainable business models that benefit the rainforest. It plans to expand its reach to 40 supplier communities and increase revenue streams with the use of 55 bio-ingredients, up from 39, a move which is expected to share at least R$60 (Brazilian Real) million with local Amazon communities. The Commitment to Life, Cretu says, represents a promise from shareholders not just to embrace a culture of sustainability and inclusiveness but to “step up and create a wave of change in society.” DSN

AUGUST 2021

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F E AT U R E

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S HUTD OWN LE ADS TO N E W O P P O R T U N I T I E S

Global Atomy Taking Off

>

ATOMY HAS MARKED ITS PRESENCE IN THE GLOBAL MARKET. The direct selling company based in South Korea recorded global sales of $1.48 billion in 2020,

up 13.85 percent from the previous year. It has also recently launched in China,

Colombia, Hong Kong, India, and New Zealand, with branches now in 19 regions

worldwide. Despite global distancing guidelines due to COVID-19, Atomy has achieved double-digit growth by actively pioneering the market. Atomy’s growth can be attributed to two factors—making a quick transition to online and securing a competitive advantage in distribution.

BY YOUNG -MIN LEE

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F E AT U R E

/ ATO MY

This first online Success Academy attracted 9,000 members who greeted each other on‑screen and experienced the future of online direct selling as presented by Atomy.

H A N - G I L L PA R K / C h a i r m a n o f A t o m y

>

Making a Quick Transition to Online

Atomy FOUNDED:

2009 HEADQUARTERS:

Gongju, South Korea TOP EXECUTIVE:

Han-Gill Park, Chairman PRODUCTS:

Clothing, Wellness, Cosmetics, Personal Care, Home Décor

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The World Health Organization declared a Public Health Emergency of International Concern regarding COVID-19 on January 30, 2020, followed by the declaration of a pandemic on March 11, 2020. As the virus spread, countries were forced to implement social distancing rules to curb the outbreak. Since meeting people is such a crucial part of direct selling, this news was crippling to the industry. In South Korea, physical distancing regulations went into effect on March 22, leaving direct sellers struggling to find countermeasures against the increasing uncertainty.

Most large-scale corporate events by Korean direct selling companies were canceled. However, Atomy was able to jump on a new possibility of the “on-tact” business or meeting face-to-face online. On July 17, 2020, Atomy hosted a live broadcast of its Success Academy on YouTube. Success Academy is a monthly training and motivational event traditionally held in

AUGUST 2021

7/21/21 5:21 PM

Be CustomerCentric Recognized.

The Customer-Centric Recognition (CCR) Program celebrates companies that are leading the way toward a customer-centric future for the industry. Qualifying companies utilize business models that boast high ER-CE N OM T

customer-to-distributor ratios and prioritize customer sales.

S

T

R

U

C

IC

CCR

ER-CE N OM T

T

S

G O L D

R

U C

IC

CCR R

D E C O G N I Z E

G O L D

D MER-CEN E C O G N I Z E TO T R S

CCR

C

IC

U

R

S

T

ER-CE P L N OM T R

A T I N U M

C

U

CCR

IC

person simultaneously in nine locations throughout Korea, including Seoul, Busan, and Incheon, with about 15,000 salespeople in attendance.

This first online Success Academy attracted 9,000 members who greeted each other on-screen and experienced the future of online direct selling as presented by Atomy. It was the moment that Atomy’s business world expanded from offline to online with 4K resolution, seamless live broadcasting, and business tools using VR technology. By August, participants numbered 13,000 globally, and sales were on track, as indicated by the company’s growth in 2020.

Executive Director of the Korea Direct Selling Industry Association, Tae-Oh Kim, stated, “Due to COVID-19, the direct selling industry has no choice but to think about contactless business. Atomy will become a benchmark for other companies in regard to eliminating constraints of time and space through on-tact business practices.”

Atomy’s ability to adapt quickly to online direct sales was due in part to broadcasting technology capabilities that the company had already built up for its Success Academies, which had been live-streamed to different locations. However, Atomy’s unique way of doing business also played a large role.

The CCR Program is based solely on a company’s customer-to-distributor ratio taking into consideration the following definitions:

R

D E C O G N I Z E

P L A T I N U M

■ Distributor—someone who DOES have a distributor agreement in place R

D E C O G N I Z E

■ Customer—someone who DOES NOT have a distributor agreement in place ■ Active is defined as each customer and distributor must have made a product purchase during the last six months. Active customer and distributor counts are limited to those in the U.S. and Canada.

Companies must have been in business for at least one year and have a minimum of $5 million in annual revenue. Qualifying companies must attain: 5:1 up to 10:1 for Gold status and 10:1 or more for Platinum status.

Submit Your CCR Program Application Today

DSN DIRECT SELLING NEWS

Companies who wish to learn more or submit a CCR Program Application can go to www.directsellingnews.com/ achievements/ccr-program/ or contact editor@directsellingnews.com

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F E AT U R E

/ ATO MY

“

The company sets up the business environment so that our salespeople can concentrate on building their businesses.

—KYUNG-HEE KIM / Marketing Director of Atomy

Its large-scale business presentations and motivational events are all directly organized by the company. There are no fees to participate, and accommodation is offered at less than cost pricing. Business tools are also provided below cost, so salespeople can focus on the scene of their businesses, whether it be at small meetings or personal gatherings set up by a center or leader.

