Telecom Plus - Direct Selling News https://www.directsellingnews.com The News You Need. The Name You Trust. Tue, 21 Nov 2023 17:54:37 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.2 https://www.directsellingnews.com/wp-content/uploads/2021/04/DSN-favicon-150x150.png Telecom Plus - Direct Selling News https://www.directsellingnews.com 32 32 Telecom Plus Reports 57% Increase in Half-Year 2023 Revenue  https://www.directsellingnews.com/2023/11/21/telecom-plus-reports-57-increase-in-half-year-2023-revenue/?utm_source=rss&utm_medium=rss&utm_campaign=telecom-plus-reports-57-increase-in-half-year-2023-revenue Tue, 21 Nov 2023 17:54:33 +0000 https://www.directsellingnews.com/?p=20272 Telecom Plus, trading as Utility Warehouse, released its financial results for the first six months of 2023, reporting a 57% spike in revenue over the previous year’s period to $1.1 billion. Adjusted pre-tax profit was also up 36% to $54.7 million.

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Telecom Plus, trading as Utility Warehouse (UW), released its financial results for the first six months of 2023, reporting a 57% spike in revenue over the previous year’s period to $1.1 billion. Adjusted pre-tax profit was also up 36% to $54.7 million. 

Customer numbers reached 949,180, a more than 62,000 person increase since March 2023. Total services supplied was just shy of 3 million, an increase from 2.7 million in March 2023. The company is now the seventh largest energy supplier in the UK. 

“We have consistently offered the lowest-priced energy tariffs in the UK for over 2 years,” said Stuart Burnett, Co-CEO. “Our unique multiservice model means we can continue to sustainably beat the competition, and is the primary driver of our continued rapid growth. We are fast approaching the 1 million customer milestone, and our current rate of growth places us firmly on track to double the size of the business by welcoming a further million customers to UW over the medium term.” 

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Utility Warehouse Sees Record Organic Growth in 2023  https://www.directsellingnews.com/2023/06/27/utility-warehouse-sees-record-organic-growth-in-2023/?utm_source=rss&utm_medium=rss&utm_campaign=utility-warehouse-sees-record-organic-growth-in-2023 Tue, 27 Jun 2023 14:50:41 +0000 https://www.directsellingnews.com/?p=19324 Utility Warehouse announced its final results for the full year, ending March 31, 2023. Revenues during this time grew to $3.1 billion, up from $1.2 billion in 2022. Adjusted pre-tax profit was up by 55% and adjusted EPS increased by 57%. 

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Utility Warehouse (UW) announced its final results for the full year, ending March 31, 2023. Revenues during this time grew to $3.1 billion, up from $1.2 billion in 2022. Adjusted pre-tax profit was up by 55% and adjusted EPS increased by 57%. 

The company announced record organic growth in its operations, including a 22% increase in customers. UW’s total customer base now number 886,579, compared to 728,680 in 2022. There was also a 24% increase in the number of services supplied, which now total 2.8 million, as opposed to 2.3 million in 2022. Partner numbers increased 25% to 60,000 and insurance business more than doubled to 100,000 policies. 

“This has been an outstanding year for the company: the fundamental strengths of our business model have reasserted themselves and delivered a strong outcome for all our stakeholders— particularly for our customers who benefitted from the lowest energy prices in the country throughout the year, saving over £30m on their bills,” said UW Co-CEOs Andrew Lindsay and Stuart Burnett in a joint statement. “However, we seek to go further than simply helping customers to save time and money on their household bills: through the UW Partner opportunity, thousands of people across the UK are earning a much-needed additional income every month. We expect the ongoing pressure on household budgets to continue to drive significant growth in the number of Partners recommending our market-leading services to their friends and family. This unique combination of offering consumers both meaningful savings and additional earnings in the current economic environment underpins our target of welcoming an additional million customers to UW over the medium term.” 

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Utility Warehouse Supports Local Charities  https://www.directsellingnews.com/2023/06/22/utility-warehouse-supports-local-charities/?utm_source=rss&utm_medium=rss&utm_campaign=utility-warehouse-supports-local-charities Thu, 22 Jun 2023 16:04:12 +0000 https://www.directsellingnews.com/?p=19246 Utility Warehouse, through its philanthropic arm the UW Foundation, donated £18,000 to four local charities: The Lavender Touch, Borders Carers Centre, Stable Life and Borders Children’s Charity. 

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Utility Warehouse (UW), through its philanthropic arm the UW Foundation, donated £18,000, or almost $23,000, to four local charities in its community of Selkirk. Charities who will receive these donations include The Lavender Touch, Borders Carers Centre, Stable Life and Borders Children’s Charity. 

