Omnilife - Direct Selling News https://www.directsellingnews.com The News You Need. The Name You Trust. Wed, 08 Nov 2023 21:53:16 +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 Omnilife - Direct Selling News https://www.directsellingnews.com 32 32 OMNILIFE: A New Generation of Leaders https://www.directsellingnews.com/2023/11/08/omnilife-a-new-generation-of-leaders/?utm_source=rss&utm_medium=rss&utm_campaign=omnilife-a-new-generation-of-leaders Wed, 08 Nov 2023 21:31:39 +0000 https://www.directsellingnews.com/?p=20194 Over thirty years ago, Jorge Vergara and Maricruz Zatarain were introduced to a selling concept that would not only profoundly change their family’s life but the lives of millions. As they built their first network marketing business and learned how impactful the model could be for their family and friends, they dreamed of launching their own direct selling company. That dream became reality in 1991 with the launch of OMNILIFE de Mexico.

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Over thirty years ago, Jorge Vergara and Maricruz Zatarain were introduced to a selling concept that would not only profoundly change their family’s life but the lives of millions. As they built their first network marketing business and learned how impactful the model could be for their family and friends, they dreamed of launching their own direct selling company. That dream became reality in 1991 with the launch of OMNILIFE de Mexico.

Over nearly three decades, Jorge grew OMNILIFE into an international powerhouse, expanding from Mexico to other countries throughout Latin America, North America, the Caribbean and Europe. As his company grew, Jorge’s children grew right alongside it. Son Amaury Vergara Zatarain and daughters Kenya Vergara Zatarain, Yelena Povaguina and Uma Vergara were frequent guests on stage of OMNILIFE’s concert-like events, joining their father; learning from his legacy; and growing as leaders themselves.

For many years, Jorge and his family were the faces of OMNILIFE, inspiring distributors around the world to follow their example and build dreams of their own that could last for generations.

Following Jorge’s death in 2019, the broader OMNILIFE family of distributors and employees mourned alongside with Jorge’s children—they also wondered how the company would transition into a new generation of leadership. Amaury was appointed Chairman of The Board and General Director of The Omnilife Group; Kenya took on the role of Director of Omnilife-Seytú Global Marketing; and Yelena was appointed Executive Director of Financial Control. While they had grown up in OMNILIFE and had learned many lessons from their father, the siblings were only in their twenties—very young compared to distributors who had been building their businesses for decades.

Today, under the council´s leadership—Amaury, Kenya, Yelena and Diego Calderón—OMNILIFE operates in 21 countries; supports more than seven million distributors; and serves other millions of customers worldwide. What began with one foundational product, a multivitamin drink called OmniPlus (known today in the US as OML Plus), has expanded to a product line of different ready-to-drink and powered nutrition products, as well as a beauty and personal care line.

“We were born as a nutritional supplement company based on multi-development and a lifestyle full of health and economic stability,” Amaury shared. “Our philosophy of being People Taking Care of People is reflected in the abundance in health and economy of our OMNILIFE distributors with whom we share the mission of being in the cupboards of every family to share wellness and abundance around the world.”

Passion and Possibilities

As he built and expanded OMNILIFE from Mexico to countries around the world, Jorge was always dreaming of new possibilities—from new products to new business ventures to new opportunities for the entrepreneurs he inspired. The OMNILIFE Group is comprised of over thirty companies, including Club Deportivo Guadalajara, the most popular football club based in Guadalajara nicknamed Chivas.

“Innovation is one of our most important pillars,” Kenya explained. “We’ve implemented cutting-edge technology along with permanent research work, merging the latest ingredients with the experience we have for over 32 years. We understand that our products are a tool to transform the health and life of each distributor, so it will always be our goal to invest in offering the best products since the most important thing for us is that each person sees the results and benefits as soon as they consume them.”

Jorge’s legacy of evolution is alive and well, as Amaury, Kenya and the next generation of OMNILIFE leaders are also committed to growth and change—not only for distributors, but for the company’s product line as well.

“OMNILIFE’s main focus is multi-development, a system in which lifestyle is transformed through personal growth to achieve success and abundance in an integral scope: health, professional and economic,” Amaury explained. “This is because OMNILIFE was projected from the beginning as a company that would not only help with health but also to develop in all aspects of life.”

Legacy and Longevity

After years of transition, from new generational leadership to navigating a global pandemic, the OMNILIFE family is excited about this new season of growth and breakthrough. More customers are trying OMNILIFE products than ever before, often through a distribution method that has become the standard in Latin America but feels novel in the United States: OMNILIFE stores (distribution centers).