“The company sets up the business environment so that our salespeople can concentrate on building their businesses,” explains Kyung-Hee Kim, Marketing Director of Atomy. She adds, “Atomy aims to create conditions for everyone to succeed through collaboration, not competition.”

Securing a Competitive Advantage in Distribution

Another factor driving the growth of Atomy is its “Absolute Quality Absolute Price” motto. During the CEO Council meeting for the World Federation of Direct Selling Association in Mexico City in 2019, Atomy Chairman Han-Gill Park highlighted that direct selling must have a competitive edge in the distribution industry to survive.

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Chairman Park shared how his company has grown into a global corporation exceeding $1 billion in sales in such a short time. He also spoke about the future direction of the direct selling industry that has been stagnant in recent years. Park emphasized, “Direct selling companies have the advantage of being able to curate high-quality products for its consumers.” He also stressed, “It is very important to realize that direct selling can win with quality and price over discount stores, online retailers, and other platform businesses.”

In this meeting attended 20 key figures in the industry.

Founded in 2009, Atomy established its motto of “Absolute Quality Absolute Price” from the very beginning. It means aiming for higher quality for the same price and a lower price for the same quality.

As a result of challenging other distributors and appealing to consumers equipped with this motto, Atomy has recorded an annual growth rate of 47 percent for 11 years. It also boasts the highest number of registered members and lowest rate of returns in the Korean direct selling industry. This indicates that putting distribution competitiveness ahead of business opportunities leads to success.

Chairman Park says that focusing on securing a competitive advantage is a smart marketing strategy.

If you have good products at a low price, consumers will come on their own initiative. If the number of consumers purchasing competitive products goes up, profits also increase for its direct sellers. This works better than simply concentrating on compensation based on sales and performance activity.

AUGUST 2021

7/21/21 5:22 PM

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F E AT U R E

/ ATO MY

One of the strongest assets of direct selling is the mutual trust formed between salespeople and their customers.

Unstoppable Global Expansion

Atomy launched in the USA in 2010 and posted sales of $5 million the following year. Atomy USA has continued to grow annually, with sales increasing tenfold to $55 million in 2020 merely a decade after opening. As a result of prioritizing a competitive edge in distribution over business opportunities, “Absolute Quality Absolute Price” has proven to be effective even in the United States, the world’s largest direct selling market.

The company’s global expansion has been unstoppable. After making its international debut in the USA, Atomy quickly advanced into the direct selling markets of Japan and Canada in 2011. Now, in just ten short years, Atomy has established branches in all parts of the world, including Southeast Asia, Russia, China, India, Australia, and Mexico, and will soon open in the U.K. The network marketing industry in Korea, which had no prior success entering into foreign markets, started paying attention to Atomy’s global expansion. Han-Gill Park emphasized in an earlier interview with Korean media that if everyday products are good and cheap, they will sell anywhere. He also said, “Atomy is not competing with other network marketing companies, but with other distribution channels such as department stores and home shopping.”

In April 2021, Atomy has over 15 million members in 19 regions. It also plans to open in Brazil, Kazakhstan, and Kyrgyzstan this year and aims to reach sales of $2 billion. “The year 2021 will be the first year that sales outside of Korea will surpass domestic sales,” noted Hyun-Woo Lee, Managing Director of Atomy Global Business.

He says, “Global Atomy is a consumer-centered direct selling company that plays a part in competitive distribution.”

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At a Crossroads

Direct selling is standing at a crossroads and not solely due to the effects of COVID-19. Advances in technology have given consumers access to a wealth of information that was unavailable in the past. Substitutions for products sold exclusively by direct selling companies can now easily be searched for and purchased online at low prices. This trend will only intensify over time.

Moreover, even when COVID has passed, daily routines may not return to pre-pandemic conditions, and much of day-to-day life will continue online. Therefore, direct selling must also find online solutions.

One of the strongest assets of direct selling is the mutual trust formed between salespeople and their customers. Unfortunately, this advantage is only half-realized online. No matter how advanced virtual reality becomes, it will never have the same effect as physical meetings and face-to-face communication.

Now, direct selling must involve both online and offline management.

Without skipping a beat, Atomy was able to embrace contactless business opportunities and use its products of Absolute Quality Absolute Price as a competitive advantage to see success in the face of the COVID crisis.

Atomy’s growth is a welcoming sign, and its future is full of promise. DSN

YOUNG-MIN LEE is the former editor of Nexteconomy which is a Korean direct selling industry magazine and currently serves as the editor of the Atomy company magazine.

AUGUST 2021

7/21/21 5:22 PM

Decision Makers Read DSN Direct Selling News subscribers are the top decision makers in the industry— 21% are owners and C-Level executives and another 41% hold senior management roles.

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W O R K I N G

S M A R T

/C O V I D -1 9

G LO B A L

B U S I N E S S

&

LO G I S T I C S

COVID-19 Global Business & Logistics Learn from of those businesses that succeeded and be prepared for the next big challenge.