This charitable initiative was pledged as part of the company’s official opening of the new customer service hub within the town. UW selected the location for its customer service hub because of its concentration of people in the community with high levels of customer service experience in the energy industry. Forming this hub will allow UW to keep jobs locally within the area. 

“We’re committed to investing in Selkirk and creating local jobs and long-term career opportunities with our new hub which will provide the very best support for our prepayment customers,” said Andrew Lindsay, Utility Warehouse Co-CEO. “We’re also delighted to donate £18,000 to four fantastic local charities and help support the wider community.” 

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Utility Warehouse / Ranked #10 on DSN Global 100 List https://www.directsellingnews.com/2023/06/19/utility-warehouse-ranked-10-on-dsn-global-100-list/?utm_source=rss&utm_medium=rss&utm_campaign=utility-warehouse-ranked-10-on-dsn-global-100-list Mon, 19 Jun 2023 14:42:00 +0000 https://www.directsellingnews.com/?p=19217 Utility Warehouse, which is owned by Telecom Plus (TEP), operates in the essential home services market in the United Kingdom. As the only multiservice utility provider in the country to offer customers energy, broadband, mobile and insurance, Utility Warehouse serves a growing customer base of more than 800,000 households.

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Utility Warehouse, which is owned by Telecom Plus (TEP), operates in the essential home services market in the United Kingdom. As the only multiservice utility provider in the country to offer customers energy, broadband, mobile and insurance, Utility Warehouse serves a growing customer base of more than 800,000 households.

Andrew Lindsay, Utility Warehouse Co-CEO

This growth has resulted in Utility Warehouse being honored as a DSN Bravo International Growth Award winner for the service sector. This is awarded to the international direct selling company with the highest revenue growth year-over-year in both product and service categories.

Bundling services is Utility Warehouse’s key differentiator and allows customers to save time and money by collating many services into one single monthly bill, removing the hassle of multiple accounts, passwords and interactions with providers.

This wide-reaching impact is a sharp contrast from the company’s humble beginnings. Founded in 1996 as Telecom Plus, the company originally operated from a pub in Henley-on-Thames just outside London. In 1997, it launched its flagship product, the Smart Box, which plugged into phone sockets and routed calls to networks at a cheaper rate. In 2002, the company founded Utility Warehouse to also cover its energy, broadband and telephone services.

The company continued to expand in popularity and growth and was soon listed on the London Stock Exchange and became a constituent of the FTSE 250 Index.

Record Year of Growth

In the financial year 2023, customer numbers increased by 157,000 to 887,000 and service numbers by 533,000 to 2.8 million. This growth was achieved organically and is a noteworthy accomplishment in and of itself. But this advancement is all the more astonishing, considering this growth happened in only one country. Today, the company ranks 10th on the DSN Global 100 list.

Expanding Savings and Reducing Impact

The company’s philanthropic efforts are led by the UW Foundation, which plants a tree on behalf of every customer who signs up to take advantage of all the company’s service offerings. So far, the company has planted more than 117,500 trees, a feat the company describes in British terms as the equivalent area of 73 Wembley Stadium pitches and is an investment over time that has helped absorb more than 32,000 tons of carbon dioxide.

This philanthropic focus has also led the company to match all money raised for disadvantaged communities close to its offices in London, Bolton and Bournemouth, as well as offer a Warm Home Discount to vulnerable customers and sign language services for the hearing impaired.

Utility Warehouse has also expanded its savings opportunities for customers with the UW Cashback Card, which offers customers up to 10 percent cashback when they use the card through the program’s participating retailers and one percent on all other expenditures when they subscribe to all their services through UW. Cashback earned is then applied as credit to the customer’s UW bill. More than 300,000 cardholders have already signed up to save through this program.

“We live in a world where the nine-to-five job is no longer the norm and more people are looking for ways to top up their salary; find more flexible ways of working; and beat the cost-of-living crisis,” said Andrew Lindsay, Utility Warehouse Co-CEO. “Up and down the UK, more and more people are turning to side hustles and second jobs to make ends meet, learn new skills and pursue their passions. At Utility Warehouse, we have long believed in the power of entrepreneurship and helping people get on in life. More than 25 years ago, we launched our unique word-of-mouth partner model and since then, it has enabled tens of thousands of people to start their own business and earn a second income around their main job, other commitments or the school run.”

DSN congratulates Utility Warehouse on its phenomenal year and Bravo International Growth award.


From the June 2023 issue of Direct Selling News magazine.

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Telecom Plus Sees 51.5% Revenue Jump   https://www.directsellingnews.com/2022/11/22/telecom-plus-sees-51-5-revenue-jump/?utm_source=rss&utm_medium=rss&utm_campaign=telecom-plus-sees-51-5-revenue-jump Tue, 22 Nov 2022 16:35:11 +0000 https://www.directsellingnews.com/?p=17703 Telecom Plus PLC released its half-year results for the period ending September 30, 2022, reporting a 51.5% increase to $668 million, up from $441 million during the same period of 2021.