With the experiential interaction of an Apple store but the convenience of a grocery store, customers can get a feel for OMNILIFE products in person and then purchase either by becoming a distributor or through a sale linked to one of the top distributors in that area. With stores throughout Latin America and 19 stores and counting in the United States, OMNILIFE has found great success through this model. In fact, 50 percent of the company’s US sales are through OMNILIFE stores. In Mexico, that figure is over 90 percent.

In the States, these stores aren’t the only new development for OMNILIFE. In March 2023, the company broke ground on a new corporate office, warehouse and manufacturing plant located in Allen, Texas and expects to open its doors in Q2 2024.

“We have two manufacturing plants,” Amaury shared. “We have one in Guadalajara (one of the largest in the world in food supplements), and another in Cali, Colombia, to supply South America. Now we are building another one in the United States to supply the entire North American market. Likewise, in Barcelona, Spain, we have commercial allies, and we foresee a lot of growth in the European community.”

As OMNILIFE expands to more households throughout the world, this new generation of leaders honors Jorge’s vision of improving people’s lives through both lifestyle and opportunity, but they’re also ushering in a new chapter of the company’s story.

“We’re excited about our philosophy, our values and the future we envision,” Amaury shared. “We must remember where we come from to know where we are going, and we want to continue transforming lives with an even more avant-garde vision. For 32 years, we have distinguished ourselves as a strong company that offers a solid career plan, innovative products and the multi-development to improve in all areas of life. The most important thing for us is to be the vehicle for anyone with the burning desire to transform their reality.”

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Hispanic Market is booming https://www.directsellingnews.com/2023/11/01/hispanic-market-is-booming/?utm_source=rss&utm_medium=rss&utm_campaign=hispanic-market-is-booming Wed, 01 Nov 2023 07:40:00 +0000 https://www.directsellingnews.com/?p=20133 In Mexico alone, the direct selling market is projected to surge to $19.48 billion by 2028. That staggering number doesn’t include the more than 60 million Latinos living and working within the US, or the fact that direct selling is already a staple for the Latin American population, where a quarter of beauty and personal care sales take place through a direct selling relationship (compared to eight percent globally).

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Are You Keeping Pace?

Building a smart international expansion strategy means looking for momentum-building markets with untapped growth potential. In 2024, that indisputably includes the Hispanic and Latino markets.

In Mexico alone, the direct selling market is projected to surge to $19.48 billion by 2028. That staggering number doesn’t include the more than 60 million Latinos living and working within the US, or the fact that direct selling is already a staple for the Latin American population, where a quarter of beauty and personal care sales take place through a direct selling relationship (compared to eight percent globally).

Happy latin women laughing and hugging each other outdoor in the city
Sabrina Bracher/shutterstock.com

“Latinos in the United States represent a larger consumption market than the entire economy of nations like Italy, Canada or Russia,” shared Judith Sanchez Lopez, PM-International General Manager, Latin America. “If Latinos living in the United States were an independent country, the US Latino GDP would be the fifth largest GDP in the world, larger than the GDPs of India, the United Kingdom or France.”

There are a number of direct selling companies who have already captivated the Hispanic and Latino markets and are thriving. There are two distinct scenarios at play here: US-based companies that are dominating in Hispanic markets and foreign-based companies doing the same.

DSN 2023 Bravo Growth Award winner Princess House successfully serves this corner of the US market. Other examples include 4Life, Hy Cite, Immunotec and relative newcomer ACTIVZ. These companies are also strong in other Spanish-speaking markets.

Betterware de Mexico and Omnilife are based in Mexico and making huge strides in that market and throughout the region.

It could be tempting to assume that the same strategies and approaches that work for US customers would be a fit for the Hispanic population living within the US, or even the neighboring Latin American populations, but that assumption is a sure-fire way to fail. Ignoring the unique communication styles of each individual market is not only ineffective, it’s disrespectful. There are cultural sensitivities that should be honored; product preferences that need to be prioritized; and local talent that deserve to be elevated to leadership.

“Companies that want to be successful need to stop making Latin American countries an extension of their current market,” said Mauricio Domenzain, Immunotec Chief Executive Officer. “By that, I mean you really need to commit to the market. We can’t simply send one manager to Latin America now and then wait to see if it’s going to work or not. It’s a full commitment, not just the addition of another flag on your wall or your website. You have to truly become part of that market to understand the cultural needs.”