BY MICHAEL MCCLELLAN

“T

HE POSTAL SERVICE™ is temporarily suspending international mail acceptance for certain destinations

due to impacts related to the COVID-19 pandemic and other unrelated service disruptions. Customers: please refrain from mailing items addressed to the

countries listed here until further notice.”

2020 taught us much about the global economy in which we now live. During the year 2020, all international carriers faced disruptions due to COVID-19. In response to these disruptions, carriers reacted with varying degrees of success. Some failed completely. Others struggled but survived. A select few even flourished—and enjoyed tremendous growth. What were the specific struggles that these companies faced? What made the difference between success and failure? And most importantly, how should we prepare for the future?

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ONLINE RETAIL SALES, 2018-2020 2019

2020

Percent change 2019 to 2020

March

April

May

March

April

May

March

April

May

Passengers (million)

70.7

67.4

71.9

34.6

2.9

8.3

-51.0%

-95.7%

-88.4%

Performed Departures (thousand)

716

694

725

608

211

207

-15.0%

-69.6%

-71.5%

Scheduled Departures (thousand)

719

697

727

712

335

212

-1.0%

-52.0%

-70.8%

Load Factor

0.84

0.83

0.85

0.48

0.12

0.37

-42.9%

-85.3%

-56.4%

Markets Served

6262

6141

6199

6192

4505

4211

-1.1%

-26.6%

-32.1%

Source: https://www.sciencedirect.com/science/article/pil/S2590198220301883

What were the struggles?

carriers had different rules, and interruption of the rules varied widely.

1. CUSTOMS BROKERAGE DELAYS Many customs brokerages shut down due to COVID-19 restrictions. Once they began to open again, a lack of employees caused significant backlogs and delays.

2. LACK OF PASSENGER PLANES Many carriers use passenger planes to transport packages.

Lack of passenger planes meant rerouting to cargo plans, which increased cost and caused backlogs. Domestic departures declined 71.5 percent in May 2020 as compared to the previous year. The number of domestic U.S. markets declined 32.1 percent as compared to the previous year per Science Direct.

3. RESTRICTIVE IMPORT POLICIES Countries and carriers implemented policies disallowing the receipt of international shipments. Each country and

4. LIMITED ABILITY TO EXPORT Lack of employees and in-country restrictions nullified, or at least limited, the ability of products to be shipped out of specific countries and markets. Between January 2020 and the beginning of April 2021, countries took more than 220 actions banning or limiting the export of certain products for COVID-19-related reasons, according to Global Trade Alert.

5. DEMAND SHIFTS Online orders increased substantially due to consumer preference shifts: Consumers were at home instead of in the office, shopping preference shifted to online versus in-store.

EXPORT RESTRICTIONS DURING COVID-19 140 120 100 80 60 40 20

Restrictions Imposed

Restrictions Removed

Mar-21

Feb-21

Jan-21

Dec-20

Nov-20

Oct-20

Sep-20

Aug-20

Jul-20

Jun-20

May-20

Apr-20

Mar-20

Jan-20

Feb-20

0

Total Restrictions in Place

Source: Global Trade Alert, January 1, 2020-April 1, 2021

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S M A R T

/C O V I D -1 9

G LO B A L

B U S I N E S S

What made the difference for those businesses that succeeded vs. those that failed?

Many companies suffered great costs to their brand and image because their poor supply chain implementation prevented them from fulfilling their products to customers.

So, what did the successful companies do to avoid these costs and be prepared for disruptions and demand shifts?

1

THEY PRIORITIZED THEIR SUPPLY CHAIN STRATEGIES AND RELATIONSHIPS as a key part of their business prior to the disruptions and changes introduced by COVID. Most companies spend a lot of money selling and marketing their products; but if those products can’t get to the customer, it’s all in vain. The companies that had good logistic partners were prepared and able to quickly adjust.

No matter how good you are at sales and marketing, you can’t make money if customers can’t get your products.

“As a result of our relationships with our carriers and brokers, we were able to quickly get new products approved to international markets, reroute products, or even change carriers quickly to enable our clients to successfully grow their business during a challenging time,” said Tanner Carlson, VP Logistics at Global Access.

&

LO G I S T I C S

2

THEY HAD REDUNDANCY IN THEIR CARRIER AND BROKERAGE SOLUTIONS. Ideally, you have a key partner that can quickly move your products to different shipping and brokerage solutions.

Companies with a single carrier were stuck with the rules, complications, and restrictions of that partner. Each carrier implemented restrictions and had challenges that were vastly different. Each brokerage (even in the same country) had different challenges and restrictions. Carriers use different clearance methods, and each different clearance method had different rules and restrictions based on country-specific policy and circumstance.

3

THEY HAD A STRONG U.S. SHIPPING SOLUTION TO INTERNATIONAL MARKETS.