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Telecom Plus PLC released its half-year results for the period ending September 30, 2022, reporting a 51.5% increase to $668 million, up from $441 million during the same period of 2021. Adjusted profit before tax was up 22.5% to $38.1 million. The company also experienced record growth, with an annualized customer growth rate of almost 24%. 

Net customer growth remains at record levels for the company and partner recruitment continues to increase, which the company attributes to a cost-of-living crisis.  

“As the pressures on household budgets mount, we continue to offer UK families what they want: the lowest priced energy on the market, savings on their mobile, broadband and insurance bills, cashback on their daily spend, and additional earnings for recommending UW to their friends and families,” said Andrew Lindsay, Telecom Plus Co-CEO. “The business is growing faster than ever, at an annualized rate of almost 24%. With inflationary pressures showing no signs of easing, we expect demand for what we offer to remain high, supporting our progress towards our target of welcoming an additional one million customers in the next four to five years.” 

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Telecom Plus Profit Growth Exceeds Expectations  https://www.directsellingnews.com/2022/10/07/telecom-plus-profit-growth-exceeds-expectations/?utm_source=rss&utm_medium=rss&utm_campaign=telecom-plus-profit-growth-exceeds-expectations Fri, 07 Oct 2022 15:07:00 +0000 https://www.directsellingnews.com/?p=17335 Telecom Plus PLC announced an increase to its full-year profit expectations after a surge in customer growth. The company said a “record number” of UK households had joined, driving financial results and organic accelerated growth for the company overall.

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Telecom Plus PLC announced an increase to its full-year profit expectations after a surge in customer growth. The company said a “record number” of UK households had joined, driving financial results and organic accelerated growth for the company overall.  

Net customer additions represented an annualized growth rate of 24% in the first half of the year. This expansion is consistent with the company’s target of adding one million additional customers over the next four to five years. 

“Our unique multi-service proposition enables us to offer households savings on their energy bill of up to £125 a year below the new energy price guarantee, sustainably and profitably underpinning our long-term strong competitive position,” said Andrew Lindsay and Stuart Burnett, Telecom Plus Co-CEOs, in a joint statement. “In addition, we continue to offer outstanding value to customers taking our other core services: broadband, mobile and insurance, plus our market-leading cashback card. At a time when cost of living pressures continue to rise, we are uniquely positioned to offer households what they need now more than ever: savings on their essential bills and an extra income from recommending these savings to their friends and family.” 

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Telecom Plus Reports Record Results and Sustainable Growth Expectations  https://www.directsellingnews.com/2022/06/21/telecom-plus-reports-record-results-and-sustainable-growth-expectations/?utm_source=rss&utm_medium=rss&utm_campaign=telecom-plus-reports-record-results-and-sustainable-growth-expectations Tue, 21 Jun 2022 18:24:03 +0000 https://www.directsellingnews.com/?p=16695 Telecom Plus PLC announced record results for the year ending March 21, 2022, with a 12.3% increase in revenue and 10.3% increase in adjusted pre-tax profit. Adjusted EPS was also up 10.1%. 

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Telecom Plus PLC announced record results for the year ending March 21, 2022, with a 12.3% increase in revenue and 10.3% increase in adjusted pre-tax profit. Adjusted EPS was also up 10.1%. 

Total customers increased by 10.8% to 729,000, a number equal to the previous five years of growth combined, with notable improvements in customer retention. 

“The business is performing extremely well, delivering record results ahead of expectations,” said Telecom Plus Co-CEO Andrew Lindsay. “Demand for the long-term savings we offer remains high, and underlying organic customer growth is continuing at an annualized rate of around 20% in the new financial year.” 

The outlook for customer volume continues to be in line with the guidance of 20% net growth for the full year 2023. With these results, the company’s leadership has cast a vision of signing an additional one million customers in the near future.  

“Our partners are growing more and more confident in the value we offer, and as a result are recommending UW to their friends and families in increasing volumes,” said Telecom Plus Co-CEO Stuart Burnett. “By doing so, they are earning meaningful additional incomes that are helping them meet the growing pressures on their personal finances. Working together, we have already seen a return to sustainable 20% growth, and we look forward to signing up a million additional customers over the next four to five years.” 