Copy and Paste Isn’t a Strategy

What works in the United States doesn’t automatically translate to success on a global scale. That goes for products, but it’s also a good rule to live by when it comes to communication, marketing materials and events. For companies founded in the US or who predominantly operate within the US, expanding to include Spanish-speaking consumers is not as simple as hiring a translator or relying on Google Translate. These translations are often choppy, with no regard for local idioms or speaking rhythms.

Solving for this pain point has been a game changer for brands like 4Life, who overhauled their communication process to treat Spanish as its own first language rather than relying entirely on English. The company now enlists two separate content creator teams, one who is primarily English-speaking and one who is primarily Spanish-speaking, to design materials. The end result prevents poor translations that damage credibility.

“If you go to our convention, we are 80-85 percent Hispanic,” said Brian Gill, 4Life Chief Marketing Officer. “Five years ago, out of respect, we stopped translating English to Spanish. It’s not enough to have great translators. A Hispanic whose primary language is Spanish should be the one creating our materials. It’s about empowering the affiliate to share the brand, and a poor translation is not a credible connection they are proud to share.”

Homogenous, hand-me-down resources communicate the message that international markets are inferior, less valuable and unappreciated. Conversely, when companies allocate the resources and staff necessary to maintain and develop a culturally relevant, localized brand with tools that take local language, lifestyle and history into consideration, customers and distributors take note. A successful entry into Hispanic and Latino markets is one that allows the population to embrace entrepreneurial opportunity while preserving its own cultural DNA.

“Entering the Hispanic market was not secondary or an afterthought; it was our primary thought,” said David Brown, ACTIVZ Chief Executive Officer. “Our Spanish-speaking distributors are constantly amazed that they get new products and materials first and that they weren’t translated from English. Everyone responds well to attention and responsiveness, and that’s probably the secret to our success.”

Honor Culture Past and Present

Family is a core value for the Hispanic and Latin American markets, and consumers in these demographics typically have great reverence for their parents and their tightly-knit communities. The US ethos of independent, self-made success doesn’t land the same within these cultures, so even well-intentioned corporate leaders commissioned from the company’s US headquarters could get off on the wrong foot without realizing it.

“It’s not only the language, but it’s also the culture that you need to understand,” explained Domenzain. “You need to have people on the ground—people directly from those markets—who understand and can serve that market the correct way.”

Leaders also need to consider how each new generation brings their own energy and inspiration to the foundational values of the Hispanic and Latin American cultures. From a corporate standpoint, that means being willing to adjust the speed and style of work. Omnilife addressed this generational evolution by implementing a shift from graphic design to a focus on social media, leaving behind big format printing in favor of video and digital formats and encouraging all of its departments to embrace the Gen Z style of work, which is quick to adapt to change.

“We are integrating younger generations into our corporate team, and that has helped make us relevant,” said Eduardo Ros, Omnilife Marketing Manager. “Our communications and packaging have become younger. We have received testimonies from people in Ecuador and Peru who tell us that working with second- and third-generation distributors who are younger has helped them see how best to take advantage of this opportunity and approach the business differently.”

Recognize the Uniqueness of Each Market

Each country and community has its own unique traditions and habits, and the Latin American market is no exception. There is no one-size-fits-all approach that would respectfully reach this vast audience, and it’s important to remember that there are distinctions among the adjectives often used to describe this diverse group of cultures within and outside of the US. The word Hispanic describes Spanish speakers, including those living within the US and Spain, while Latinos is reserved for those living within Latin America, including Brazil, where Portuguese is the official national language.

“Hispanics in the US are not a monolith,” Sanchez Lopez said. “They are a combination of countries, cultures, slang, levels of acculturation and generations. You need to decide who you want to target, understand what sets them apart and then ask yourself if your company is communicating and interacting in a way that respects their cultural differences and strongest drivers.”

For companies with a broad footprint across countries with similar but distinct cultures, discovering what makes each market tick is critical to securing healthy, welcomed growth among distributors and potential customers. Hy Cite, for example, courts Latinos in eight different countries, including the US and Brazil. Efficiency is incredibly important, so the company harmonizes its content, but it also takes care to modify even the smallest details to communicate that each individual market matters.

“The way we present our products changes depending on the audience,” said Paulo Moledo, Hy Cite President and Chief Executive Officer. “Our recipes used on social media, for instance, feature arepas in Colombia and tacos in Mexico. We also pay attention to our call center services. We learned the hard way that the agent accent speaking to customers from different markets is an important variable.”