Companies that had a strong U.S. Not For Resale (NFR) business to international markets were able to quickly shift from challenges (lack of in-country inventory, local employment restrictions, new products not registered in country, and so forth) with on-the-ground (OTG) operations to a successful NFR shipping model. Most on-the-ground international operations struggled more than U.S.-based operations to get products across borders and to get

GLOBAL ECONOMIC IMPACTS OF COVID-19 LOCKDOWN MEASURES Total trade Rank

Imports

Port

iso3

Change (MT)

1

Ningbo

CHN

2

Rotterdam

NLD

3

Shangai

4

Wuhan

Exports

Port

iso3

Change (MT)

Port

iso3

Change (MT)

-68.5

Ningbo

CHN

-43.2

Rotterdam

NLD

-43.5

Ningbo

CHN

-25.0

-40.1

Tubarao

BRA

CHN

-32.5

Shangai

-17.1

CHN

-22.4

Novorossiysk

RUS

-11.5

CHN

-21.6

Zhoushan

CHN

-13.8

Wuhan

CHN

-10.9

5

Tubarao

BRA

-20.7

Amsterdam

NLD

-12.2

Beaumont

USA

-10.6

6

Zhoushan

CHN

-18.8

Rizhao

CHN

-11.3

Dampier

AUS

-10.2

7

Amsterdam

NLD

-17.4

Wuhan

CHN

-10.7

Shangai

CHN

-10.1

8

Shekou

CHN

-14.2

Mina Al Ahmadi

KWT

-9.5

Haypoint

AUS

-9.2

9

Hong Kong

HKG

-12.3

Vlissingen

NLD

-8.5

Lumut

MYS

-7.6

10

Vlissingen

NLD

-12.2

Zhanjiang

CHN

-7.6

Shekou

CHN

-7.5

11

Singapore

SGP

-12.1

Umm Said

QAT

-7.4

Tianjin

CHN

-7.3

12

Rizhao

CHN

-11.7

Yokohama

JPN

-7.3

Fujairah

ARE

-7.2

13

Novorossiysk

RUS

-11.7

Ghent

BEL

-7.1

Tangshan

CHN

-6.3

14

Lumut

MYS

-11.6

Singapore

SGP

-6.8

Xiamen

CHN

-6.1

15

Dampier

AUS

-10.8

Hong Kong

HKG

-6.7

Itaqui

BRA

-5.8

16

Yokohama

JPN

-9.9

Shekou

CHN

-6.7

Bohai Bay

CHN

-5.7

17

Haypoint

AUS

-9.7

Krishnapatnam

IND

-6.7

Puerto Bolivar

COL

-5.7

18

Beaumont

USA

-9.5

Magdalla

IND

-6.6

Hong Kong

HKG

-5.6

19

Ghent

BEL

-9.4

Port of Le Havre

FRA

-6.4

Primorsk

RUS

-5.5

20

Zhanjiang

CHN

-9.1

New York-New Jersey

USA

-6.0

Richards Bay

ZAF

-5.4

The top 20 total trade, imports and export losses on a port-level expressed in million tonnes (MT). The losses cover the period Jan-Aug 2020 compared to Jan-Aug 2019 https://doi.org/10.1371/journal.pone.0248818.t001

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ONLINE RETAIL SALES, 2018-2020 Economy

Online retail sales ($ billions)

Retail sales ($ billions)

Online share (% of retail sales)

2018

2019

2020

2018

2019

2020

2018

2019

2020

Australia

13.5

14.4

22.9

239

229

242

5.6

6.3

9.4

Canada

13.9

16.5

28.1

467

462

452

3.0

3.6

6.2

1,060.4

1,233.6

1,414.3

5,755

5,957

5,681

18.4

20.7

24.9

76.8

84.3

104.4

423

406

403

18.2

20.8

25.9

1.6

1.9

3.2

34

32

27

4.7

5.9

11.7

United Kingdom

84.0

89.0

130.6

565

564

560

14.9

15.8

23.3

United States

519.6

598.0

791.7

5,269

5,452

5,638

9.9

11.0

14.0

Economies above

1,770

2,038

2,495

12,752

13,102

13,003

14

16

19

China Korea (Rep.) Singapore

Source: UNICTAD, based on national statistics offices.

inventory resupply. Registrations of new products in international countries, which normally take 3-6 months, were stopped, backlogged, or substantially delayed.

4

THEY HAD AN INVENTORY SUPPLY OF ONE TO TWO PLUS THEIR PRIMARY SOURCE. Some companies were able to adjust from their primary inventory source for their products. Others were not. If you can’t get your products from more than one location or source, you have a significant failure point for your entire business. Many companies had products or ingredients coming out of China and could not get inventory.

5

THEY BALANCED JUST-IN-TIME (JIT) INVENTORY WITH PLANNED INVENTORY SUPPLY. Many just-in-time models suffered significantly as a result of one ingredient or portion of the supply chain having a shortage. Those with a reserve supply and inventory on hand survived much better than those that did not. The cost savings of JIT versus the lost sales and brand reputation of not being able to deliver need to be weighed carefully. It is important to plan for disruptions in the supply chain and weigh the costs of not having inventory.

6

THEY HAD THE CAPABILITY FOR PRODUCT INNOVATION AND CHANGE. Companies that had the ability to quickly innovate new products or repackage products did much better. Some examples include hand sanitizers, masks, and health supplements for the immune system. Companies that had products that were generally used at businesses (offices, restaurants, bars, clubs, stores) had to be repackaged or adjusted for home use. Many manufacturers had limitations on switching between products made for business use versus home use (quantity, packaging, and use cases). For example, we had a shortage of home toilet paper, but a surplus of commercial toilet paper.

There were companies that were able to adapt or even optimize pre-COVID demand, while other companies were able to take advantage of new emergent demand.