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Building Strategy for Future Growth https://www.directsellingnews.com/2017/06/01/building-strategy-for-future-growth/?utm_source=rss&utm_medium=rss&utm_campaign=building-strategy-for-future-growth https://www.directsellingnews.com/2017/06/01/building-strategy-for-future-growth/#respond Thu, 01 Jun 2017 19:33:44 +0000 https://dsnnewprd.wpengine.com/building-strategy-for-future-growth/ IN THIS ISSUE: 2017 DSN Global 100 List DSN Makes its Global 100 Celebration an Event to Remember Frequently Asked Questions about the Global 100 Ranking DSN BRAVO AWARDS: Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change Growth: Jeunesse: Forging an Uncharted Path to […]

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IN THIS ISSUE:

2017 DSN Global 100 List
DSN Makes its Global 100 Celebration an Event to Remember
Frequently Asked Questions about the Global 100 Ranking

DSN BRAVO AWARDS:

Leadership: It Works! CEO Mark Pentecost: On the Road to Legendary
Leadership: Isagenix’s Jim & Kathy Coover: Agents of Change
Growth: Jeunesse: Forging an Uncharted Path to Billion-Dollar Growth


Whether you’ve been around the block, like Amway, or you’re relatively new in town, like Total Life Changes (TLC), direct selling was a good business to be in for 2016.

Even with such pressures as a softening in China’s economy—the largest market for some of the channel’s biggest players—and increased regulatory scrutiny, about half of this year’s Global 100 companies reported higher revenue than they reported a year before. They launched products that are winning with consumers, invested heavily in technology and designed incentives that are driving distributor success. These targeted growth strategies, along with an even sharper focus on best practices, are positioning direct sellers to continue to expand footprints, broaden retail sales and create opportunities for entrepreneurs.

Controlled Growth

The Global 100 had aggregate revenue of more than $82 billion in 2016, with 10 list-makers growing by $100 million or more and 22 reporting annual revenue of $1 billion or more each.

Not everyone saw huge leaps in revenue or crossed a major financial milestone. Some companies’ sales were down—although most of those didn’t decrease by much, and analysts say reports of lower revenue among global companies can be misleading because of how the strong dollar affects exchange rates.

Other direct sellers’ numbers held steady, and many that grew did so modestly, according to Euromonitor, which analyzes the global direct selling channel. “Despite aggressive competition from internet retailing, direct selling posted moderate growth in 2016,” Euromonitor says in a recent report. “The main reason behind its resilient performance is that some consumers still prefer to try products before purchasing.”


We are very optimistic about our strategies to recover and very optimistic for the China direct selling space.
– Bob Bass, Lead Strategic Insights Analyst, Amway


Moderation is a good thing, says Bob Bass, Lead Strategic Insights Analyst for Amway, which held tight to its No. 1 spot even though revenue dipped slightly from $9.5 billion to $8.8 billion. Bass says he could largely attribute that decline to the changing Chinese economy—which we’ll discuss later in the story—but he believes the outlook is bright for Amway and other direct sellers, especially those that have a large overseas presence. “We are very optimistic about our strategies to recover and very optimistic for the China direct selling space,” Bass says.

Launch Time

New products were rolling out from every corner of the direct selling market in 2016. And the anecdotal evidence suggests that companies are focusing on niches within their niches, creating highly targeted versions of existing products and pursuing very specific customers.

During its 2016 International Convention, USANA Health Sciences—No. 20 on the Global 100, having hit the $1 billion mark—unveiled its InCelligence technology. Found in several USANA products, such as CellSentials, the company created InCelligence to harness the body’s ability to nourish, protect and renew itself, and it seems to be performing well. Last year, the supplements line that includes the new technology accounted for 20 percent of USANA’s overall product revenue, according to the company’s annual report.

The consumer drive to drop pounds also fueled new supplement technology. As part of the ongoing development of its 4Life Transfer Factor line, 4Life introduced 4LifeTransform Burn at the company’s annual convention in October. 4LifeTransfer Burn is meant to accelerate metabolism and double the body’s ability to burn fat, executives say, adding that they believe it will keep the company on a hot streak. “Burn will, I think, give us the momentum we need to make 2017 another record-breaking year,” Chief Marketing Officer Danny Lee told DSN last year.

Mannatech, which landed at No. 73 on the list with $180 million in revenue, also introduced a fat-loss system last year. While it declined to say what percentage of its revenue came from TruHealth sales, Director of Communications Mike Crouch said last fall that more than 20 percent of new associates had joined Mannatech by purchasing TruHealth.

At a different point on the broad products spectrum, Princess House—which grew by $25 million to $195 million in revenue and ranked No. 72 on the list—has launched cookware for younger families in its largely Hispanic customer base. Traditional Princess House product users often are cooking for large family gatherings, says Vice President of Operations Russ Whittle. “One of our best sellers is a 50-quart stockpot—the kind you usually see only at Chipotle or Qdoba.” The new ware includes smaller skillets and griddles for the family that’s just starting out. The company also has focused on expanding into other categories, such as food storage containers, one of which just won a Good Housekeeping Seal of approval and the Direct Selling Association Ethos Award for product innovation, Whittle said.