Moledo also emphasizes the significance of making sure corporate expresses with actions that they value distributors’ wellbeing just as much as their earning opportunity. For Hy Cite, that means facilitating a close relationship between executives and top leaders; leaning into recognition; and designing ways for distributors and customers to voice their opinions and experiences.

“Latinos, more than most, need to feel heard,” Moledo said. “As fast as we could after the pandemic, we started having events, conventions and meetings with independent distributors, and the attendance has been outstanding. We invest more today in events than we did pre-pandemic, but the return on that personal, face-to-face touch is great.”

Operating with inclusion and respect as the highest priorities is non-negotiable. It’s imperative that companies take the extra steps to ensure the opportunity they are presenting is tailor-made for the audience receiving it, and that their presence improves the quality of life for the people who call that country home. When diversity of backgrounds and ways of doing business are treated with dignity and honor, executives who have successfully built bridges into the Latino and Hispanic cultures say there is a shared entrepreneurial spirit that transcends language barriers and countries of origin.

“It doesn’t matter what language you speak or what country you’re in, everyone is looking for the same thing,” Domenzain said. “To be a part of something bigger than yourself.”


From the November 2023 issue of Direct Selling News magazine.

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OmniLife USA Breaks Ground on Texas Headquarters  https://www.directsellingnews.com/2023/03/03/omnilife-usa-breaks-ground-on-texas-headquarters/?utm_source=rss&utm_medium=rss&utm_campaign=omnilife-usa-breaks-ground-on-texas-headquarters Fri, 03 Mar 2023 16:02:46 +0000 https://www.directsellingnews.com/?p=18335 Omnilife USA, Inc., the subsidiary of Grupo Omnilife S.A. De C.V. in Jalisco, Mexico, has begun construction on its new corporate office, warehouse and manufacturing plant located in Allen, Texas.  

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Omnilife USA, Inc., the subsidiary of Grupo Omnilife S.A. De C.V. in Jalisco, Mexico, has begun construction on its new corporate office, warehouse and manufacturing plant located in Allen, Texas.  

“This project represents one of our most exciting ventures to date,” the company wrote in a statement. “The new premises will strengthen our efficiency, production and distribution capacity here in the United States as well as globally, enhancing our customer experience by serving all our distributors with a quality product and excellent service.” 

The new Texas headquarters is expected to be fully operational by Q2 2024. 

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A Big Year for Direct Selling https://www.directsellingnews.com/2022/02/07/a-big-year-for-direct-selling/?utm_source=rss&utm_medium=rss&utm_campaign=a-big-year-for-direct-selling Mon, 07 Feb 2022 20:14:38 +0000 https://www.directsellingnews.com/?p=15688 Several prominent companies are celebrating milestone anniversaries in 2022. Their continued success is a testament to the long-term viability and overall health of the channel.

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Several prominent companies are celebrating milestone anniversaries in 2022. Their continued success is a testament to the long-term viability and overall health of the channel. We want to especially acknowledge the monumental achievements of LegalShield and Nature’s Sunshine—both celebrating their GOLDEN anniversaries in 2022. Congratulations, and we wish you both another 50 years of success and innovation!

Each of the companies on this list has seen a tremendous amount of changes to the channel and came out on top by adapting their businesses and putting their distributors and customers first. We look forward to recognizing many more milestones and achievements from these ground-breaking companies in the future. 

Here’s a list of this year’s biggest anniversaries. 

Company

LegalShield | 50 years

Nature’s Sunshine | 50 years

Market America | 30 years

OMNILIFE | 30 years

Purium | 30 years

USANA | 30 years

Isagenix | 20 years

OPTAVIA | 20 years

Le-Vel | 10 years

Q Sciences | 10 years

Younique | 10 years

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Amaury Vergara Zatarain Appointed President of OMNILIFE CHIVAS Group https://www.directsellingnews.com/2020/01/30/amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group/?utm_source=rss&utm_medium=rss&utm_campaign=amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group https://www.directsellingnews.com/2020/01/30/amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group/#respond Thu, 30 Jan 2020 18:31:20 +0000 https://dsnnewprd.wpengine.com/amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group/ Amaury Vergara Zatarain has been appointed president of the OMNILIFE CHIVAS Group. At a meeting held in Guadalajara on January 22, 2020, the OMNILIFE CHIVAS Group’s Board of Directors decided on the appointment as a result of the Group’s achievements since August 2018 when Amaury was appointed executive vice president and general manager. According to […]

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Amaury Vergara Zatarain has been appointed president of the OMNILIFE CHIVAS Group.