Companies able to innovate and adapt to online international sales had huge gains in 2020.

How do we prepare for the future?

History tends to repeat itself. What will we do now to prepare for when it does?

Whether it is a resurgence of some type of COVID, a drought, a lumber shortage, legal changes, or something yet unknown, the solution is the same: it is important to understand your failure points and have a plan in place. It is most effective to utilize the infrastructure that key partners have already put into place, as it can be very costly to build your own. Take the time to visit with your suppliers and partners to find out what their plans are and run them through different future challenges.

The key is to review what the struggles were, what made the difference for those that succeeded and failed, and then take action to cement your place among the successful.

“A wise man learns by the experiences of others; an ordinary man learns by his own experience; a fool learns by nobody’s experiences,” advises an American proverb.

Let us all aspire to be the wise men and women. Learn from the experiences of those businesses that succeeded in the face of a global pandemic and ensure your business is prepared to overcome the next big challenge the future throws at us. DSN

MICHAEL MCCLELLAN is the vice president of sales with Global Access. Global Access customizes solutions for clients that simplify the complexities of cross-border commerce. w w w. d i r e c t s e l l i n g n e w s . c o m 8 9

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MAINSTREAMING THE CHANNEL DSEF Fellows Make a Difference for Direct Selling Through their direct selling-related research, co-created teaching content, and case studies, nearly 250 DSEF Fellows from universities across the US are changing how direct selling is taught

“It has been a privilege to serve as a DSEF Fellow.

I have been able to include multiple direct sellingrelated case studies in the fifth edition of a textbook on entrepreneurship and to complete multiple innovative academic and industry research projects. Each experience has resulted in growth and opportunity. The results have been clear and measurable.

Dr. Caroline Glackin Associate Professor of Entrepreneurship Fayetteville State University

“As a DSEF Fellow, I was able to develop a teaching case that connected my research interest in effectuation and social entrepreneurship with the founders of Trades of Hope. As a bonus, many students were introduced to the direct selling distribution channel as an avenue for social entrepreneurship.

Dr. Christine Mollenkopf–Pigsley Assistant Professor & Program Director in Applied Organizational Studies Minnesota State University, Mankato

and viewed. Here’s what they have to say about their partnership with DSEF.

“As a DSEF Fellow, I have access to a rich variety of teaching materials, including case studies, videos, peer-reviewed research, and teaching notes. These materials inform and complement concepts I discuss in the classroom, and help me keep my content current. By participating in DSEF-hosted functions, I’ve had the opportunity to network with the leadership of direct selling organizations from around the world, which has led to several top executives visiting our campus as guest speakers.

Dr. Adam Mills Assistant Professor of Marketing Loyola University New Orleans

1667 K Street, NW, Suite 1100, Washington, D.C. 202-452-8866

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•

info@dsef.org

•

www.dsef.org

7/21/21 5:32 PM

D S A

M E S S AG E

/

Moving Forward Together

H

ERE IN the U.S., August signifies the end of summer. The beach and camping gear are packed away, and, in a sense, a return to normal begins.

For students, it’s going back to the routine of getting up and going to school. For adults, it’s resuming the work–life balance that for the previous few months had been heavily weighted on “life.”

August is also the time that organizations typically finalize their plans for the upcoming year. Many of you are likely in the process of fine-tuning your operating strategies and budgets for 2022.

At DSA, our focus over the last year and a half has been to ensure member companies have the information they need to move through the chaos brought on by the pandemic. We have taken the lessons learned from 2020 and have offered insights for keeping your businesses moving forward.

During the past 16 months, more than 5,000 industry executives have participated in our webinars and virtual events. This past June, DSA ENGAGE 2021: The Virtual Interactive Experience drew more than 500 registered attendees looking for answers on such topics as social media, supply chain and operations, technology, and public affairs and communications.

Modernizing the channel’s reputation arose as a focus of DSA’s new Chairman, Kevin Guest, the CEO and Chairman of the Board of USANA Health Sciences. He believes in the importance of shaping an image of direct selling that can further our channel’s brands’ ability to capture increased market share.

MELISSA K. BRUNTON Senior Vice President, Education & Meeting Services, DSA

#COMMUNITY #STRONGERTOGETHER

During the coming months, we will continue these conversations at DSA ENGAGE: Moving Forward Together to Better, to be held October 31–November 2 in New Orleans. I urge all DSA members to register today.

These critical conversations will also continue across the additional in-person DSA events scheduled for the coming months: • The 2021 Women’s Industry Leadership Retreat will assemble the channel’s top women leaders to discuss their plans for 2022.

The event will be held October 6-8 in Tulsa, Oklahoma. DSA thanks Joni Rogers-Kante, Founder and CEO of SeneGence, for hosting this event.

• The Direct Selling Compliance Certification Program (DSCCP) will be held October 12-13 in Washington, DC. This event will sharpen attendees’ understanding of crucial compliance-related concepts that will help improve their company’s reputation.

• The 12-hour DSCCP will be held in conjunction with the DSA Legal & Regulatory Seminar, which is scheduled for October 13-15 in Washington, DC. Registration for both events is now open at DSA.org.

The recently released DSA Growth & Outlook Survey revealed that 2020 was a recordbreaking year for direct selling in the United States. By moving forward together, we can keep that momentum going.