The younger consumer is the sweet spot for TLC’s newest product as well, an instant version of the company’s detox tea. Busy millennials appreciate this new stick pack, says Chief Operating Officer John Licari, because they can just pour the tea into a 12- or 20-ounce bottle of water and shake the bottle to blend the drink. No tea bag to steep.


In the United States, challenging people with the opportunity to lose weight through friendly competition has proven really successful for us in getting them to use and share the products.
– Calvin Jolley, Vice President of Communication, 4Life Research


Launching in new geographic markets also gives these direct selling companies potential for a substantial return. Even the smaller companies such as TLC—which is up six spots on the list to No. 94, with $88 million in revenue—are interested in international expansion. They opened offices in Japan, Taiwan and the Philippines in 2016. Additionally, in December, Mannatech announced that it had launched a cross-border e-commerce model in China. Princess House increased its penetration here at home into the Southeast, the Pacific Northwest and Northern California. Whittle says international expansion is a possibility, but “we realize we have a lot more opportunity here in the United States, and that’s where our current focus is.”

High-Tech Low-Tech Balance

The technology that supports the sales of all these new products and growing salesforces got a boost last year, as well. On-demand, easily accessible training is no longer optional for companies who want to gain or keep a competetive advantage; it’s a critical part of any successful consultant-support program. New software at TLC guides incoming distributors through mandatory online training videos to make sure they’re aware of crucial compliance issues, says CEO Jack Fallon. Tech-savvy USANA also sees continuing value in investing in IT, having ramped up its investment in its technology infrastructure over the last year, says CEO Kevin Guest. “Technology is one of our greatest opportunity areas. The world today is in everyone’s pocket on their phones.”

USANA focused in particular on building its WeChat presence in China, the platform through which nearly all of China’s e-commerce and social media traffic flow, according to Bloomberg.com. On average, Chinese internet users spend more than one-third of their online time in WeChat. “It’s literally how many people in China function from a mobile perspective,” Guest says.

While technology continues to aid and transform direct selling—making expansion and growth exponentially easier and faster—company executives are still talking about the importance of maintaining face-to-face connections in an increasingly virtual business. Simply put, technology can never replace the personal nature of the consultant-to-customer relationships and its benefits.

“A lot of direct selling companies who want a high-tech approach also want to keep the high-touch activities so they don’t lose that personal relationship selling model that is traditional,” says Amway’s Bass about the online-to-offline (OTO) trend. “Buyers can be much more loyal to the direct sellers that offer social media and OTO opportunities.”

Incentive Programs

Product innovation and a blend of high-tech and traditional sales methods are fundamental to the modern direct seller’s success. So are strong leaders in the field. Without them, a company cannot be competitive.

And while most successful entrepreneurs are self-driven, they also are highly motivated by incentives. So direct selling companies continue to create programs that increase the engagement and performance of their field teams as well as draw new retail customers.

4Life has created a weight loss contest in which participants use a pack of products for a month and share before-and-after pictures to illustrate their transformations. “In the United States, challenging people with the opportunity to lose weight through friendly competition has proven really successful for us in getting them to use and share the products,” says Calvin Jolley, VP of Communications, indicating that most of the company’s recent growth coincides with the positive effects of the challenge.

USANA has had success with targeted promotions, as well, Guest says. Short-term regional and marketing-specific incentives like travel rewards for the Filipino salesforce, for example, have gained a lot of traction. “Most people in the Philippines don’t have the opportunity to travel,” he says. “If they have the ability, through their productivity and their growth, to see parts of the world they’ve never had the opportunity to see, that’s a great incentive.”

Sometimes it’s about simple math. Customers are often motivated to hold parties for host rewards of products they desire, but for which they don’t want to pay full price. At Princess House, the incentive emphasis has been on giving a major product discount to a party host who hits a certain sales target. “If you can get a $500 retail item for $99 for getting a $750 show, you’re going to work a little harder,” Whittle says.

China Whirl

As analysts have said, the steady but less rapid growth—and for some, the slight decline—among global direct sellers is due primarily to shifts in the Chinese economy and to the strong dollar in general.

Trends to Watch in China

Amway has seen it all in China. The company was there when the direct selling channel got its foot in the door. It was there when the government shut the channel down for a period in the late 1990s because of poor actors creating pyramid schemes. And Amway’s there now, as the channel is coming out of a period of rapid growth. While the pace is slowing and the government appears to be tightening the reins a bit, Amway Strategic Insights Analyst Bob Bass believes there are promising trends that will create new opportunities for direct sellers to succeed.

  • Online to offline. While not unique to China, this trend of balancing virtual business with in-person communication and selling is gaining momentum in the Chinese market. Companies that embrace the blend are likely to be more successful.