At a meeting held in Guadalajara on January 22, 2020, the OMNILIFE CHIVAS Group’s Board of Directors decided on the appointment as a result of the Group’s achievements since August 2018 when Amaury was appointed executive vice president and general manager.

According to the Board, during that time OMNILIFE Group has been renewed and has generated important changes in the way things have been done in the company, particularly in respect to growth in sales, profitability, territorial expansion and connection with the existing OMNILIFE distributors in the 21 countries where the company has presence. There has also been restructuring and strengthening of Club Deportivo Guadalajara.

“I am aware of the great responsibility I have inherited and will continue day in day out with the great legacy initiated by our founding president Don Jorge Vergara,” said Amaury.

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Amaury Vergara Zatarain Appointed President of OMNILIFE CHIVAS Group https://www.directsellingnews.com/2020/01/30/amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group-2/?utm_source=rss&utm_medium=rss&utm_campaign=amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group-2 https://www.directsellingnews.com/2020/01/30/amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group-2/#respond Thu, 30 Jan 2020 18:31:20 +0000 https://dsnnewprd.wpengine.com/amaury-vergara-zatarain-appointed-president-of-omnilife-chivas-group-2/ Amaury Vergara Zatarain has been appointed president of the OMNILIFE CHIVAS Group. At a meeting held in Guadalajara on January 22, 2020, the OMNILIFE CHIVAS Group’s Board of Directors decided on the appointment as a result of the Group’s achievements since August 2018 when Amaury was appointed executive vice president and general manager. According to […]

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Amaury Vergara Zatarain has been appointed president of the OMNILIFE CHIVAS Group.

At a meeting held in Guadalajara on January 22, 2020, the OMNILIFE CHIVAS Group’s Board of Directors decided on the appointment as a result of the Group’s achievements since August 2018 when Amaury was appointed executive vice president and general manager.

According to the Board, during that time OMNILIFE Group has been renewed and has generated important changes in the way things have been done in the company, particularly in respect to growth in sales, profitability, territorial expansion and connection with the existing OMNILIFE distributors in the 21 countries where the company has presence. There has also been restructuring and strengthening of Club Deportivo Guadalajara.

“I am aware of the great responsibility I have inherited and will continue day in day out with the great legacy initiated by our founding president Don Jorge Vergara,” said Amaury.

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A Lifetime Of Change In One Decade https://www.directsellingnews.com/2019/06/01/a-lifetime-of-change-n-one-decade-dsn-global-100/?utm_source=rss&utm_medium=rss&utm_campaign=a-lifetime-of-change-n-one-decade-dsn-global-100 https://www.directsellingnews.com/2019/06/01/a-lifetime-of-change-n-one-decade-dsn-global-100/#respond Sat, 01 Jun 2019 05:10:20 +0000 https://dsnnewprd.wpengine.com/a-lifetime-of-change-n-one-decade-dsn-global-100/ Changes in the global environment for direct selling companies are happening rapidly on all fronts. Shifting consumer expectations, tighter regulations, increasing digital demands and new competitors are forcing us to examine ourselves inside and out—question who we are, what we’re about and how we want to move forward. We can shrink from these challenges, or […]

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Changes in the global environment for direct selling companies are happening rapidly on all fronts. Shifting consumer expectations, tighter regulations, increasing digital demands and new competitors are forcing us to examine ourselves inside and out—question who we are, what we’re about and how we want to move forward.

We can shrink from these challenges, or we can evolve. We can be resilient, innovative and bold. This will require new thinking and tough decisions, but it will position us to be even stronger. As the 2019 Global 100 list celebrates its tenth birthday, Direct Selling News examines how the industry has changed and what the landscape looks like as we head into the third decade of the 21st century as independent distributors.

First, the numbers

Collectively, the companies in the DSN Global 100 achieved $75.6 billion for 2018. Aggregate sales for the top 10 global companies on DSN’s Global 100 list were $40.8 billion in 2018. Twenty of the Global 100 grew by $100 million or more in the past year—including list toppers Infinitus, Natura, Herbalife Nutrition, Coway and Nu Skin. Newcomers O’Boticario and Atomy debuted at $1.22 billion and $1.5 billion, respectively. There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.


“There are 23 mid-market companies—those between $300 million and $1 billion on this year’s ranking. Five companies are above $700 million, and another five above the half-billion-dollar mark.”

