Founded | 1959
Headquarters | Middleton, WI
Top Executive | Paulo Moledo, CEO
Product Category | Cookware and Kitchenware
In recent years, many companies in the direct sales industry have evolved to reach the expanding categories of distributors today. They aim to attract the part timers, the side hustlers and the gig economy set, offering opportunities designed for any and everyone. But could the traditional distributor approach—one that encourages full-time attention to reach unlimited opportunity—be what the industry needs? Hy Cite CEO Paulo Moledo believes that it is.
New Season, New Strategy
Hy Cite was founded in 1959 by Peter O. Johnson, Sr. and flourished as a family-owned-and-operated premier cookware business for over sixty years. Still family-owned and still flourishing, Hy Cite ushered in a new era in 2022 with the appointment of Paulo Moledo as CEO. His transition into the role was years in the making—the realization of a meticulously designed transition plan that commenced when he joined the company as Senior Vice President of Strategy in 2019.
“Even though we are not a public company, we have a board of directors; we have an external board; and they felt that for the future of the company, they needed to start planning for a transition,” Paulo explained. “They looked for somebody that could come and do that very carefully with the owner of the company. We had outside help, with everything really, really detailed and carefully executed. And I believe it’s a case that could be studied by many companies on how to do a transition from a long-term CEO to a new one. My first six months, I was just learning about the business and developing a four-year strategic plan. When that plan was approved, I started taking operational responsibilities and executing that plan. Erik Johnson was the CEO for three years out of those four but fully supporting. And I was managing the day-to-day more and more as time passed.”
Paulo’s plan was ambitious, centered on doubling the company’s size within four years—a milestone he accomplished a year ahead of schedule, in 2022. Last year, he launched a new four-year strategic plan that would support the company’s exceptional growth through new product development, stronger product marketing and enhanced customer service. Both Paulo’s original four-year plan and the plan he’s currently executing include an overarching corporate priority for Hy Cite: the employee experience.
“Our number one priority is the employees. Hands down,” Moledo shared. “We tell everybody—we tell the distributors that the employees are our number one priority. We have more than 1,600 employees today. And we believe that if they are engaged, empowered to make the right decisions, if they have the tools to do their job, they will always do the right thing for the company. We’ve invested a lot in giving employees an amazing work environment, it will drive that sense of belonging. Our engagement score among the employees last year was 92 out of 100. Our employees really enjoy working with us. We have a very high retention, and I believe that’s one of the secrets of making our company successful.”
A New (Old) Approach
While Paulo’s leadership and strategic plans represented a new direction for Hy Cite, he’s quick to point out one critical aspect that has remained the same, something he’s proud of and committed to more than ever: Hy Cite’s dedication to the direct sales model.
“We’ve stayed the same in terms of being true to the channel,” he said. “We never play with the channel. We’re committed to direct selling as the exclusive channel for our distributors and customers. There’s no other way for a customer to get our products other than direct selling.”
Hy Cite offers high-end cookware and kitchenware exclusively through its network of 5,000 distributors operating in eight countries across North and South America. These distributors are primarily full-time business owners, as the company only recruits entrepreneurs looking for a full-time opportunity. These distributors are often family members within multi-generational businesses that are built and passed on as they grow. While many peers in the industry offer multiple entry points—affiliate sellers, part-time consultants, etc., Hy Cite focuses exclusively on the type of seller that historically made direct sales a worthwhile, lifelong opportunity. No starter kits, no recruiting bonuses and no inventory purchases. Nothing happens without a sale at Hy Cite.
“We stayed true to the earning opportunity above all else,” he said. “We try to recruit full-time independent distributors. We want entrepreneurs that will come and will be fully committed and dedicated to the opportunity. In order to have low churn among the distributors, you need to be committed to them, because otherwise they won’t be committed to you. We expect every single person that joins to make a meaningful income from month one. We don’t want people coming and going. We want stability. We want to grow by double digits every year. We have a retention of above 80 percent after the first year. I don’t need to recruit to grow because I have a very stable base of distributors that know how to sell.”
A Vision for the Industry
In August, the company introduced a new brand identity for Hy Cite. The updated colors, imagery and design choices are fresh and modern, revealing a new aesthetic for the company. Royal Prestige, the company’s product line, has long had its own unique branding, so this new brand launch is specific to Hy Cite as a corporate entity. Giving Hy Cite a new look and feel was an important step in pursuing Paulo’s larger goal of impacting the entire direct selling industry.
“We have a big dream,” he shared. “We want to influence the entire channel. We want to be visible to influence direct selling as an industry. The industry has changed over the years. It became this ocean of people coming in and leaving so quickly that they never experienced what direct selling is and is capable of offering. We want to show what the potential is for an entrepreneur who wants to be part of direct selling.”
He believes Hy Cite’s nurturing business model and meaningful earning opportunity attracts committed and loyal entrepreneurs and that this approach can serve as a model for others, making the channel stronger and even more impactful.
“Hopefully we’re going to motivate other people to double down on the channel rather than looking for alternative ways of selling,” he said. “That’s one key message that we want to put out there. We believe in the channel. We are committed where we need to work with others to promote the channel. I can see people asking, ‘Who are these guys?’ And we are ready to answer that question. We are a company that will not push inventory into the field. We are a company that will respect customers first and foremost. We are a company with a 50-year warranty on our cookware line that we honor. And—last but not least—we are a company that will treat employees above the average and that will strive to keep those employees with us long term. We are a company that believes in direct selling the way it’s meant to be.”
From the October 2023 issue of Direct Selling News magazine.