  • Traditional Chinese medicine. Nutritional supplement companies are leveraging the country’s unique medicinal remedies as they develop new products. This approach is resonating loudly, not just with Chinese consumers but with customers beyond the country’s borders.


  • Leading with product. Companies that focus on the three R’s—retailing, retention and recruiting—will be in stronger positions as the Chinese economy makes its transition. Says Bass, “Sometimes direct selling competitors get ahead of themselves and their three R’s are only ‘recruit, recruit, recruit.’ ” However, those companies that place high priority on leading with product (retailling) and retention strategies are much better positioned to experience long-term sustainable growth.

Let’s start with the dollar exchange rate, which affects how U.S. companies record revenue and profit generated in other countries. On average in 2016, the dollar was up against most currencies, except the euro and the yen. In China, the exchange rate was 6.91 yuan for every dollar; in India, the average rate was 70 rupees for every dollar; and in Japan, US$1 would exchange for 113 yen. For U.S.-based companies that do a majority of their business overseas, their earnings can look less robust when the dollar is strong compared with the currency in a particular country. The money those companies make in that foreign currency doesn’t translate to as many dollars as it would if its local currency exchange rate were equal to or stronger than the dollar.

For example, Nu Skin’s local currency growth rate for sales in China in 2016 was 14 percent, says Doug Lane, a securities analyst who specializes in direct selling companies. But the skin products company reported dollar growth in sales of only 8 percent because of the depreciation of the yuan against the dollar. Simply put, it’s important to consider the exchange rates when evaluating the strength of a U.S. company that conducts a significant amount of commerce in countries with weaker currencies, Lane says. Failing to do so can create a false negative impression of a company’s overall performance.

The overall Chinese economy has also had an effect on a number of companies who do business there. Bass says that direct sellers are going to have to adjust to a new reality in China. The channel’s growth this year in China could be in the -5 percent to +5 percent range. As of press time, no one really knows yet. The only sure thing is that this critical market for many direct sellers is changing—partly because the Chinese government has slowed the rate at which it grants licenses to direct sellers. Bass doesn’t expect the government to double the number of licenses over the next two years, as it did from 2014 to 2016, when the number went from 40 to 80. The other change is coming from a declining gross domestic product, he says. According to the International Monetary Fund, China’s GDP was about 6.7 percent at the end of 2016, down from the 7.5 percent range in 2013. Bass says some projections have the GDP falling to as low as 5.9 percent by 2020. “That is a drastic decline from an economy that still has a large and rapidly growing middle class.”

These pullbacks along with China’s notoriously tough rules for network marketers aren’t causing panic; they’re just reminding direct sales executives that they must continue to be diligent about their Chinese operations.


It’s however much effort you want to put into it. If you want your business as a passive income, you’ll earn less [than if you are actively working it].
– Russ Whittle, Vice President of Operations, Princess House


Nu Skin notes in its 2016 annual report that it’s still feeling the effects of a crackdown on its practices in China in 2014. “Our business in mainland China still has not fully recovered from these events,” the report states. “The regulatory environment in mainland China is particularly complex and continues to evolve.”

As the Chinese economy loses some steam, the government is turning inward, analysts say, encouraging its citizens to buy indigenous products. Lane says this “Buy China” message likely will affect mass marketers more than it will hurt direct sellers. “A lot of direct sellers tend to offer premium products,” he says. “When you get into the prestige markets, that consumer is looking for a U.S. product or a Japanese product, an upscale brand with the cachet of originating from a sophisticated overseas source. There’s a huge opportunity with an emerging middle class with disposable income going up, a market that’s a natural fit for direct selling culturally.”

Frank Jiang, who leads Amway’s global China sales team, agrees that direct sellers should stay positive about their position in and prospects for China and should commit to “continuing their best practices of corporate citizenship.” Direct sellers also need to keep an eye out for competitors who may not share that commitment, he continues. “There’s always the potential for newly licensed companies to want to accelerate their growth trajectory and that can often lead to bad practices. We’re all in this together, and we need to watch for bad actors.”

USANA’s Guest understands that while the direct selling channel in China has grown dramatically, it’s still “a new frontier” in many ways, and companies need to be diligent. “We want to be a good corporate citizen in China,” he says. “We want to understand what the regulatory environment is and what they’re trying to accomplish, and how we can support the future of direct sales in China.”


There’s a huge opportunity [in China] with an emerging middle class with disposable income going up, a market that’s a natural fit for direct selling culturally.
– Doug Lane, Securities Analyst


Guest says that while USANA certainly “feels pressure from an exchange rate perspective,” the company believes its future in China is clear because of how strongly its health-supporting products are resonating with a population increasingly in tune with the need to combat environmental stressors.