Eighteen companies are making their first appearance on the Global 100 list, including companies from Brazil, Korea, Taiwan, Germany, Malaysia, Japan and Sweden. The biggest gaps on the 2019 list, though, come from the absence of 25 of the 26 China-based companies that made the list last year and some U.S.-based companies—such as Mary Kay, Isagenix, AdvoCare and Juice Plus—that chose not to report their financials.

In response to some unsubstantiated product claims, the Chinese government in January launched a 100-day review of all health and wellness direct selling companies operating in China, the industry’s second-largest market. Because of the increased scrutiny, most Chinese companies were unwilling to disclose their financial information to the magazine. This left room for 18 newcomers to the list and seven companies returning to the list after an absence.


“Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors.”

The economic and regulatory conditions in a global marketplace always fluctuate, and sometimes companies will decide to keep a lower profile, which is why it’s noteworthy that this year’s list includes 13 private companies that have reported their numbers to the Global 100 every year since it began in 2009. Public companies don’t have a choice about whether to share financials, but closely held companies do, and their transparency allows the Global 100 to present as clear a picture of the industry as possible.

Times, they are a changin’

The direct selling business and consumer habits have changed significantly over the last decade.

From a broad, cultural perspective, people now consider their involvement in a direct selling company in much the same way they consider any job. “The direct selling space is evolving from the days when it was sort of a niche way to do business,” says securities analyst Doug Lane. “Given advancements in technology and social selling, direct selling  is becoming more mainstream.”

But nothing has changed in our industry more than the prevalence of technology. In the last 10 years ecommerce and social media—mainly Amazon and Facebook—have transformed the way people learn about and purchase products.

In 2009, there were 360 million active Facebook users worldwide. Now there are 2.38 billion—and a huge number of them turn to social media for brand guidance. And Forbes reports that 70 percent of Americans with annual incomes of $150,000 or more have Amazon Prime memberships, which give people unlimited free shipping (now in one day) of more than 100 million items.

Overall e-commerce sales in the United States reached $517 billion last year, 14 percent of all U.S. retail sales, according to analysis of U.S. Commerce Department data. Amazon sales alone were $141 billion of that total—accounting for nearly one-third of ecommerce revenue.

Direct selling companies are spending millions to improve their online shopping portals, partly in response to the Amazon effect and partly because of regulatory pressure to distinguish more clearly between customers and distributors. Direct sellers have to offer customers a way to buy product without signing up to become a distributor, and creating direct online ordering systems is the easiest way to do that. Such changes come more quickly for smaller, newer companies, Lane says. But the larger the business, the more legacy systems and mindsets there are to move. “That makes it a big challenge,” he says. “But that’s what leadership has to do.”

Some direct selling companies are meeting this challenge head-on, responding with complete digital transformations of customer and distributor experiences, says Bob Bass, Lead Strategic Insights Analyst for Amway, which tops the Global 100 list for the seventh consecutive year, with $8.8 billion in revenue. “Changes I’m seeing are monumental, from the way companies support distributors to the emerging use of augmented reality.”

Augmented reality is fueling a trend called “experiential retail,” which is, ironically, drawing customers back to brick-and-mortar stores. For example, Pottery Barn allows in-store customers to place virtual furniture in digital versions of their homes. Nordstrom shoppers can select clothing via a mobile app and the store will have the items waiting for them in a dressing room when they arrive. French beauty products retailer L’Occitane lets customers take a cyber hot air balloon ride through the French countryside while they get a hand massage with real hand cream.


“Customers and distributors want to be reached in ways that are most meaningful to them. Everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.” – Bob Bass, Lead Strategic Insights Analyst for Amway

If some of these experiences feel familiar, they should—they’re a next-gen version of what network marketing has been doing through the party plan model for decades: letting people try and build a connection with a brand before they buy. This trend reinforces the core of our model while showing us how to enhance that model at the same time.

Beauty and wellness products are prime for augmented reality, says a recent market study—so as the direct selling channel’s largest category, these products give the industry an opportunity to use the tool on a broad scale. Amway’s already on board. Last spring, it partnered with a Silicon Valley company to implement the YouCam Makeup app, which makes personalized skin care commendations and lets customers put virtual Artistry brand makeup on their selfies.

With YouCam, Amway seems to be proving that even massive companies can be technologically agile, if they’re committed. Amway Chief Sales Officer John Parker says it’s all about a forward-thinking mindset. “We encourage our employees to stay hungry and focused on what is still possible rather than what we have already achieved,” he says. “As an industry we embrace what’s great about our channel—the combination of digital and social relationships with the delivery of live interactions and experiences distributors and customers will never forget.”