We look forward to collaborating with you and seeing you in person this fall. DSN

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For nearly 50 years, Squire & Company has provided financial excellence and NetSuite expertise for clients in the Direct Selling industry. We offer personal service, responsiveness, and expertise in all areas.

INTERNATIONAL PAYOUT SYSTEMS INC. 540 NE 4th St. Fort Lauderdale, FL 33301 866-218-4668 i-payout.com

More payment options in 150 countries via the most flexible and customizable software solution. Unbeatable pricing.

PAYQUICKER 400 Linden Oaks, Suite 320 Rochester, NY 14625 844-258-3006 www.payquicker.com Instantly make secure and compliant global payouts to your distributors in local currency with PayQuicker’s fully customizable, client-branded solution. We offer secured bank accounts with prepaid debit cards, virtual cards and more—all through a single point of integration.

1160 N. Town Center Drive, Ste. 100 Las Vegas, NV 89144 702-757-9600 www.metricsglobal.com

Landing a more sophisticated brand of talent takes a more sophisticated recruiting partner.

Bringing 25 years of Direct Sales executivelevel experience from around the world and with a Team speaking 5 languages we know what it looks like to have success in a diverse and international environment. Our goal is to become an extension of your brand.

SCP offers the most holistic consulting services specific to direct selling companies today. We’ve worked with more than 70 companies over the last three years alone, and served more than 250 years collectively in the industry.

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Complete Merchant Solutions (CMS) is a full-service US merchant account provider representing multiple banks. CMS safely and securely supports many types of payment processing for direct selling companies.

Keller, TX 817-697-4321 www.cpkrell.com

LaCore Payment Technologies is a payment platform designed to support direct selling companies globally. Our services include: Global connectivity to 150 countries in 50 currencies, including direct connectivity to most alternative payment types, secure tokenization, customized fraud solutions, including our proprietary Fraudhawk™, advanced reporting tools, and online dispute management.

S ELLING NE WS

727 North 1550 East 3rd Floor, Orem, UT 84097 877-267-4324 www.cmsonline.com

METRICS GLOBAL, INC

STRATEGIC CHOICE PARTNERS

9 2 D I R E C T

COMPLETE MERCHANT SOLUTIONS

CP & KRELL GROUP

LACORE PAYMENT TECHNOLOGIES

900 Wilmeth Road, McKinney Texas 75069 Info@lacoretechnologies.com www.lacorepayments.com/

C R E D I T C A R D/ PAY M E N T P R O C E S S I N G

1329 South 800 East Orem, Utah 84097 801-515-0977 www.squire.com

C O M M I S S I O N PAY M E N T S E R V I C E S

SQUIRE

C O N S U LTA N T S /M A N A G E M E N T

C O M M I S S I O N PAY M E N T S E R V I C E S

A C C O U N T I N G S O F T WA R E /S E R V I C E S

SUPPLIER DIRECTORY

2201 Long Prairie Road, Ste. 107-316 Flower Mound, TX 75022 407-891-9265 https://strategicchoicepartners.com/

We are the industry’s leading payments partner, long-established advocate, and problem-solver. Our unified commerce & payments platform will connect you to a global marketplace, enable your international expansion strategy, and fuel your exponential growth plans. Let us show you how.

Contact Us: info@metricsglobal.com

NEXIO 727 N 1550 E, 3rd Floor Orem, UT 84097 1-877-551-5504 www.nexiohub.com Nexio manages the chaos of payments offering: • Faster roll out for distributors or partners • Simplifies payment processing for corporations Nexio does this by being integrated with the majority of back-office software solutions in the Direct Sales Industry.

AUGUST 2021

7/21/21 5:34 PM

150 Stewart Parkway Greensboro, GA 30642 866-843-3827 www.a2bf.com Since 2001, a2b Fulfillment has been helping companies work smarter by outsourcing business support services, including order fulfillment, customer care, and valueadded solutions. Its same-day fulfillment philosophy ensures that customers aren’t waiting, and its one-call customer service resolution standard keeps them coming back.

GLOBAL ACCESS 2889 Ashton Blvd, Ste. 350 Salt Lake City, UT 84070 877-811-8108 www.globalaccess.com International expansion expertise and technology and logistics solutions that grow clients’ businesses and brands around the world.

EVENT PRODUCTION

A2B FULFILLMENT

D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S

KATAPULT EVENTS 5840 Red Bug Lake Rd, Ste. 140 Winter Springs, FL 32708 407-915-9060 www.katapultevents.com Fresh. Exciting. Bold. Your field deserves the best and we help you deliver. Out-of-the-box creative production with experienced show management. We execute on budget and make you look AMAZING!

AMWARE FULFILLMENT

LACORE LOGISTICS

MULTI IMAGE GROUP

4505 Newpoint Place Lawrenceville, GA 30043 866-888-2999 Sales@AmwareLogistics.com www.AmwareLogistics.com

900 Wilmeth Road, McKinney Texas 75069 214-817-4802 www.lacorelogistics.com

1701 Clint Moore Road Boca Raton, FL 33487 800-523-2682 www.mig.cc

Handle fulfillment for 14 direct sellers.