Top Companies Per Region

Asia/Asia Pacific 40
1. Infinitus, Malaysia $3.41B
2. Perfect, China $3.06B
3. Quanjian, China $2.89B
4. JoyMain, China $1.49B
5. New Era, China $1.16B

Europe/Africa 9
1. Avon, UK $5.70B
2. Vorwerk, Germany $4.2B
3. Oriflame, Switzerland $1.40B
4. Telecom Plus, UK $1.12B
5. PM International, Germany $460M

North America 46
1. Amway, USA $8.80B
2. Herbalife, USA $4.50B
3. Mary Kay, USA $3.50B
4. Tupperware, USA $2.210B
5. Nu Skin, USA $2.208B
6. Primerica, USA $1.52B
7. Jeunesse, USA $1.41B
8. Ambit Energy, USA $1.20B
9. USANA, USA $1.01B
10. Young Living, USA $1.00B

South America 5
1. Natura, Brazil $2.26B
2. Belcorp, Peru $1.09B
3. Yanbal, Peru $924.0M
4. Marketing Personal, Colombia $153M
5. FuXion Biotech, Peru $116M

Practices Make Perfect

Compliance issues in direct selling are on the front burner in the United States, too. In 2016, two high-profile Federal Trade Commission settlements—with Vemma and Herbalife—heightened companies’ awareness of the need to self-regulate to make sure potential income claims are honest and transparent, to have a robust retail customer base, and to ensure that the majority of distributors’ volume comes from customers outside the compensation plan.Guest says direct selling tends to attract high-achievers, and sometimes the way they describe their success can inadvertently cause problems. “You see people who are not trying to be deceptive; they’re honestly not trying to say anything other than, ‘This is what I did!’ ” But if a particular distributor’s success is not the norm, a potential salesperson may misunderstand unless the company clarifies what the average person can expect.

He adds, “When someone enrolls in USANA we talk about proper income claims and about how to run their personal business within the constraints of the law.” At Princess House, the company’s “Success Start” program helps new consultants understand how much work it will take to achieve a particular level of success. Clarity on this issue is paramount in today’s regulatory climate. When a company strengthens the new person’s grasp of the work involved, both parties benefit. Whittle says. “If [a consultant] wants her business as a passive income, she’ll earn less” than if she is actively working it.

As we round the mid-year point of 2017, the outlook for this channel is promising, and we anticipate another year of success for direct selling worldwide. Our channel remains the single best entrepreneurial opportunity for anyone, from any walk of life, to improve their circumstances. We look forward to reporting the 2018 Global 100 List!

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Topping the Charts https://www.directsellingnews.com/2013/06/01/topping-the-charts-2/?utm_source=rss&utm_medium=rss&utm_campaign=topping-the-charts-2 https://www.directsellingnews.com/2013/06/01/topping-the-charts-2/#respond Sat, 01 Jun 2013 10:03:00 +0000 https://dsnnewprd.wpengine.com/topping-the-charts/ Which companies had the greatest growth this year? Who was the top Asian company? How about the largest in Health & Wellness?

The post Topping the Charts first appeared on Direct Selling News.

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Click here to order the June 2013 issue in which this article appeared.


IN THIS ISSUE:

Cover Story10 Things to KnowThe List
Topping the Charts ProfilesCelebration

BRAVO AWARDS:
LeadershipGrowthMomentum


GREATEST PERCENT OF INCREASE AMONG BILLION DOLLAR COMPANIES

    1. Nu Skin: 29.4%
    2. Belcorp: 18.8%
    3. Herbalife: 17.1%

GREATEST GROWTH PERCENTAGE

(Ranked in 2011)

      1. ViSalus: 170.1%
      2. LifeVantage: 167.1%
      3. Jeunesse Global: 93.8%
      4. AdvoCare: 84.8%
      5. Organo Gold: 80.9%
      6. Faberlic: 65.0%
      7. WorldVentures: 57.1%
      8. Thirty-One Gifts: 49.0%
      9. WIV Wein: 47.7%
      10. Princess House: 45.1%

GREATEST DOLLAR GROWTH

(Ranked in 2011)

      1. Herbalife: $600M
      2. Nu Skin: $500M
      3. Amway: $400M
      4. Natura: $400M
      5. ViSalus: $393M
      6. Vorwerk: $300M
      7. Belcorp: $300M
      8. Ambit Energy: $266M
      9. Thirty-One Gifts: $236M
      10. Mary Kay: $200M

PRODUCTS OF THE TOP 10

      1. Amway – Cosmetics, Personal Care, Food & Beverage, Home Care, Wellness
      2. Avon – Beauty, Fashion Jewelry, Apparel, Home Care
      3. Herbalife – Cosmetics, Personal Care, Wellness
      4. Vorwerk – Cosmetics, Home Appliances, Home Care
      5. Natura – Cosmetics, Personal Care
      6. Mary Kay – Cosmetics, Personal Care
      7. Tupperware – Storage & Serving, Beauty, Personal Care
      8. Nu Skin – Cosmetics, Personal Care, Wellness
      9. Oriflame – Cosmetics, Personal Care
      10. Belcorp – Cosmetics, Personal Care