Getting personal

As consumers become more sophisticated about how and where they buy, they’ve also become more particular about how they want companies to market to them. “Customers and distributors want to be reached in ways that are most meaningful to them,” Bass says. “This means everything from attracting, developing and retaining more young leaders to honing in on what is marketed to different segments, so that your approaches are much more personal and relevant.”

Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners, says this personal approach starts with making sure the audience you want and the audience you have are the same. “Be realistic about what your company provides, and do some audience research to find out if it’s what your intended targets really want,” he says. “Maybe you have a product that has always appealed to Baby Boomers but you keep pushing your teams to recruit and sell to Millennials.” If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.

Parker says Amway’s strategy for keeping its momentum for so many years is to keep its ear close to the field. “We continually focus on listening to our Amway Business Owners, who are out there every day working with customers and new people in the business,” he says. “Like them, we know the importance of hard work, trying new approaches, studying others’ successes and failures and planning our next move, even when business is at its strongest.”

New frontiers

One ingredient and one concept that have burst into the marketplace in the last few years are putting our industry in an interesting juxtaposition: One is opening doors to astronomical sales, while the other is reminding us not to take our position for granted.

Let’s talk about hemp first. Products with cannabidiol (CBD)—a non-THC product derived from the cannabis plant—are becoming wildly popular for direct selling. DSN estimates that direct selling’s CBD revenue reached $300 million in 2018, will hit $600 million this year and will generate $1 billion next year.

At least 40 companies on this year’s Global 100 list sell products with CBD, and they’re seeing huge numbers. Four of them alone—including Las Vegas-base My Daily Choice/Hempworx and San Diego-based Kannaway accounted for $400 million of overall CBD sales last year. Sales at My Daily Choice/Hempworx increased from $10 million in 2017 to $100 million in 2018, a 900 percent growth rate.

While CBD has become the hot new category inside the industry, income opportunities with ride-share providers, on-demand errand services and private home rental companies are changing the game outside our industry, which used to have a lock on the “gig” idea.

According to a recent McKinsey Global report, more than 160 million people in Europe and the United States are earning money using cars, houses and time they already own. This is more than three times the 18.6 million U.S. direct sellers—4.1 million of whom are discount buyers or have no plans to sell the products and nine million of whom have gone inactive.

The lure of gigs is strong because they usually require little capital or training. You don’t need sales skills to be an Uber driver. You wake up, turn on your phone and customers fall out of the sky.


“If you’re losing or can’t gain momentum, a misalignment between your message and target customers may be partly why.” – Noah Westerlund, Senior Vice President of Business Development for SUCCESS Partners

Direct selling experts say that the industry can be competitive by appealing to people’s desire to work for more than just a paycheck. People want to be part of something with a greater purpose—they also will gravitate toward opportunities that provide support and ongoing training so that they can improve personally and professionally.

But we can’t keep doing everything the way we’ve always done it. For example, gig work pays on the spot and that’s a huge deal to its workforce. Direct sellers have to find ways of paying more quickly.

NuSkin, number seven on this year’s list with $2.68 billion in sales, introduced a new compensation strategy in late 2017 to allow for quicker payouts. Through NuSkin’s “Velocity” pay plan distributors can earn retail sharing bonuses daily when someone buys a product via their mobile app. “We found there was a fairly large group of people building a Nu Skin business because they needed income today, not six weeks, or even a week from now,” NuSkin President Ryan Napierski said at the 2019 Companies in Focus.

And about those customers “falling out of the sky?” Direct selling also needs to refine its process of distributing leads to field teams, Westerlund says. “That’s how we become an end-to-end solution that’s competitive with gig economy opportunities.”

Being better

How do we maintain traction where we have it and regain it where we might have slipped?

We always need to recognize and build on what makes us unique—our high-quality research-based products, the opportunity we give people to change their lives in small and big ways and our deep commitment to the communities in which we do business.

It’s also critical for companies to acknowledge and correct for their blind spots and missteps, and that means doing a better job on compliance, income claims and product claims. Bass agrees. Transparency is everything in this industry, he says.

In January, the U.S. Direct Selling Association launched the Direct Selling Self-Regulatory Council to hold the industry even more accountable to ethical business practices. Administered by the Council of Better Business Bureaus, the SRC will monitor the marketplace for questionable activity, investigate consumer complaints and report potentially noncompliant companies to the appropriate government agencies.