DSA member with 15 fulfillment centers, nationwide, for 1–2 day delivery to 95% of the US. Offer comprehensive B2C fulfillment services, including complex kitting, plus discounted parcel shipping based on our large volume of freight.

LaCore Logistics provides distribution and order fulfillment services. Our highly automated distribution center provides both domestic and international direct-to-consumer shipping solutions. We offer omni-channel fulfillment solutions ranging from marketplace fulfillment for leading marketplaces to businessto-business fulfillment for leading retailers.

Established in 1979, Multi Image Group (MIG) is a women-owned, family-run creative event production company fueled by innovators, strategists, and technologists who craft custom virtual, hybrid, and in-person live experiences for some of the world’s biggest brands.

CANADA CARTAGE LOGISTICS SOLUTIONS

VERST E COMMERCE FULFILLMENT

HANNA SHEA

Single Source Solutions, Order to Delivery B2C Solutions, On-Time Order Fulfillment, Real-Time Inventory Visibility, NHP Site Compliant, SOP/GMP Compliant, and locations across Canada.

Verst offers robotic picking, 99% order accuracy, 6.5+M sf scalable warehousing space, air/rail-served, 1-2 days to over 85% of the U.S. Services include pick-pack, labeling, kitting, and custom packaging.

Our Business Is… An Extension of Your Business

1615 Clark Blvd.

Brampton, Ontario L6T 4W1 905-564-2115 x2 www.canadacartage.com/logistics

300 Shorland Dr., Walton, KY 41094 800-978-9307 www.verstlogistics.com

E X E C U T I V E R E C R U I TM E N T

D I S T R I B U T I O N / F U L F I L L M E N T/ LO G I S T I C S

TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIREC TSELLINGNEWS.COM

1835 W Chandler Blvd 103, Chandler, AZ 85224 844-344-7177 www.hannashea.com Since 2007, Hanna Shea Executive Search has been the go-to search firm in support of the direct selling industry. Hanna Shea finds top talent for companies in need of building or improving an executive leadership team for organizational success.

w w w. d i r e c t s e l l i n g n e w s . c o m 93 PMS 70% Black

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PMS 7686

7/21/21 5:34 PM

ROYAL CARIBBEAN INTERNATIONAL

1080 Caribbean Way Miami, FL 33132 Royal Caribbean International’s Corporate Sales Team 800-345-7225 (SELECT 2, THEN 1) www.royalcaribbeanincentives.com

M A N U FA C T U R I N G/ P R O D . D E V E LO P M E N T

ICONIC SHIPS. EPIC ADVENTURES. ULTIMATE EVENTS. Royal Caribbean® transforms events into the ultimate productivity paradise. Impress your attendees with epic venues, vibrant restaurants, onboard thrills and beautiful destinations.

PROGRESSIVE LABORATORIES 3131 Story Road W Irving, TX 75038 972-518-9660 www.progressivelabs.com 40+ years of quality manufacturing of nutritional formulas specializing in capsules and powders. FDA registered and 3rd party UL certified facility.

9 4 D I R E C T

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2435 Goodwin Lane New Braunfels, TX 78132 sales@dsa.harlandclarke.com http://dsahome.harlandclarke.com/ Harland Clarke provides customer engagement solutions that help connect your business and salesforce with their customers. Harland Clarke provides relevant business building products and solutions to direct selling companies and have developed turn-key, customized solutions designed to provide additional profit centers for your company while ensuring brand compliance and standardization.

NOW TECH 5800 Democracy Drive, Suite 100 Plano, TX 75024 310-428-9936 www.now-tech.com The most comprehensive and powerful business management solution for direct sellers. We put more than 35 years of industry experience into creating strategies and tools to consistently grow your business. Contact us for a demo today.

SMART OFFICE SOLUTIONS, INC.

217 N. Westmonte Drive, Ste. 1007 Altamonte Springs, FL 32714 800-891-8601 www.SmartOfficeSolutions.com Your mobile strategy should be as smart as the phone in your pocket. Make a powerful statement about the value of social networks and personal connections with the SmartMobile app. Transform every share, text, call, and email into a positive sales and recruiting result.

MOBILE APPS & COMMERCE

Dion’s jewelry solutions are perfect for career path, sales & recruiting, corporate anniversaries and incentive travel recognition awards.

HARLAND CLARKE

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

33 Franklin McKay Road Attleboro, MA 02703 800-445-1007 www.eadion.com

M A R K E T I N G/ B R A N D I N G

E.A. DION, INC.

MOBILE APPS & COMMERCE

INCENTIVES/RECOGNITION

SUPPLIER DIRECTORY SOCIALSALES.IO 2024 W. 15th St., Ste. F-324 Plano, TX 75075 214-659-1549 hello@socialsales.io www.socialsales.io Convert your social fans into paying customers. Our global SaaS platform includes the tools your sales force needs to succeed in today’s social selling environment. Scalable to fit any sized organization from startups to large global enterprises.

BYDESIGN TECHNOLOGIES 9503 Princess Palm Avenue Tampa, FL 33619 813-253-2235 www.bydesign.com Award winning SaaS solutions including Geneology Management & Commissions, Inventory, Replicated Websites, Premier Rep Tools, Branded Mobile App, Virtual Parties, E-vites, Hostess Rewards, Bookings, Social Sharing, Promotions, & Shopping.