YEARS IN BUSINESS FOR TOP 10

      1. Amway: 54
      2. Avon: 127
      3. Herbalife: 33
      4. Vorwerk: 130
      5. Natura: 44
      6. Mary Kay: 50
      7. Tupperware: 67
      8. Nu Skin: 29
      9. Oriflame: 46
      10. Belcorp: 45

Total: 625
Average Age: 62.5


TOP 10 AMERICAN COMPANIES

      1. Amway
      2. Avon
      3. Herbalife
      4. Mary Kay
      5. Tupperware
      6. Nu Skin
      7. Primerica
      8. Ambit Energy
      9. Ignite
      10. Thirty-One Gifts

TOP AMERICAN COMPANIES

(Operating in U.S. Market Only)

      1. Ambit Energy
      2. Ignite
      3. Team National
      4. AdvoCare
      5. Take Shape for Life
      6. Family Heritage Life
      7. Viridian Energy
      8. North American Power
      9. Princess House
      10. Rodan+Fields

TOP 10 EUROPEAN COMPANIES

      1. Vorwerk: Germany
      2. Oriflame: Luxembourg
      3. Telecom Plus: UK
      4. WIV Wein: Germany
      5. Faberlic: Russia
      6. LR Health & Beauty: Germany
      7. PM-International: Germany
      8. Ann Summers: UK
      9. K par K: France
      10. Huis Clos: France

TOP 10 ASIAN COMPANIES

      1. Pola: Japan
      2. Miki Corp.: Japan
      3. AmorePacific: South Korea
      4. For Days: Japan
      5. KK Assuran: Japan
      6. LG Household & Health Care: South Korea
      7. Noevir: Japan
      8. Menard Japan Cosmetics: Japan
      9. Eureka Forbes: India
      10. Longrich: China

TOP SOUTH AMERICAN COMPANIES

      1. Natura: Brazil
      2. Belcorp: Peru
      3. Yanbal: Peru
      4. Hermes: Brazil

TOP 10 PUBLIC COMPANIES

      1. Avon
      2. Herbalife
      3. Natura
      4. Tupperware
      5. Nu Skin
      6. Oriflame
      7. Primerica
      8. Pola
      9. Telecom Plus
      10. USANA

TOP 10 PRIVATELY HELD COMPANIES

      1. Amway
      2. Vorwerk
      3. Mary Kay
      4. Belcorp
      5. Miki Corp.
      6. Ambit Energy
      7. Ignite
      8. Yanbal International
      9. Thirty-One Gifts
      10. Shaklee Corp.

TOP PARTY PLAN COMPANIES

      1. Mary Kay
      2. Tupperware
      3. Belcorp
      4. Thirty-One Gifts
      5. Scentsy

TOP BEAUTY/PERSONAL-CARE PRODUCTS

      1. Avon
      2. Amway
      3. Natura
      4. Mary Kay
      5. Nu Skin

LARGEST DIRECT SELLING COMPANIES BY CATEGORY

      1. Jewelry/Accessories: Avon
      2. Health & Wellness: Herbalife
      3. Beauty/Personal Care: Avon
      4. Financial Services: Primerica
      5. Energy Services: Ambit Energy
      6. Telecommunications: Telecom Plus

COMPANIES 10 YEARS OLD OR LESS

No. 14 Ambit Energy: 7 Years
No. 16 Ignite: 9 Years
No. 18 Thirty-One Gifts: 10 Years
No. 21 ViSalus: 8 Years
No. 23 Scentsy: 9 Years
No. 61 LifeVantage: 10 Years
No. 63 Viridian Energy: 4 Years
No. 66 Organo Gold: 5 Years
No. 68 Enagic: 10 Years
No. 68 North American Power: 4 Years
No. 75 WorldVentures: 8 Years
No. 78 Jeunesse Global: 4 Years
No. 81 Vemma: 9 Years
No. 82 Zija International: 8 Years
No. 83 Rodan+Fields: 6 Years
No. 85 Momentis: 3 Years
No. 86 Nerium International: 2 Years


SALES METHOD OF THE TOP 10

      1. Amway: Person-to-person
      2. Avon: Person-to-person
      3. Herbalife: Person-to-person
      4. Vorwerk: Person-to-person and party plan
      5. Natura: Person-to-person
      6. Mary Kay: Person-to-person and party plan
      7. Tupperware: Person-to-person and party plan
      8. Nu Skin: Person-to-person
      9. Oriflame: Person-to-person
      10. Belcorp: Person-to-person and party plan

 

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