“We know that direct selling has sometimes suffered from perceived problems, occasional bad actors and others who pretend to be legitimate,” said DSA President and CEO Joseph Mariano. “We have decided to address these issues directly, by holding companies to the highest standards with an effective third-party regimen.”

Says Bass, “It’s in our collective interest to call each other out and hold each other accountable for deceptive and dishonest speech.”

In addition to staying mindful of industry-specific changes, it’s important to note that the economy is likely nearing the end of a decades-long expansion cycle. It’s too soon to know how much of a slowdown we’ll experience, but slowdowns are inevitable. And maybe a more moderate pace is exactly what everyone needs to catch their breath and make plans for the next race.


$100 million+ non-reporting companies

In addition to the Chinese companies not reporting this year, several $100 million plus companies previously represented on our Global 100 list chose not to report their 2018 data.

·       ACN ·       It Works! ·       Melaleuca ·       Premier Designs
·       AdvoCare ·       Juice Plus ·       Neora (Nerium) ·       SeneGence
·       Beachbody ·       Kyani ·       New Avon ·       Skaklee
·       Cabi ·       LegalShield ·       Norwex ·       Stella & Dot
·       doTERRA ·       Le-Vel ·       Omnilife ·       Sunrider
·       Forever Living ·       LuLaRoe ·       Pampered Chef ·       Thirty-One Gifts
·       Isagenix ·       Mary Kay ·       Paparazzi

 

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Natural Disasters Aftermath: A Message from DSN https://www.directsellingnews.com/2017/09/14/natural-disasters-aftermath-a-message-from-dsn/?utm_source=rss&utm_medium=rss&utm_campaign=natural-disasters-aftermath-a-message-from-dsn https://www.directsellingnews.com/2017/09/14/natural-disasters-aftermath-a-message-from-dsn/#respond Thu, 14 Sep 2017 17:14:48 +0000 https://dsnnewprd.wpengine.com/natural-disasters-aftermath-a-message-from-dsn/ In the past month, three natural disasters have struck North America and the Caribbean, killing hundreds of people and causing property damage amounting to billions of dollars. Many people in the direct selling community, particularly those in Texas and Florida, were affected by these horrific events. During the last week of August, Hurricane Harvey devastated […]

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

During the last week of August, Hurricane Harvey devastated the Houston area, causing catastrophic floods that claimed over 70 lives and displaced hundreds of thousands of people. Nearly 50,000 homes were damaged—1,000 completely destroyed—and approximately 700 businesses were damaged.

This past weekend, Hurricane Irma roared through the Caribbean, devastating Barbuda, St. Maarten and St. Thomas, before impacting Cuba and then coming ashore as a Category 3 storm in southwestern Florida. Early reports indicate that in the Florida Keys 25 percent of buildings were destroyed and another 65 percent suffered considerable damage. Flooding and downed trees have crippled many areas of the state, and millions of Floridians are without electricity as of today. Over 60 deaths have been reported in the Virgin Islands, Florida and Georgia.

Last Thursday, an 8.1 magnitude earthquake rocked the southern coast of Mexico, just north of Juchitan. It was the most powerful earthquake to hit the country in a century, felt as far as Mexico City and Guatemala City by an estimated 50 million people. Nearly 100 fatalities have been confirmed.

As the preeminent news source for the direct selling industry, we have been eager to share the powerful stories of direct selling companies coming to the aid of the global community. The generosity of this industry is one of its most admirable aspects—one that, sadly, often goes unnoticed in the business world. Our previous articles on Sept. 1 and Sept. 7 have noted the contributions made by direct sellers through monetary and product donations as well as in fundraising efforts and on-the-ground support. We acknowledge the efforts of these companies and their continuing support of such critical organizations as the American Red Cross, Salvation Army and United Way.

Yet, even as we report such news, we also cannot help but be concerned about those people in our direct selling community who call Texas, Florida and Mexico home. This includes such companies as:

It Works! – Palmetto, Florida
Jeunesse Global – Lake Mary, Florida
Monat Global – Doral, Florida
Omnilife – Zapopan, Mexico
Team National – Davie, Florida
Tupperware – Orlando, Florida
World Global Network – Miami, Florida
Zurvita – Houston, Texas

We send our condolences to those who have suffered a loss during these disasters, and we continue to pray for those who are recovering from them. Know that we are thinking of you.

DSN Staff

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