DIRECTSCALE 1510 N. State St. Orem, Utah 84057 801-701-3285 www.directscale.com The most customizable enterprise SaaS platform for managing all aspects of your direct selling, affiliate and influencer marketing business. Edit your comp plan and test it against your live data! From startup to billion dollar company, it automatically scales to meet your needs so you never have to upgrade again.

AUGUST 2021

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The AI-powered messaging and analytics platform. Be a better opportunity in the gig economy. Actionable dashboards and automated opportunities that get your field and customers engaged into measurable action anywhere in the world.

INTERNATIONAL DIRECT SELLING TECHNOLOGY CORP. 1208 E. Kennedy Blvd., Ste. 222 Tampa, FL 33602 813-277-0625 www.idstc.com

Global Operations Management Software.

Advanced Comp Plan Programming. Sales Force Backoffice & Automation. Web Site Design & Replication.

EXIGO

JENKON

1600 Viceroy Dr., Suite 125 Dallas, TX 75235 214-367-9933 www.exigo.com

915 Broadway Street, Ste. 400 Vancouver, WA 98660 360-256-4400 www.jenkon.com

The global leader in cloud-based Platformas-a-Service (PaaS) for direct selling companies. An open framework for billiondollar giants to startup companies. Exigo supports MLM, Party Plan and Affiliate models, operating in single global markets.

From Startup to Enterprise, Jenkon provides Direct Selling companies an award-winning, scalable platform unifying the future of direct selling: Openness, connectivity, omni-channel and conversational marketing.

INFOTRAX SYSTEMS

MW2 DIRECT

1875 S. State Street, Ste. 3000 Orem, UT 84097 801-431-4900 www.infotraxsys.com

2033 Gateway Place, 5th Floor San Jose, CA 95110 408-573-6310 www.mw2consulting.com/direct

Software & SaaS solutions for startup, emerging, and global direct selling companies. See our ad on the back cover.

Combine the Magento Platform with powerful social and direct selling features available in the MW2 Direct platform.

Solving Digital Transformation for direct selling with personalization, party management, influencer marketing, commission, analytics.

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

929 Colorado Ave Santa Monica, CA 90401 310-730-1246 CustomerCare@directechlabs.com www.directechlabs.com

THATCHER TECHNOLOGY GROUP, LLC 55 Shuman Blvd., Ste. 350 Naperville, IL 60563 866-698-3848 www.thatchertech.com

Thatcher Technology Group provides Sales Force, Compensation and Incentive Management Software for the Direct Selling Industry.

XIRECT SOFTWARE SOLUTIONS

686 E 110 S Unit 104 American Fork, UT 84003 385-448-1800 www.xirect.com Scalable software from startup to enterprise. Your delivery expert in Commissions Calc / Consulting, Replicating Websites, E-Commerce, Reporting, Promotions, Localization, Multi-Currency, and more- The Perfect Cloud-based Direct Selling Software Partner!

TA X S E R V I C E S

DIRECTECH LABS

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

S O F T WA R E / T E C H N O LO GY S O LU T I O N S

TO BE INCLUDED IN THE SUPPLIER DIRECTORY, EMAIL ADVERTISING@DIREC TSELLINGNEWS.COM

SOVOS 200 Ballardvale St. Wilmington, MA 01887 1-866-890-3970 www.sovos.com Sovos was built to solve the complexities of the digital transformation of tax with complete, connected offerings for global compliance. Our SaaS products integrate with a variety of business applications and government compliance processes.

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A boutique investment banking, business development and corporate finance advisory firm with a primary focus on the direct selling vertical.

Stuart Johnson, the Founder and Chief Executive Officer of SUCCESS Partners and Direct Selling News, is a cofounder of the new firm. Direct Selling Capital Advisors’ experience and relationships are unmatched within the direct selling community.

SERVICES OFFERED INCLUDE: • Buy side and sell side M&A advisory • Equity and debt financing • Proprietary transactions • Joint venture and partnership opportunities • Institutional advisory

The firm has quickly established itself as a significant resource for direct selling industry participants and is actively engaged in the marketing of potential transactions in excess of $700 million.

info@directsellingcapital.com

Stuart Johnson, Partner | spj@directsellingcapital.com Ryan Bright, Partner | jrb@directsellingcapital.com

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CONNECT TO YOUR FIELD AND TO CUSTOMERS ALL FROM ONE PLACE. MARKETING AND CUSTOMER ACQUISITION Social Selling Video Commerce Sampling

COMMUNITY AND TRAINING Onboarding Smart Prompts In-App Chat

BUSINESS MANAGEMENT CRM and Lead Management Prospecting

310-428-9936 Info@now-tech.com Now-tech.com

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HELPING YOU CARE FOR YOUR MOST IMPORTANT ASSET We help you support those who support you by providing a best-in-class commission solution — FlexCloud. Our

experts will show you how to use FlexCloud to explore

801.431.4900 | infotraxsys.com

new strategies, take advantage of industry trends, and find the new life hidden in your comp plan. Contact us today to see what your data can do for you.

Reach your potential with FlexCloud.

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VOLUME 17 ISSUE 8

DIRECT SELLING NEWS

DirectSellingNews.com